Business top-up tax 'bizarre', say bosses
Business leaders in Lancashire have branded government plans to press ahead with a controversial top up tax on companies as "bizarre".
They today warned that the proposals to allow Lancashire County Council to slap a 500 levy on firms could make the recession even more painful.
Ministers used the Queen's Speech to confirm plans to introduce a Supplementary Business Rates Bill which will hand councils the power to put a 2p levy on top of business rates.
The Government has said the levy would provide a "vital" economic tool for councils but stressed the authorities would have a legal duty to consult businesses first.
However, it has sparked widespread opposition from Lancashire's business chiefs.
They point out that businesses in Preston city centre have already voted in favour of a Business Improvement District (BID) to be financed by a 1% levy on the rateable value of their property and should not be made to pay twice.
Frank McKenna, chairman of Downtown Preston in Business said: "Businesses will relocate to areas that show a more business-friendly attitude.
"It is a bizarre thing to be doing at this time.
"There is no doubt that local authorities will utilise this.
"In Preston we have already had a 'yes' vote for the Business Improvement District, we have then got the potential of a congestion
charge in Manchester and we already pay business rates and then there are car parking fees as well."
Hugh Evans, director of policy at the North & Western Lancashire Chamber of Commerce, said: "The advantage of the BID is that the businesses themselves own, finance, and manage the projects delivered by the levy.
"We believe that this approach is fairer and more equitable than the proposal for a Supplementary Business Rate because it gives businesses control over how the money raised is to be spent.
"A Supplementary Business Rate must not be introduced in areas where BIDs are operational because businesses should not be asked to pay
twice."
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Weather for Preston
Wednesday 23 May 2012
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Temperature: 11 C to 18 C
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