The teasing prospect of business rates being retained locally is still to be clarified, while other income streams such as the New Homes Bonus (NHB) are also under consideration as part of the biggest shake-up in local government finance for a generation. But the reality is that councils would be best advised to plan their income on the basis of council tax and a modest sum from business rates as the platform for an affordable model. Anything else is jam. That's not to say councils are prepared to surrender the business rates retention commitment from government. The iiber-lean model described above will inevitably cause a very painful gap in the cost and provision of social care, which is the biggest cost pressure on upper tier councils. So, there's no doubt business rates are an essential component, both to pay for things such as care and to incentivise councils to boost their local economies.
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