Summary
On 25 November the Chancellor of the Exchequer’s Spending Review announcements included some limited further details of the approach the Government intends to take to devolve 100% of business rates to local government by the end of the current parliament (2020).
The Government will consult on changes “taking into account the main resources available to councils, including council tax and business rates”. Responsibilities transferred are likely to include Housing Benefit administration costs, public health funding and, in London, TfL’s capital grant for transport infrastructure.
This paper outlines for Leaders:
• The further details provided in the Spending Review on 25 November;
• Proposed overarching ambitions to inform London Councils’ lobbying and contribution to technical work to help develop the reforms;
• Proposed governance arrangements to oversee the development of London-wide proposals.
Recommendations
Leaders are asked consider the report and to:
(1) endorse the four overarching ambitions summarised in paragraph 13, and expanded in paragraphs 15-53, to guide the development of proposals for a rates retention system for London
(2) endorse the proposals for political and officer oversight and guidance for the work required (paragraphs 54-55) .
