黑洞社区

Northern Powerhouse minister James Wharton has said councils that stand to seriously lose out under Chancellor George Osborne鈥檚 plans to devolve business rates will get extra government support.

When asked about the plight of councils with little business activity in their area at a Conservative Party conference fringe event organised by Conservative Home, Wharton said there would be 鈥渁ppropriate Conservative solutions to the concerns you raise when the policy is published.鈥�

Speaking to 黑洞社区 after the event, Wharton said he couldn鈥檛 give any more detail at this time, but confirmed that councils whose income will reduce sharply from the devolution of business rates would be given some form of support. He said: 鈥淵es we鈥檝e thought about it and it鈥檒l be in the policy when the details are announced.鈥�

Osborne announced yesterday that councils will in future be able to keep 100% of the business rates they levy in their area, and would be free to cut the rate to attract more businesses if they choose. Those areas with directly elected mayors would also be allowed to raise rates by around 2% to pay for infrastructure. In total 拢26bn of business rates are levied across the country.

The policy is likely to most benefit dynamic economies with many businesses. The Evening Standard newspaper said it had estimated that London would benefit to the tune of 拢7.5bn. Bristol mayor George Ferguson likewise told 黑洞社区 the policy would be positive for his city.

However, Labour shadow home secretary Andy Burnham said the move would be damaging for lesseconomically dynamic areas. He said on Twitter: 鈥淏ig contradiction at heart of Osborne speech. Says wants to close North-South divide. But then announces taxation reform that will widen it.鈥�