I realise I may be a lone voice in being
entirely cynical over retention of business rates but:
Any system that is dependent on redistribution
of business rates is not a retention of business rates.
Talk about the
advantages of retaining the benefit of growth in the business rate pool, this ignores
the difference in growth between North and South. Rateable values in the south
not only start from a point where they have much higher values for comparable
properties but the rate of growth has been, and I see no reason for it to
change, greater than in the North. So retaining the benefit of growth means
that the South will get richer and richer and the surpluses will not be
available for redistribution. We already see the situation where Westminster
has one of the lowest community charge rates in the country, we can predict
with retention of business rates they will be able to pay a premium rather than
charge a community levy.
At the very best we will be dependent on a
secretary of state (remember Eric) being fair in redistribution from mostly
southern authorities to mostly northern authorities.
Anything else will the end of local
government in large parts of the country.
