The Government has been warned not to use the reform of business rates as an 'excuse' to reduce funding for local authorities.
Chief executive of the Chartered Institute of Public Finance and Accountancy, Rob Whiteman, warned a move to Consumer Price Index (CPI) to calculate rates ‘must not further reduce funding for local authorities whose budgets are already stretched’.
‘Any such reform to the way business rate increases are calculated must ensure funding for councils remains fiscally neutral.’
A response from the Society of Local Authority Chief Executives added: ‘The impact of any reform on the ability of local areas to fund such services adequately and how local government is funded more generally must be considered.’
