Department for Communities and Local Government

• Local government
• Local government finance
• Local Government Resource Review

Local government

Local Government Resource Review

Under existing arrangements, non-domestic rates (or business rates) revenue collected by local authorities is pooled for redistribution to local authorities in England. So while local authorities have a vital role to play in supporting the local economy, there is limited direct fiscal incentive to do so.

On 18 July 2011, the Local Government Resource Review (Phase One) published for consultation its proposals to allow councils to retain their locally-raised business rates.

These proposals represent a fundamental shift in the way that local authorities are funded, freeing councils from dependence upon central Government grant and giving them a strong financial incentive to drive local economic growth.

On 19 August 2011, the Government published eight technical papers which provide more details of the Government's proposals.

The consultation on these documents closed on 24 October 2011.

On 19 December 2011, we published a summary of responses to this consultation and the government response to this consultation, which sets out how the business rates retention scheme will operate (see 'related publications' below).

The legislative framework required to introduce the business rates retention scheme is being taken forward within the Local Government Finance Bill (see link, top right), which was introduced on 19 December 2011.

The Second phase of the Local Government Resource Review: Terms of Reference was published 29 June 2011 and is available below under 'Related downloads'.

Further information is available through the links under 'On this site', top right.

Contact us

Any queries on the Local Government Resource Review should be sent to: ResourceReview@communities.gsi.gov.uk.

Related downloads

• Local Government Resource Review: Terms of Reference
  PDF, 26 kb, 2 pages
• Second phase of the Local Government Resource Review: Terms of Reference
  PDF, 43 kb

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Related publications

• Business rates retention scheme: The economic benefits of local business rates retention

  • Published: 17 May 2012
  • Site: Local government

• Business rates retention scheme: Pooling Prospectus

  • Published: 17 May 2012
  • Site: Local government

• Local Government Resource Review: Proposals for Business Rates Retention Consultation - Government Response

  • Published: 19 December 2011
  • Site: Local government

• Local Government Resource Review: Proposals for Business Rates Retention Consultation - Government Response Plain English Guide

  • Published: 19 December 2011
  • Site: Local government

• Local Government Resource Review: Proposals for Business Rates Retention Consultation - Summary of Responses

  • Published: 19 December 2011
  • Site: Local government
  • Status: Response

• Local Government Resource Review: Proposals for Business Rates Retention - Consultation

  • Published: 18 July 2011
  • Closing date: 24 October 2011
  • Site: Local government

• Local Government Resource Review: Proposals for Business Rates Retention - A Plain English Guide

  • Published: 18 July 2011
  • Site: Local government

• Local Government Resource Review: Proposals for Business Rates Retention: Technical papers - An overview

  • Published: 19 August 2011
  • Site: Local government

• Local Government Resource Review: Proposals for Business Rates Retention: Technical paper 1 - Establishing the baseline

  • Published: 19 August 2011
  • Site: Local government

• Local Government Resource Review: Proposals for Business Rates Retention: Technical paper 2 - Measuring business rates

  • Published: 19 August 2011
  • Site: Local government

• Local Government Resource Review: Proposals for Business Rates Retention: Technical paper 3 - Non-billing authorities

  • Published: 19 August 2011
  • Site: Local government

• Local Government Resource Review: Proposals for Business Rates Retention: Technical paper 4 - Business rates administration

  • Published: 19 August 2011
  • Site: Local government

• Local Government Resource Review: Proposals for Business Rates Retention: Technical paper 5 - Tariff, top up and levy options

  • Published: 19 August 2011
  • Site: Local government

• Local Government Resource Review: Proposals for Business Rates Retention: Technical paper 6 - Volatility

  • Published: 19 August 2011
  • Site: Local government

• Local Government Resource Review: Proposals for Business Rates Retention: Technical paper 7 - Revaluation and transition

  • Published: 19 August 2011
  • Site: Local government

• Local Government Resource Review: Proposals for Business Rates Retention: Technical paper 8 - Renewable energy

  • Published: 19 August 2011
  • Site: Local government

• Local Government Resource Review: Proposals for Business Rates Retention: Interactive calculator

  • Published: 19 August 2011
  • Site: Local government