This week the Localism bill became law after it was given royal assent by the Queen.
The move which will restore some financial autonomy to local authorities is anticipated to encourage growth and development and has on the whole been welcomed.
However despite the enthusiasm voiced for this new level of accountability, many have raised concern over the implications for the countries poorer areas. Industrial areas in particular, struggling to entice new investment and development are likely to lose out and it is argued that the North South divide may broaden.
Whilst incentivising councils to think and act in the best interest of local business is a positive, the reality might not be quite as well received. There is a very real argument that many councils will lose out now that central distribution based on need is being rejected in favour of local control.
For the more cynical, there is a fear that the new powers which give cash strapped councils a direct interest in rates collected, might result in a focus on properties that are either under assessed or not assessed at all, rather than promoting growth and development.
Whilst local authorities will have a level of renewed control the uniform business rate is to remain at a standard national level and councils will not be given full powers to set their own rates charges, restricting council’s fiscal autonomy in the area.
Robert Brown
Partner, Rating
(0113) 221 6120
robert.brown@sw.co.uk
