Item 6. Business Rates Devolution (L13/15)

On 5 October the Chancellor of the Exchequer announced substantial changes to the way local government will be funded by the end of the current parliament (2020).


Most significantly, this included 100 per cent retention of business rates, accompanied by new (as yet undecided) responsibilities, and the abolition of Revenue Support Grant (RSG).

This paper outlines for Leaders:

  • how the current system works and reforms that London Councils has proposed in recent lobbying;
  • the details of the reforms announced by the Chancellor so far;
  • issues for London local government to consider as these reforms develop; and

what this means for the wider local government finance system

Leaders are asked to:

  1. note the content of the report and the issues described in paragraphs 12 to 21; and ongoing technical work and lobbying to secure the changes advocated in the Spending Review submission.