Government Wants Councils To Keep Business Rates Money

The Town Hall

The way in which our Council is going to be funded is changing.

The government wants the Town Hall to keep the money raised from business rates instead of handing it over to Whitehall.

It’s an incentive for Councils to promote economic growth, as the more business rates generated, the more money they’ll have. Last year, £1.3million was collected here.

The proposal would mean that there’d be less dependency upon central government grants.

Last year, combined Council committees budgeted to spend £4.5m meaning subsidies are needed.

The proposal sent out by the Communities Minister, Eric Pickles, will have some safeguards for Councils with a high degree of poverty or special needs.

Director of Finance, Peter Lawrence, says his team has received very little detail on how the changes will affect the islands and whilst the headlines make it look like enterprising Councils will benefit, he feels we’re in an unique position and that what would work on the mainland may not work in Scilly.

The Town Hall will make their opinions known during a consultation process when they are given information on the new proposals

The Government wants to move quickly and get legislation in place by the autumn. It won’t affect the way business rate payers pay their bills.