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Councils to keep business rates in their own areas

Comment 6th July 2010

At the time that the poll tax was introduced, business rates were made uniform (a sensible move), but they are now collected centrally and shared out among councils by the government. The effect of this change is that in many areas, councils are hell bent on replacing businesses which do not generate income for the council with houses which do.

Why does this matter?

The effect of this is to make people commute longer distances when the jobs used to be on their doorsteps. It also penalises communities which are sited next to large factories as in the past they used to be compensated for the inconvenience in the form of income to their local authority. Finally, it makes councils much less business-friendly

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