The direct financial incentive for local authorities to boost growth and prosperity in their areas as a result of business rates retention 'remains weak,' London Councils has told the Treasury. Despite government moves to allow councils to keep a proportion of the business rates paid locally, London Councils said the 50% retention rate was 'low' and the definition of growth, which excludes revaluation, was 'narrow'. Ahead of the deadline for responding to the Government's long-term review of business rates tomorrow, London Councils warned that the move from centrally-allocated grants to financially incentivising economic growth could 'produce unwanted side-effects if not implemented effectively'.
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