The British Property Federation (BPF) has called for greater devolution of finances and decision-making powers to cities and city regions, in order to attract better leaders into local Government and facilitate the sort of development that would encourage local growth.
The BPF also urged Government to consider wide-ranging business rates reform, including more frequent revaluations, and allowing local authorities to retain more of the local business rates income so that local communities saw more benefit from development in their areas.
Speaking at the Communities and Local Government Select Committee yesterday, BPF chief executive Liz Peace said: "Devolved financial power to local authorities would change the whole role of local Government, and thereby attract better local leaders.
"We have already seen that areas with strong local leadership experience better growth due to more planned and effective development – Manchester is a prime example of how good leadership invites productive discussions about local investment and development. Devolved authority also improves local democracy, transforming and strengthening the relationship between people and local Government.
“Another issue that urgently needs addressing is our chaotic business rates system. Current rates are based on values just prior to the recession, and central Government's decision to postpone revaluation until 2017 continues to blight businesses and inhibit growth. There is no reason, with modern technology, why we shouldn't be able to move to far more frequent revaluation of property and business rates.
“Greater devolution of the collection of business rates would incentivise local authorities to seek opportunities for local development, but proposals so far have been fiendishly complicated. The property industry would like to see local authorities being able to borrow against future business rates streams to invest in local infrastructure, creating more attractive development opportunities. Tax Increment Financing initiatives have been hugely beneficial where used and should be rolled out far more widely.”
