Trade leaders welcome business rate plans

Trade leaders have tentatively welcomed Government plans to let councils set their own business rates — but called for more clarity in the details.

Deputy Prime Minister Nick Clegg revealed the plans at a Local Government Association conference, explaining that councils would get to keep the money raised from business rates and choose the levels themselves. Fees will be capped, but different areas could lower their rates to attract businesses.

Currently rates are set centrally and collected by councils, which send them to the Government to redistribute.

Clegg said the plans will be included in a forth-coming consultation and later in a local government finance bill.

British Beer & Pub Association chief executive Brigid Simmonds said: "If done

correctly, this would be a positive move for pubs, as it would give councils an incentive to ensure that their local hospitality trade is thriving — an incentive they don't have now, as rates are pooled nationally.

"More business profits would mean more rates for councils, so they would be more likely to address the needs of key local businesses, including pubs."

Kate Nicholls, strategic affairs director at the Association of Licensed Multiple Retailers, said that allowing local councils to keep the business rates could be more democratic for local pub businesses.

"The principle could help businesses and could give them a voice," she said. "We have councils in places such as Westminster where few people live and it is full of businesses, yet residents have the voice. This could be potentially helpful provided the checks and balances are in place."

However, Nicholls issued a note of caution about the move, claiming there is "not enough detail" on how this would work in practice.

Fleurets' head of rating Michael Yass agreed more clarity is needed. He added: "Is this simply a move to help central government to minimise their own costs?

"This also means that some local authorities will be better off than others, but will they actually give businesses additional support or will they still claim that they are stricken for funds? For example, I have a lot of people saying to me, 'what do we get for paying business rates?' Many people will be asking if they will still have to pay for rubbish collections, for example."