Proposals will let local authorities keep business rates

Thursday, November 12, 2009

Michael Portillo outlines Conservative policy regarding business rates.

By Ashley Brunskill

Local authorities would be allowed to keep all of the business rates that were generated from new developments under the Conservatives, it has been reported.

The former Conservative cabinet minister turned television personality, Michael Portillo, outlined the policy suggesting that it could help businesses that are struglling in the economic crisis.

Mr Portillo used the example of the new shops at the Liverpool One centre, which have produced an extra £21.5 million a year in business rates for the city.

However, he also criticised the planning and development of some city centre shopping centres, comparing them to prisons and describing them as "souless".

Mr Portillo had earlier predicted a gloomy outlook for the economy in the coming year.

It has recently been widely reported that businesses across the country were feeling the pressure of proposed business rates increases that many had suggested could force them into commercial relocation or, in the worst cases, out of business.

Source: ask-re The Property People LLP