It is said that the record 23.5 billion is the highest income since business rates was first introduced back in the 1990s.
The government is set to scrap the central grant by 2020, so councils will be able to keep all business rates income, and will pocket £11.75 billion under the current rules the following year.
Local government minister marcus has said “Long term economic plans for british business is a roll future plans on handing out discounts to the amount of 3.2 billion which will help support charities, encourage entrepreneurs, help fill vacant shops, and for councils to do more incentives.”
“So by 2020 councils will have greater financial autonomy and be given more power to cut rates as much as they like to boost enterprise in their local areas and those that do give business a helping hand will reap the rewards – keeping 100% of the additional growth they generate.
“The (CIPFA) warned that the move towards 100% retention of business rates comes with “strings attached”.
Senior local government advisor Nolan, at CIPFA, said: “We support greater financial autonomy for councils. Funding councils from local business rates is a positive and important step, however, these long-term opportunities come with short-term challenges”.
“The Government needs to be clear this new money will come with strings attached. Councils will almost certainly get extra responsibilities when the scheme is launched in 2020, and in the meantime they are facing significant grant cuts elsewhere.”