27 February 2009
By David Williams
The government is considering allowing councils to invest billions of pounds in local communities under a range of measures proposed by the Local Government Association.
A delegation of ministers headed by Communities Secretary Hazel Blears met leading councillors on February 24 to discuss a ten-point plan the LGA hopes will place councils at the heart of efforts to revive the economy.
The proposals include an overhaul of business taxes to automatically give small businesses £100m in rate relief funds that currently go unclaimed. Small businesses could also be helped by temporarily raising the rateable value threshold or increasing rate relief, LGA vice-chair Sir Jeremy Beecham told Public Finance. ‘Small, independent shops such as newsagents and hairdressers are the lifeblood of the British economy and everything must be done to help them through these difficult economic times,’ he said.
Beecham added that the meeting with ministers was ‘productive’ and the government recognised that councils had a ‘significant role to play’ in combating the recession. Government officials were now working on the package and would report back in four weeks, he added.
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