The government has announced that local authorities will be allowed to keep money raised by business rates on new developments.
It is hoped that the “growth incentive”, as the government has dubbed the reform, will encourage local authorities to look more favourably on high-density commercial developments.
London First welcomed the news.
Jo Valentine, chief operating officer of London First, said: “This is great news. London First has been arguing for a scheme of exactly this kind for some time and we have modelled plans to show how it could work.
“It is crucial, however, that money raised in this way is used to help to fund both specific local neighbourhood renewal projects in areas of deprivation and projects such as the Thames Gateway, Crossrail and other major projects which London desperately needs and for which we have been arguing.
“It could also provide a means of helping to raise the money for a London Olympics in 2012, if a successful bid is mounted.
“It must not simply be absorbed into councils’ general income.”
The change will be introduced as an amendment to the local government bill shortly.
See Estates Gazette this Saturday for the full story.
References: EGi News 27/02/03
