Communities and Local Government Committee

Business rates retention inquiry

Inquiry status: open

The deadline for written submissions was 14 December 2017. If you would like to send a submission please contact Committee staff.

Scope of the inquiry

The inquiry follows on from, and seeks to complete, an initial inquiry by the previous Committee on 100% business rate retention which also explored which responsibilities councils could take on in return for the increase in revenue. It made various recommendations in its interim report about how 100% business rate revenue should be implemented.

The new funding system was originally due to be implemented in 2019-20, with the Revenue Support Grant (RSG) phased out and councils taking on new responsibilities in return for the increase in their business rate revenue.

However the Local Government Finance Bill, which contained provision for 100% retention, fell when Parliament was dissolved for the General Election. It was not revived in the Queen’s Speech but the Government has confirmed it is still committed to the reforms.

The new inquiry will assess the implications of the extended implementation period and how it is affecting councils’ financial planning.

It will also examine the consequences of implementing the Fair Funding Review - the Government’s review into needs and redistribution – in 2020-21.

Terms of reference: Business rates retention inquiry

Latest evidence

  • 05 Feb 2018 - Business rate retention - oral evidence | PDF version (PDF310 KB) HC 552 | Published 06 Feb 2018

    Evidence given by Councillor David Simmonds CBE, Vice Chairman, Local Government Association, Councillor Paul Carter, Chair, County Councils Network, Sheila Little, President, Society of County Treasurers, and Rob Whiteman, Chief Executive, CIPFA; Guy Ware, Director, Finance, Performance and Procurement, London Councils, Councillor David Finch, Leader, Essex County Council, Councillor John Fuller, Chairman, District Councils Network, and Janice Gotts, Deputy City Treasurer, Manchester City Council (at 5.00pm).

    Watch this evidence session

Next meeting(s)

There are currently no public meetings scheduled.

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