04 October 2002
Council leaders across England and Wales are anxiously awaiting the unveiling of the Local Government Bill, still under consideration for inclusion in the Queen's Speech, because it is likely to grant councils additional powers to raise charges levied on local businesses.
The new powers would form part of the Office of the Deputy Prime Minister's plan to roll out its public-private Business Improvement Districts, aimed at helping councils regenerate commercial areas.
Private companies would be formed to use the levied funds to clean streets, remove graffiti and update shopping facilities.
A spokesman for Liverpool City Council said the Liberal Democrat leadership was 'ready to plough ahead with ballots for rates rises in order to improve local amenities'. Coventry's Labour administration has also sounded out the ODPM.
Under current law, companies must volunteer for supplementary business rates. A source close to the ODPM told Public Finance that was akin to 'asking a man if he would like his head chopped off'.
Under the new approach, authorities could ballot businesses and levy across-the-board rises, provided they have majority support. 'But that approach also presupposes the willingness of most businesses to cough up cash voluntarily,' the source said.
PFoct2002
