A property consultancy has backed new council powers as a way of resolving long-term local infrastructure funding. The Business Rates Supplements Bill, announced in last week's Queen's Speech, will give local authorities the power to place a levy on businesses and retain the proceeds for economic development. Consultant Drivers Jonas LLP, argued the new levy – which has not been universally welcomed by business leaders – could provide the answer to funding future local development. Authorities will be able to set a supplement on the current national business rate of up to 2p per pound of rateable value. The Bill makes provision to exempt business properties with a rateable value of £50,000 or less. But the company also warned there would be limited gain for councils during the current downturn, with little new development now going ahead. Stuart Knight, the company's head of local government, said: ‘Local authorities have long-sought the power to retain and invest business rate revenues in infrastructure locally. ‘This is strong evidence of the Government's commitment to local empowerment, and should provide business with the comfort that the proceeds will be retained for investment in the local area.'