|
The government has announced that local authorities, which encourage new businesses into deprived areas, are set to benefit from new proposals for a £1 billion bonus programme.
The scheme, due to start in April 2005, would allow councils to keep the extra income generated by encouraging new firms into their area. Currently, the money is collected by central government.
According to Treasury estimates, UK councils stand to gain a total of around £1 billion over three years.
Under the new proposals Stockport Council would have received an extra £10.5 million this year with Peterborough Council benefiting from £7 million more cash.
The announcement came as Deputy Prime Minister John Prescott and Chancellor Gordon Brown launched a new consultation paper at the Local Government Association (LGA) conference in Harrogate.
John Prescott said: "This scheme should give councils a real incentive to work together with business to create enterprising and thriving communities."
"We want to create a win-win situation where flourishing businesses will benefit everyone in the community," he added.
But Gordon Brown added that central government must still dictate the level of business rates and not lose any of the existing income it generates from local firms.
Public consultation on the plans will conclude in October, with the changes due to come into force in April 2005.
|
