Cheshire East chosen to pilot business rate scheme

Potentially great news for Cheshire East Council and the county’s businesses and residents, Cheshire East have been told they can collect and keep 100 per cent of business rates paid by local shops and restaurants, Chancellor George Osborne has revealed.

Along with three other regions – Cambridgeshire, Peterborough and Greater Manchester, Cheshire East will start receiving all the rates paid in their areas from April in a trial that could be rolled out across the country.

Councils currently receive around half of the business rates bill collected in their area with the rest going to central Government in a rule introduced two years ago.

The idea is to encourage councils to help local businesses thrive and benefit from the increased rates collected.

However experts warned while the new rules are welcomed, ministers must make sure local authorities do not abuse their positions.

Business rates have shot up the political agenda in recent months with businesses, especially in retail, demanding a major overhaul of the system which sees high street stores pay far more money than online rivals.

Businesses have also pointed out that the bill is based on outdated valuations of their premises from 2008, with those in poorer areas seeing rents fall but rates bills remain artificially high.

Earlier this week the Government reaffirmed plans for a major review into the system after the election, although critics have pointed out that the issues have been raised with them for at least two years.