Supplementary Business Rates: Flexible stealth tax?

Posted by AccountingWEB PM | on Tue, 07/08/2007 - 12:41 3638 2 comments

The Communities and Local Government Committee published its report on “Local Government Finance - Supplementary Business Rate” today. It recommends that local authorities be given the power to levy an additional tax, over-and-above what is collected on their behalf through business rates.

The Committee says that the Government should look favourably upon proposals put forward earlier this year by Sir Michael Lyons in his report on the future of local government.

Continued...

no no no

carnmores | Thu, 09/08/2007 - 13:35 | Permalink

this a woeful idea which ever way you look at it, even the promise of frameworks is laughable, they will change the rules when its enacted.

perhaps they should tighten up the rules as they presently stand as they are still too onerous for most small business.

socialist boroughs will inevitably go for charges as high as possible hence understandingly increasing their attractiveness to poorly paid workers , mostly employed by the gov , and others in similar circumstances, and the businesses dont matter as much as they can only vote with their feet - this is gerrymandering in all but name

It will happen, in some shape or form

neileg | Thu, 09/08/2007 - 14:33 | Permalink

They tried the Business Improvement District idea to raise extra Business Rates, but it proved too cumbersome and easilly scuppered.

Bear in mind, however, that a local authority does not receive the NNDR (business rates) that they currently collect because it all goes to HM Government. So if a council actively encourages new or expanded businesses in their area, they receive absolutely nothing from this. The Revenue Support Grant that councils get from HMG is based on demographic data ( population, road length, pupil numbers) not the amount of NNDR collected.