Ministers have slashed the cash available to councils under a flagship business growth incentive scheme by 33% . Local government minister, Rosie Winterton, announced on 23 July the local authority business growth incentive (LABGI) scheme, which allows councils to retain a share of increased business rate revenues generated in their area, will now be worth £100m by 2010/11. As part of the spending review in 2007, the Government announced councils would receive £150m between 2009 and 2011. The intention was to pay £50m in 2009/10 and £100m in 2010/11. But, as part of the Government's cost-saving drive during the recession, Ms Winterton has now revealed the LABGI cash available for 2010/11 will be just £50m. A CLG spokesman said: ‘The reward fund now reflects the Government's efficiency drive to reduce backroom costs, announced in the 2009 Budget.' A senior source at Eland House accepted the reduction would ‘not be viewed positively by town halls'.