Partner Article

Rates shake up good for local economy

A shake up of business rates this autumn could be the key to unlocking investment for North East businesses, according to Sanderson Weatherall LLP.

The old system whereby rates were absorbed and redistributed by central government is being replaced with a localised scheme giving local authorities responsibility for their own finances.

Councils will also be given the opportunity to borrow a certain percentage against the potential revenue stream generated from rates to invest in infrastructure projects.

This plan is hoped to strengthen the relationship between the public and private sectors by encouraging growth. No local authority will be worse off under the scheme, but in order to ensure its success, they must work closely with the local business community.

Partner for Rating at Sanderson Weatherall LLP Richard Farr said: “I’m very encouraged by the plans which will link the finance of the North East with its economic pace.

“This could prove to be just the tonic needed as the region waves goodbye to One North East and looks for new ways to bring in regional revenue. There are a lot of benefits that make the region competitive compared to the rest of the UK, from pieces of land ideal for big industry, to cheaper overheads and a large catchment of skilled workers.”

However, he did warn against flooding areas with an excess of properties, which have high rates, such as retail developments and to resist the urge to chase companies for rates.

“If we listen to the needs of those who are investing in the region, we can generate financial growth,” he added.

This was posted in Bdaily's Members' News section by Ruth Mitchell .