Here's a conundrum for the BID and WBC's cuts programme.
Every year, councils collect the business rates on all commercial property in their area, and send it to the Treasury, who then send some of it back in the shape of "Revenue Support Grant". West Berkshire is a net contributor by some £40-£70m.....or 25-35% of the WBC annual budget.
Looks like the Government's going to let us keep our local business rates, which turns everything on it's head. The council doesn't need any more cutting, and there's no point with a BID that would generate a mere £2m a year max, when WBC will be sat on more than enough.
Well done Nick Clegg! I'm sure the local Lib Dems will be delighted that you've stopped our new shopping tax in it's tracks and created a huge warchest for the Tories to blow.
It will be interesting to see how this changes the local development framework - it will much increase the incentive to get commercial premises built.
The big question is whether the West Berkshire business rates exceed the government grants that will be cut to compensate. If not it won't make that much difference.
This is good news for West Berkshire, though I don't see how it would stop the BID.
It just means this area would get it's fair share of Business Rates.
Yes user...in fact it'll be great news when we get 50% off our council tax bills (due to the extra income). That means £750 of my money back in my pocket to spend in the real economy.
What will you spend your council tax rebate on then?
Yes user...in fact it'll be great news when we get 50% off our council tax bills (due to the extra income). That means £750 of my money back in my pocket to spend in the real economy.
What will you spend your council tax rebate on then?
What makes you think there will be more money? Anything collected in business rates will probably just be cut off WBC's government grant funding.
What makes you think there will be more money? Anything collected in business rates will probably just be cut off WBC's government grant funding.
You're probably right. WBC gets £40m from central government, and raises £90m through council tax. I believe the business rates are worth £40m to 75m a year, so that would still leave us in the black.
I'm not convinced a 1% tax on the town centre will be enough, especially with the forthcoming vacancy rate caused by Park Way etc.
I hear the Orange mobile phone shop is the latest to throw in the towel, our vacancy rate could reach 10% quite easily. I'm assuming the BID can't collect business rates on vacant buildings, so either it won't generate the funds promised, or the tax may have to be higher to deliver anything meaningful
I'm not convinced a 1% tax on the town centre will be enough, especially with the forthcoming vacancy rate caused by Park Way etc.
I hear the Orange mobile phone shop is the latest to throw in the towel, our vacancy rate could reach 10% quite easily. I'm assuming the BID can't collect business rates on vacant buildings, so either it won't generate the funds promised, or the tax may have to be higher to deliver anything meaningful
There are more shop changes/closures on the cards. They make interesting viewing, some of the commercial property websites.
There are more shop changes/closures on the cards. They make interesting viewing, some of the commercial property websites.
Couldn't see anything significant, though I think £65k a year for the Early Learning Centre's a bit steep!
But I hear that 3 local firms recently appealed their business rates and in one case got £55k knocked off. My man at the rent tribunals says lots of retailers are beating a path to keep their taxes down. I wonder if they're outnumbered by the ones who want to pay more through the BID.
You're probably right. WBC gets £40m from central government, and raises £90m through council tax. I believe the business rates are worth £40m to 75m a year, so that would still leave us in the black.
If business rates bring in £75m giving WBC a £35m bonus the Tories could build that bridge at Thatcham station after all.
It all seems very odd - why are the government giving away cash at a time when they need every penny they can raise? Will councils where business rates are far lower than their government grant still get the grants previously funded by the excess business rates generated in affluent areas? If so where is the money coming from?
Is this just a Cleggism or is it real government policy?
All I am saying is that it sounds too good to be true. Surely someone is going to lose out on this change? We could always adopt the "as long as we are ok approach", and on that basis localised business rates should give us more cash as a council than we have now, but not much more.
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