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- Further £300m for Local Business Growth
Further £300m for Local Business Growth
| Published | 2 April 2008 |
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Local Government Minister John Healey has announced the allocation of almost £300m of funding for councils today, rewarding their efforts to boost business growth.
The Local Authority Business Growth Incentives scheme (LABGI) delivers financial rewards directly to councils that promote economic growth in their areas, by allowing them to retain a share of increases in revenue derived from business rates. The money is not ring-fenced and is additional to the funding provided through the Local Government Finance settlement for core services. Today's announcement allocates a further share of the up to £1bn of funding available for LABGI in England and Wales.
Councils have made substantial progress in encouraging new business growth. This means authorities will receive nearly £300m of increased funding though this allocation - with potentially a further £100m in the future, which is being retained as contingency.
John Healey said:
"LABGI ensures that every council has a direct financial incentive to promote enterprise, jobs and local business growth, helping them to boost our country's economic potential.
"This £300m is a welcome reward for the hard work they have put into generating prosperity in their areas, and an incentive to continue that strong progress in future.
"This is the final year of the 3-year LABGI scheme and my priority now is reform, with the aim of making it a permanent feature of the council funding system. I plan to publish proposals for consultation later this year"
Notes to editors:
1. Provisional allocations of the payments announced today are available here: http://www.local.communities.gov.uk/finance/labgi/draftdtmn0708v2.pdf (external link)
2. The funding includes an additional £50.9m for years 1 and 2 (2005/07) and provisional allocations of £246.1m for year 3 (2007/08).
3. Councils have until 16 May 2008 to make representations. We intend to announce the final allocations as soon as possible thereafter.
4. Additional payments for Years 1 and 2 take account of all Valuation Office Agency change codes which record an increase in rateable value. This methodology is replicated in Year 3.
5. Over £535m has already been allocated under the LABGI scheme since it started in 2005-06.
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