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good rate of return?

13 January 2012

Following the second reading of the Local Government Finance Bill in the Commons opinions remain divided. While councils have been told that they will be able to keep certain parts of new business rates rather than give it all straight to central government, the amount that they will get to keep is not yet clear and some critics are saying that it will be at best trivial.

The amounts will be based on the actions that an authority has taken to boost business within its area and this will not always be an easy calculation to make, the proposed system being a complex one.

Mr Pickles has been quick to respond to criticism that the main benefits will lie in the south-east saying that certain authorities in the middle and north of the country could have been benefitting already if these provisions were in place.

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