Heather Jameson 17 February 2016

Business rates expected to reach record levels

Business rate income is expected to increase by £400m to a record £23.5bn in England for 2016/17, according to new figures released today.

Local government minister Marcus Jones said the increase is down to a rise in new business.

The record amounts come as local and central government start the debate on devolving business rates and scrapping revenue support grant by 2020.

Mr Jones said: ‘Councils already plan on handing out discounts of £3.2bn which supports charitable work, fills vacant shops and encourages entrepreneurs but we want to further incentivise councils to do even more.

‘That’s why by 2020 councils will have greater financial autonomy and be handed the power to cut rates as much as they like to boost enterprise in their local areas. And those that do give business a helping hand will reap the rewards - keeping 100% of the additional growth they generate.’

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