Those pressing for business to pay a greater share of local government funding should accept the reality about the business tax burden. Companies not only contribute£15.6bn a year through business rates, but also help fund central government grant to councils through other taxation.
While, locally, council tax has risen sharply, at the national level business has borne the brunt of the government's tax increases. Between 1997 and 2004, tax changes introduced at the national level have raised£40bn extra from business.
Councils must also face up to the challenge of improving efficiency. The emphasis must be on delivering better value for money for all taxpayers - whether individuals or business. The Confederation of British Industry estimates councils could achieve efficiency savings of£3bn a year - surely this should be progressed first?
But merely imposing additional
taxation will not ultimately be in anyone's interests.
Head of infrastructure,
Confederation of British Industry