Chancellor George Osborne has outlined plans to devolve further powers to local authorities, including the ability to keep all the revenue raised by business rates in today’s autumn statement and spending review
Osborne said the move to encourage metropolitan areas to have elected mayors in return for new powers including greater control of the local economy, will continue. He also announced the creation of 26 enterprise zones, 15 of which will be in rural areas ‘from Carlisle to Dorset’.
Local councils who agree to an elected mayor will be able to keep all the revenue raised through business rates by the end of this Parliament. Councils will also be given powers to cut rates in order to attract businesses, provide the funds raised are used for specific infrastructure projects agreed with the local business community.
As a result of this, the local authority government grant will be phased out.
