Extra business rates could be as little as £4bn

Despite George Osborne's claim that local government would receive an additional £13bn funding as part of the move to full business rates retention, officials have reportedly confirmed that the actual income could be anything from £4bn to £13bn.

The Local Government Chronicle (LGC) reports that the figure was revealed by the Department for Communities and Local Government at the latest meeting of the steering group set up to oversee the development of the new business rates system.

CIPFA’s Sean Nolan told LGC there was a discussion to be had about whether existing unfunded pressures should be funded out of the amount available.   

• LGC – Extra Business Rates Cash Could Be as Little as £4bn