The majority of businesses believe councils should be given the freedom to set business rates locally, according to the results of a new poll.
A survey of businesses by the Local Government Association (LGA) found that two-thirds supported the notion councils could set rates in discussion with local businesses. Only 7% of businesses disagreed with this idea.
The LGA said the freedom to set business rates locally would allow councils to cut rates to encourage growth or raise rates to fund investment in the local economy.
Chair of the LGA, Cllr David Sparks, said: ‘This polling shows that businesses up and down the country and across different industries have lost faith in the current system of business rates and agree that it should be a local tax set by local areas.
‘Councils could do much more to support small businesses if we were given the freedom and finance to set rates and discounts locally. We could also invest in infrastructure and vital local services if all of the money a business paid was retained by local government.’
The survey also revealed that 47% of UK businesses are concerned about the impact on their business of cuts to council services, such as road maintenance, planning and licensing, over the next few years.
The LGA is calling on the Government to publish full details of the business rates review announced last year, and to commit to the devolution of powers in next month’s budget.
