In 2015, the Chancellor announced that local government as a whole would be able to keep 100 per cent of business rates by 2020.
As in previous years, individual councils won't keep the full amount of business rates collected in their area. There will continue to be a system of redistribution across the whole of local government to make sure that councils which have higher needs or have less capacity to raise business rates do not suffer. However, individual councils will be able to keep subsequent growth in their business rates income.
Whilst we don't currently know exactly what the system will look like, the LGA is working with Government and engaging with local authorities to consider how this could work.
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