Business Rates

The Con Dem government is contemplating chnaging the way Business Rate (Non Domestic Rates) are distributed.  This post accurately describes some of the problems involved. Allowing each authority to keep their own rates would massively benefit, say, Westminister.  It would also beenefit any area where new businesses were setting up (East London?), but as local authroties have such little control over where businesses operate I doubt whether it would do much to improve growth. 

What it would do is incentivise the collection of business rates. As local authorities don't keep whatever they collect, they currently have no incentive to maximise collection.  That is quite a contrast with the Council Tax, where local authorities work hard to increase collection so that they can get their hands on the revenue.