By Max Clarke
Local authorities should be able to retain some of the tax they raise from businesses, so that they are encouraged to support and stimulate growth, the CBI said today in response to a ministerial statement on the Local Government Resource Review.
“The CBI supports moves to allow local authorities to retain more of the tax they raise from businesses, as this could be the best incentive they have to be more pro-growth and supportive of businesses’ role in the local economy,” said Katja Hall, CBI Chief Policy Director.
“It’s good to see that the Government has kept the needs of businesses and the economy at the front of its mind in its review of business rates. After all, rates are the third largest tax that a business will pay, and it’s the Government’s aim to have the most competitive tax system in the G20 by 2015.
“We are happy to see the uniform business rate retained, as the aim of driving growth through business rates would have been undermined if the Government had chosen to move away from this.
“Retaining the uniform business rate means that business rates remain predictable so that firms can invest with confidence and aren’t hit by unexpected tax hikes.”
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