Business are set to be able to vote on whether local councils can impose a supplement on business rates.
In a green paper on local government finance the Department of the Environment proposes councils be able to levy up to one per cent extra per year on business.
The government envisages the creation of formal ‘partnership arrangements’ between business and local authorities.
However, the British Chambers of Commerce has called the supplement ‘another tax on business’. Chris Humphries, Director General of the BCC, said: ‘The provision for business consultation is inadequate with the danger that again business picks up the bill for poorly controlled spending.
Not only are these proposals likely to undermine the good working relationships that have developed between local authorities and business communities, but they could also threaten local economic competitiveness.’
The BCC fears councils will be able to levy the supplement and only then seek agreement on how it should be spent.
However, there is to be three months consultation on the proposals and actual legislation is not expected until after the next general election.
Andrew Tyrie airs views on the Finance Bill, 'Making Tax Policy Better' report, and Brexit
In our latest managing partner Q&A looking towards 2017, CVR Global's Richard Toone talks about recruitment, and the potential threat of competition from the legal sector, as key issues for the firm in the coming year
Deloitte to avoid tendering for government contracts over the next six months, to appease Theresa May following consultant's report that painted a less-than-flattering picture of Brexit plans
In our first Q&A looking towards 2017, Menzies senior partner Julie Adams flags up increasing digitisation, aligned with more hands-on consultative services, as the key mix for her practice