Business rates pilots set to spearhead devolution drive

17 March 2015

Radical plans to overhaul business rates will include devolving up to 100% of the rates to pilot authorities in a huge step towards fiscal devolution, The MJ understands.

As The MJ went to press on the eve of the Budget, Cambridgeshire – including Peterborough – and Greater Manchester were expected to be announced as pilots to retain 100% of additional business rate growth.

Speaking in Cambridge earlier this week, chief secretary to the Treasury, Danny Alexander, gave his resounding support for fiscal devolution. He said he would review business rates and ‘examine alternatives for raising money through a local tax’.

Mr Alexander said: ‘I believe, as a rule of thumb, that there should be much greater local control of business rate revenues.’

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Whitehall Local Government Association Business rates SOLACE Devolution Combined Authority Fiscal Freedom

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