Ministers are to be asked to take a final decision on how business rates growth should be split in two-tier areas after counties and districts failed to reach agreement, LGC understands.
A number of meetings have been held over the past couple of months to discuss how any growth should be shared when the proportion of business rates retained by local government increases from 50% to 75%. This is currently planned to happen in April 2020.
Under the current system, districts retain four fifths of the growth and counties receive the remainder. As LGC has previously reported, the County Councils Network had told the government the existing split should “not in any way be used as a baseline for establishing a national tier split”. However, the District Councils’ Network argued the split should only be altered on the additional 25% being retained by councils.
LGC understands both sides have moved from their starting positions but could not reach a final agreement on what the split should be.
In a joint statement, the county and district networks said: “Both CCN and DCN have taken part in extensive and detailed discussions on tier splits over the last two months.
“We have identified many points of agreement on principles around business rates retention and will now be writing to ministers setting out the outcome of our discussions and next steps”