In October 2015 the Government announced its intention to enable local government as a sector to retain all business rates raised locally. The Government also committed itself to a full review of the needs and redistribution mechanism for local authority funding through the Fair Funding Review. The LGA has been collaborating with local authorities and central government to take these proposals forward.
Since the initial announcement by the Government, the LGA has been working closely with local authorities and the Department for Communities and Local Government (DCLG) on the details of the reforms.
A Local Government Finance Bill was introduced in Parliament in January 2017 to provide enabling legislation for the reforms and the LGA provided briefing and information to MPs throughout the Bill process. The Bill did not complete its legislative stages before the 2017 general election and was subsequently not reintroduced. DCLG are considering ways in which the Government's manifesto commitment to give local government greater control over their income can be taken forward.
In March 2016 a steering group and working groups were established to consider initial proposals. The groups met regularly throughout 2016/17 and meeting papers are available below. There are also links to the LGA's responses to the Government's consultations on business rates retention and call for evidence.
To ensure that views from across the sector are represented in the development of a new system, we are inviting you to submit your views on all papers of all groups set up to help implement business rate retention as listed below. To feed in to the work on a new system for 100 per cent business rate retention, please email firstname.lastname@example.org
A technical steering group and a number of sub-groups have been established to provide information and expert advice to support the LGA and DCLG in advising Ministers on the setting up and implementation of this new system. The Steering Group will meet regularly and papers will be updated here.
Technical Working Group on the Fair Funding Review
ALATS Paper – Local Government Group
Systems Design Working Group
Responsibilities Working Group
Accounting and Accountabilities Working Group
Interaction between central government protections and power to reduce multiplier in two tier areas
Business Interests Group
Consultation responses and other items
Annual local government finance settlements
Each year local authorities’ core funding allocations for the forthcoming financial year are announced by Government in the provisional local government finance settlement, usually in December. Following consultation, allocations are confirmed in the final settlement, usually in February
The Autumn Statement was one of two major economic statements made by the Chancellor of the Exchequer every year.
Ahead of each Budget statement the LGA responds to the Government's call for written representations. Our submissions outline proposals for government