Britain’s cities, particularly their transport systems, could be vastly improved if Supplementary Business Rates (SBRs) were introduced, an urban research group has claimed.
Although the recent proposals to introduce SBRs by the Communities and Local Government Committee have been largely unpopular with businesses, a report published today by Centre for Cities said that the scheme could raise £10bn in new resources for transport and infrastructure over 30 years.
Supplementary business rates (SBRs) would give local authorities the power to levy an additional supplement (5-10%) on the national business rate within their area, agreed by the local council.
In particular, the Centre for Cities report found that SBRs could have a significant impact in the capital, with a 4p supplement generating over £400m a year.
Dermot Finch, director of Centre for Cities, said: “Supplementary Business Rates have the potential to allow cities to invest over £10bn in their transport systems and other infrastructure assuming an SBR is in place over 30 years.
“They would also give businesses greater input into local decision-making. Government and local councils need to work with businesses to reach a consensus on how SBRs would work in practice.”
However, earlier this month the British Chambers of Commerce (BCC) criticised the proposals, arguing that businesses should have the right to vote for whether or not such a scheme is introduced.
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