Supplementary business rate could raise £10bn

30 Aug 07
English cities could raise more than £10bn in extra finance if they were allowed to raise a supplementary business rate, according to research by Centre for Cities.

31 August 2007

English cities could raise more than £10bn in extra finance if they were allowed to raise a supplementary business rate, according to research by Centre for Cities.

The think-tank's August 28 report shows how much SBRs would generate in each of England's main cities. The revenue should be used to revive major transport and infrastructure projects, it says.

The results are most eye-catching when applied to Greater London, where a 4p rate could generate more than £400m annually and lever in loans in excess of £6bn. The report suggests this could be used to finance business's contribution to Crossrail and other high-profile schemes.

In Greater Manchester, a 2p rate could yield approximately £40m a year and support a 30-year loan of £600m, enough to help the city complete the third phase of its Metrolink tram network.

Support for SBRs has been gathering momentum after Sir Michael Lyons came down in favour of the tax in the final report of his local government inquiry. London Mayor Ken Livingstone is also a proponent and the Treasury's sub-national review, published in July, promised to explore it.

David Frost, director general of the British Chambers of Commerce, said the amounts that could be generated reinforced the need for businesses to have a vote on any SBRs. 'It cannot be right that SBRs could be arbitrarily imposed by councils,' he said.

Report author Ben Harrison said it was critical that businesses were brought in as early as possible. It's not only about getting their support but also making sure that they contribute to the discussions about where the revenue from an SBR should be targeted.'

PFaug2007

Did you enjoy this article?

AddToAny

Top