Doing business locally should be less taxing
25 April 2019
Local authorities have a significant impact on business conditions and cost competitiveness in their locality through commercial rates and other charges. Commercial rates are a form of local taxation, mostly to fund services that businesses do not consume. Reducing the burden of commercial rates would make it easier for business, particularly SMEs, to create jobs.
- Local authorities must be transparent and fair when determining the annual commercial rates bill. All local authority charges should be reviewed in the context of impact on local business competitiveness.
- New commercial rates incentive schemes are needed to encourage regeneration, entrepreneurship and productive investment. Securing a wider revenue pool would also reduce the burden on local businesses.
- Central government, local property tax, and service charges must make a larger contribution to local authority finances. Current funding practices must be overhauled.