100 per cent retention of business rates: issues for consideration Contents



1.Appeals pose a major challenge to 100 per cent retention and it is essential that the issue is resolved before 2020. (Paragraph 38)

2.The Government and local authorities should together explore the suggestions in paragraph 38 as to how appeals could be better tackled. (Paragraph 38)

The reformed system: 100 per cent retention dissected

3.Revising the underlying assessment of needs should be tackled in collaboration with local government, with input from an independent body. (Paragraph 47)

4.The Government should set out timescales for this work and confirm as soon as possible whether needs will be reassessed in time for the start of 100 per cent retention in 2020. It will also need to explain how and when the inevitable changes in resources distribution will be brought into effect. (Paragraph 47)

5.100 per cent retention must work in a way that ensures that areas with limited ability to generate growth in business rate revenue do not lose out. (Paragraph 70)

Other changes to tax levels

6.The Government should review whether it is practical, possible and fair for LEPs to play such a key role, taking into account the following concerns:

Additional responsibilities

7.Based on the evidence, we recommend that decisions on additional responsibilities should be guided by the following principles:

(1)New services should:

(2)Local government must have genuine discretion over how the services are provided and be able to control and influence their delivery.

(3)The funding levels for each new service should be agreed at the outset, and be accompanied by a full new burdens assessment, with councils having the freedom to manage resources as service demand increases. (Paragraph 120)

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9 June 2016