|New Proposals to Deliver £1 Billion to Local Government|
4 July 2003
New measures were announced jointly by the Deputy Prime Minister, John Prescott, and the Chancellor, Gordon Brown today that aims to give local government a £1 billion boost.
A consultation paper on the new Local Authority Business Growth Scheme was announced at the Local Government Association (LGA) Conference in Harrogate.
The scheme is intended to deliver the benefit to councils that stimulate business in their area. In return for improved economic growth, local authorities will be allowed to retain money from business rates.
In his speech to the LGA conference, Gordon Brown said: "Based on historical data, we estimate that, as a result of this measure, local authorities could gain up to £1 billion over the next three years."
Intereted parties are invited to respond to the proposals by October this year, with the scheme expected to begin in April 2005.
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