In his speech at the Conservative conference in Manchester theChancellor has announced plans to allow local governments to keep the business rates they collect and to abolish the uniform business rate, while giving local areas powers to cut rates or add a premium to them:
In the speech full of references to the Northerm Powerhouse and plans to bridge the North South divide, Osborne also spoke of Manchester’s Gothic Town Hall.

“a great civic cathedral, where the decisions affecting this city would be taken’ not remitted to a committee in London.But over the decades, the wings of local government were clipped again and again by all parties, most especially ours.” Adding that 

Almost everything, from the amount they could spend… to the taxes they could keep…to the work they undertook…was determined in Whitehall. It’s time to face facts. The way this country is run is broken.

Osborne instead promised that for big cities with elected Mayors, as Manchester will have in eighteenth months,

“Provided they have the support of the local business community, these mayors will be able to add a premium to the rates to pay for new infrastructure and build for their cities’ future.”

Manchester, along with London and Sheffield, will see the abolition of the local government grant with councils able to keep all the rates they collect.

Local authorities will get 100 per cent of their rates by 2020 and will also have freedom over the rates in their area, as the Chancellor announced he was abolishing the uniform business rates. 

Once the reforms are in place, city mayors will be able to raise business rates by up to 2p in the pound with the approval of a majority of businesses represented on the local enterprise partnership in order to fund infrastructure projects. Councils will also be able to lower business rates to compete with one another for local trade. 

 

 

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