BUDGET 2015: Manchester’s ability to retain 100% of the growth of business rates, which was announced in the Budget today, could generate £1.3bn.
Manchester currently retains 50% of business rates growth income.
Lord Peter Smith, chair of Greater Manchester combined authority, said: “We hope this latest announcement will be the first step to full business rates devolution as we continue our journey towards a financially self-sustaining Greater Manchester.”
James Thompson, head of business rates at Deloitte Real Estate, said: “The 10 authorities making up the Greater Manchester combined authority have a total rateable value of almost £2.75bn, which would generate around £1.3bn – around 50% more than Wales.
The chancellor also called the election of a mayor in the city “the most exciting development in civic leadership in a generation”.
A comprehensive transport strategy will also be developed for the North and the promotion of the chemical industry in the North East and the tech industry in the North West were also mentioned in the Budget.
The government has currently committed to:
• £13bn of investment in transport in the north of England: connecting cities, electrifying the main rail routes, building the northern rail hub and providing new trains through the new Northern Rail franchise;
• £2.7bn of investment in new trains on the east coast, and investing in major road upgrades including the A1, M62, M1, A556 and Mersey Gateway Bridge, in addition to the £50bn commitment to develop the High Speed 2 (HS2) rail network;
• building on the north’s existing strengths in science and technology with major new projects – including the Sir Henry Royce Institute, Cognitive Computing Centre at Daresbury, Newcastle Institute for Ageing and National Graphene Institute – as well as ensuring that future revenue benefits of shale gas exploitation are reinvested through a long-term investment fund;
• investing in cultural projects in the north, including £78m for the Factory Manchester; and
• devolving power to Sheffield, including power over transport, skills and business support.
