Boroughs win support to have say over rates

09 August 2007
 
London boroughs have won support from MPs in their battle to have freedom to levy supplementary business rates.

The Communities and Local Government select committee has rejected suggestions that powers to levy SBRs should be restricted to the mayor of London and Greater London Authority.

MPs say the boroughs should be able to block GLA plans to raise an additional business rate if they achieve a two-thirds majority against, but they should also be free to levy SRBs individually or in partnership with other boroughs.

Both Sir Michael Lyons and the mayor of London, Ken Livingstone, had said in evidence to the committee that SRBs should be confined to the GLA to help fund capital-wide investment and infrastructure schemes, such as Crossrail, which would benefit all Londoners.

However, Merrick Cockell, chairman of the boroughs’ organisation London Councils, stressed the importance of having local control over investment spending, and called for a balance between projects which achieved ‘a local, immediate, visible benefit to communities and… the grand schemes for London’.

‘Local communities and businesses must be able to directly benefit from the additional money that a supplementary business rate could raise. ‘To achieve this, boroughs must have the power to levy a local supplement on business rates. This is why I am delighted the select committee has endorsed our view,’ said Cockell.

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