Business rate changes

[rabbit]

It will be of some interest how these changes will affect our council`s fortunes and planning for the years ahead.

https://www.gov.uk/a-plain-english-guide-to-business-rates-retention

[steveL]

I've never been convinced that local councils have any real role to play in attracting businesses. Companies will come to Hartlepool when it benefits them to do so. At present, the default is for most companies to locate within the South East/ South Midlands area - what used to be called 'the coffin' because of the area's shape.

It's a catch 22 situation really: companies locate in 'the coffin' area because that's where the bulk of the population is which helps keep logistics costs low; and the population is there because that's where the companies/jobs traditionally are located.

The only reason large scale manufacturing jobs where here in the past was because this is where the coal and (originally) the iron ore was. Everything stemmed form this: the mining industry, the ship building industry and the steel industry and then the services and off-shoot industries. When those three industries went, the foundations of the whole region were undermined.

Local Authorities like ours just don't have the financial clout to produce meaningful incentives that would tempt companies to their area. This can only be really done by national Government and different Governments have already done pretty much all they could do within the limits of the thinking that has prevailed for the past 50 years.

We have a good road system, though not perfect, in the North East, but the public transport systems outside of Newcastle are disgraceful. Meanwhile, much of the jobs growth has been in public sector jobs while manufacturing has been decimated.

Where is the jobs growth now? Part-time Supermarket and Retail jobs - even the Call Centre bubble has now well and truly burst.

Manufacturing companies are concerned with costs, the availablility of skilled labour and the availability and costs of materials. Costs, probably with the exception of labour, are higher in areas like hours because of the logistics involved. At the same time, long-term high unemployment, a poor and under-ambitious education system and cultural apathy have produced a low skilled workforce.

My own view, for what it's worth, is that councils like ours can't do much to change things; it needs a Government plan to do this and I would suggest the following:

• A region based drop in Corporation Tax to around 10% to overcome the additional logistical costs for any company setting up in the area
• Major investment in the public transport system extending the Tyneside Metro, station by station, to Rhyope, Seaham, Easington, Horden, Blackhall and Hartlepool and eventually onto Middlesbrough
• Similar investment in Schools, Colleges and Universities and especially FE Colleges like our own
  

It needs a change of thinking by national Government and it will take money but they can start by using the money given to Quango's like Tees Valley Unlimited.

Areas like ours need jobs NOT PowerPoint presentations.

[rabbit]

Yes,,,,,,, The government`s idea is for councils to benefit from a portion of the rates if a new business comes to the town. However, a proportion of rates will also be lost if a business leaves the town.

The government says that councils will not lose out because the business rates from other councils will provide a buffer to help out in such cases. If so, this is similar to the position today, so I cannot see any great reason for a change.

[not4me]

yes but that transitional help only lasts for 7 years - then we're f**c***.

[Vincent]

The nuclear power station provides 15% of the business rates collected by HBC but only when it is producing power (wonder who agreed that)
The plant is well over its expected life and eventually the off switch will be operated for the last time and the income HBC get will drop like a stone - what then, stiff all the remaining businesses?
Even if, and its a big if, there is another nuclear plant built, it will take years to build and start producing power.