St Helens fears £40m loss through localised business rates

GOVERNMENT plans to reform business rates will see St.Helens Council losing out to the tune of around £40m, it has said.

Currently business rates are set centrally, collected locally and redistributed to councils according to need. However, plans have been drawn up by the coalition government to let each local area keep the money they receive in business rates in a bid to encourage councils to be more business-friendly.

St Helens Council said that the move could cost it £40m, and that the proposals will hit less affluent areas much harder. Liverpool Council has already argued that the move could cost it £112m in lost revenues a year.

St Helens Council Leader Marie Rimmer said:  “Westminster Council could benefit from over a billion extra pounds while cities like Liverpool and towns like St.Helens could lose millions.

“The great fear is that the north-south divide will widen even more.  
“Northern councils will find it impossible to attract businesses as fast as councils in the south. If this goes ahead, our vital services will be at risk – we simply cannot find more savings without the frontline being decimated.

“We urgently need to know what, if any, financial support will be given to councils whose spending needs are greater than what they collect from business rates in order to continue with vital frontline services?  Disadvantaged areas like St.Helens must not be left to fend for themselves cut adrift from central funding.”