New business taxes coming ...

[AtW]

When the central government grant to councils is reduced and councils attract businesses by giving vastly reduced (or zero) business rates, how does that equate to higher revenue for councils ?

In the best case scenario Gideon will cut grant to councils exactly inline with business rates raised in the same area. He'll cut more for sure, but likely to be at least pro rata to business rates raised.

So, how could possibly councils reduce rates in the area to increase income??? Local businesses could move premises if they only cut tax in empty shops.

The tax will only go up, and by a very large number because it's pretty well collectable - I reckon in 5 years we'll see at least £10 bln more raised via business rates.

Coming soon from the pro-business party that loves you.

HTH

[diseasex]

In the best case scenario Gideon will cut grant to councils exactly inline with business rates raised in the same area. He'll cut more for sure, but likely to be at least pro rata to business rates raised.

So, how could possibly councils reduce rates in the area to increase income??? Local businesses could move premises if they only cut tax in empty shops.

The tax will only go up, and by a very large number because it's pretty well collectable - I reckon in 5 years we'll see at least £10 bln more raised via business rates.

Coming soon from the pro-business party that loves you.

HTH

well that seems like a speculation. we dont know the numbers behind this, but what i do not understand is if councils will have the power to set CT, how will that be in line with the promise that CT will be reduced to 18% ?

[AtW]

well that seems like a speculation. we dont know the numbers behind this, but what i do not understand is if councils will have the power to set CT, how will that be in line with the promise that CT will be reduced to 18% ?

The number that is known - £26 bln per year in business rates.

We also know that no Chancellor would reduce block grant by LESS than given away business rates, most certainly by MORE as otherwise there is no point for them to give money away.

Councils won't get right to vary Corporation Tax, only business rates.

Chances are they might start crackdown on homeworking to get more money, there is direct incentive now for them.

30% growth in rates over next 5 years is almost certain.

[TestMangler]

well that seems like a speculation. we dont know the numbers behind this, but what i do not understand is if councils will have the power to set CT, how will that be in line with the promise that CT will be reduced to 18% ?

I think you're getting your business rates and your corporation tax confused

[AtW]

I think you're getting your business rates and your corporation tax confused

Business rates tax, income tax, capital gains tax, employer NICs tax, employee NICs tax, stamp duty tax, vehicle excise duty tax, Value Added (LOL) Tax, beer duty ...

[RetSet]

Well, if I was in charge of a local council...

• Get list of all empty commercial propert
• Contact property owners
• Offer to cut business rates on vacant property by the same percentage as property owner cuts rent
• Incoming tenans save on both business rates and rent

Win for council - extra income

Win for property owner - tenant in place and cashflowing

Win for new business - lower overheads, and a chance to get established and grow.

Sheesh! I'm wasted in IT

[AtW]

Well, if I was in charge of a local council...

• Get list of all empty commercial propert
• Contact property owners
• Offer to cut business rates on vacant property by the same percentage as property owner cuts rent
• Incoming tenans save on both business rates and rent

Win for council - extra income

No, you'll just get local companies move from other property owners to new place.

That assumes that the whole thing isn't controlled by a handful of large property owners who would not want to cut rent even if the building is empty.

Business rates will just increase and that's that - and if you don't pay up then there is always local magistrates court that will quickly make decision.

Councils should not be trusted with any taxation, including council tax.

[MicrosoftBob]

Sounds good...

What's the downsides???

The small biting creatures and the midges

[NotAllThere]

Maybe Labour controlled councils will have less money to spend under this proposal (depending how the current subsidy works)- they'll have to make cuts or raise taxes which will make Labour look bad and therefore increase the Tory vote at the next election.

[darmstadt]

Maybe Labour controlled councils will have less money to spend under this proposal (depending how the current subsidy works)- they'll have to make cuts or raise taxes which will make Labour look bad and therefore increase the Tory vote at the next election.

And possibly this:

Boundary changes

The Conservatives signalled immediately after their victory that they intended to pursue the boundary changes vetoed by the Lib Dems in 2013. Their plan to base the new constituencies on electoral registration, rather than population, means that Labour would be hit hardest. As the Electoral Reform Society has noted: "Under the current proposals urban and socially deprived areas where registration is low [and Labour usually wins] are likely to have fewer MPs per person than affluent areas where registration is high." Modelling suggests that the Tories' current majority of 12 would rise as high as 50 under the new boundaries.

Maybe even this, although many of the UK migrants to other countries that I have met would not vote Tory although I've never met any on the Costa del Retired who probably would though:

Allowing expatriates to vote for life

A new Votes for Life Bill will abolish the current 15-year limit on UK expatriates voting in general elections. The Tories have presented the move as merely ending an "unfair" rule but there are political calculations at work. No age group is more likely to vote Conservative than the over-65s, who account for a disproportionate share of expatriates. The Tories finished 24 points ahead among pensioners at the election, 78 per cent of whom turned out. The extension of the franchise to the 3.3m expatriates who have lived outside of the UK for more than 15 years will give them an additional advantage over Labour.

Boundary Changes