Potential Threat to Brent Council Tax Revenues

Stories about the widespread failure of high street shops have become commonplace with a services of prominent chains getting into trouble.  BHS, HMV and Patisserie Valerie are all recent examples.  There is an important consequence for local government taxation if this becomes commonplace. 

In Brent, business rates should bring in £122.5 million  this year (2018-19), which is more than the Council Tax (£115 million).  If the number of businesses paying in goes down, there is a danger of a further reduction in Brent Council's income on top of all the other problems local government faces.  Fortunately, Brent Council has limited its exposure to this by joining the London wide pool arrangements, which effectively spreads the risk.