Birmingham could be one of the first councils to raise supplementary business rates for regeneration.
Albert Bore, suggested that the money raised under the government’s Modernising local government finance Green Paper, could go towards transport improvements in the city. The Green Paper, published two weeks ago, gives councils the power to charge a supplementary business rate.
Bore said discussions would start with the local business community “to determine an agreed joint agenda”. He stressed that nothing would happen without extensive consultation.
“We won’t move on this issue until we have an understanding with the private and public sector. I’ll not say we’re in favour of supplementary business rates unless the council and the business community share this agenda.
“But the levy gives us the opportunity to do some things that businesses want to see done. They may be prepared to see up to 5% levied. I will initiate discussions to determine an agreed joint agenda.”
At the Labour Party conference, trade minister Patricia Hewitt admitted small firms are worried by the government’s proposals for the levy. Councillor Bore said: “The small business community is always the hardest hit. This is an important issue and we would not undermine the competitiveness of small businesses – they’re on a knife edge already.”
Annette Fitzgerald, policy executive at the Birmingham Chamber of Commerce, said: “The chamber has concerns with the inclusion of a supplementary rate, which would only serve to open the gates to the setting of local rates within a 5% threshold of the national rate. We’re also concerned with the impact of business rates on UK competitiveness. The taxation and administration burden on business is already unacceptably high. Creative thinking on behalf of the Government to significantly reduce the burden of such rates would be welcome.”
Bore commented: “It’s quite right that the chamber of commerce is concerned about UK competitiveness. Any supplementary rate has to give businesses an advantage.”
He summed up by saying: “It’ll be perfectly feasible to introduce and won’t give us any problems. As for the timetable issue, that’s for the Government to determine.”
EGi News 28/09/00
