London Councils is urging the government to give careful consideration to the issue of appeals as it looks to move local government to 100 per cent business rates retention by the end of this Parliament.
The cross-party organisation spoke out as the House of Commons’ Communities and Local Government Committee published the interim results of its inquiry into 100 per cent retention of business rates.
Commenting on the report, Mayor Jules Pipe, Chair of London Councils, said: “We welcome today’s report from the committee and particularly its focus on the issue of business rates appeals. It is vital that government gets this right to avoid creating significant knock-on effects as further responsibilities are devolved, and local authorities rely evermore on business rates income to fund the services they provide.
“In London, some authorities have as much as 40% of this income trapped in a lengthy appeals process and – if this continues into the new system – there is significant risk that important services relying on this funding would not be delivered.”
“Given the complex variety of local authority areas across the country, it is clear that this is not a situation where a ‘one size fits all’ approach would work, and we look forward to working with government to arrive at an effective solution.”