New Bill to bolster council powers 'to help small businesses' » Local Government » 24dash.com

The Government today introduced and published in Parliament a Bill which will provide new scope for councils and businesses to work together to invest in the long-term economic prosperity of their local communities.

While many communities are feeling the effects of the economic downturn, these are powers for the future to enable local authorities in partnership with local businesses to invest in growth during the economic recovery

The Business Rate Supplements Bill gives county and unitary councils in England, and the Greater London Authority, new powers to raise and retain funds for economic development projects in their area. This funding power could provide a real boost to jobs, infrastructure and local development.

The Bill also gives the business community a key role in decisions , with councils having a duty to consult local businesses on the use of the new power - and where the BRS will fund more than a third of any one project, they will be given the opportunity to vote. Smaller businesses will not be expected to pay the supplement.

The legislation follows last week's Sub-National Review of Economic Development and Regeneration (SNR), which confirmed Government plans to introduce these new powers.

Local Government Minister John Healey said: "Councils and businesses alike are working hard to weather this difficult  economic climate, but neither should lose sight of the opportunities that the  economic recovery will bring.

"The Business Rate Supplements Bill will give councils the power to work with local businesses on economic development projects that will improve their local area, boost job opportunities and further increase confidence in the local  economy.

"This is part of our wider commitment to give councils the powers to play a stronger role in supporting economic development and growth.

"The Business Rate Supplement is a power, not a duty. It will not be applied  in every area every time - but it will be an important new tool as councils look  to maximise economic development and growth for local residents and  businesses."

Exchequer Secretary to the Treasury, Angela Eagle MP said "The Government recognises the current pressures on businesses and communities across the UK. It is vital at this time that Councils and local  businesses can engage with each other to work towards economic development in their area.

"The Business Rate Supplements Bill will provide local councils with new  powers, which together with local businesses, can be used to ensure local economies can thrive."