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More than £10bn could be raised to accelerate investment in England's cities if businesses were to support a Supplementary Business Rate (SBR). This is the finding of a new report out last week from the Centre for Cities, an independent research unit based at the Institute for Public Policy Research. Dermot Finch, director of the Centre for Cities, said: ‘Supplementary Business Rates have the potential to allow cities to invest more than £10bn in their transport systems and other infrastructure assuming an SBR is in place for more than 30 years.' ‘They would also give businesses greater input into local decision making. Government and local councils need to work with businesses to reach a consensus on how SBRs would work in practice.' The Centre for Cities report claims SBRs could offer particular scope in London, where a 4p supplement could generate over £400m a year. With a 30-year commitment this could provide London with the potential to borrow more than £6bn for key infrastructure projects, including Crossrail. The report concludes that if SBRs were implemented they would be a new tax. However, if designed properly, with a clear role for business in identifying key infrastructure projects for investment, they could help to promote business growth and stronger local economies. Last month a Department for Communities and Local Government select committee report-endorsed business rates with chair Dr Phyllis Starkey arguing: ‘Supplementary business rates could offer local areas a means of investing in themselves. ‘But the British Chamber of Commerce said councils must allow business to vote if an SBR is to be introduced. The report recognises that SBRs are not a "simple answer" to all of England's cities' investment needs, adding that ‘should they be introduced, SBRs could be implemented differently in different cities'.

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FINANCE

£10bn 'could be raised by extra business rate'

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