In July, the Government launched a consultation on the LGRR. As it stands, London local authorities could see the way that they are funded change considerably. Many local authorities will be able to take advantage of the opportunities created and will be financially rewarded for supporting new development and business expansion. New revenues may be generated and used to fund infrastructure that enables the capital to continue to grow. Inevitably, just as some local authorities may benefit from the system, some that do well financially under the current arrangements may not see the growth they’ve seen in the past. The LGRR also opens up the opportunity for London local authorities to work together in a pan-London business rates pool.
This research note sets out how the LGRR will impact on London local authorities, drawing on Centre for Cities’ recent report Room for Improvement. It considers how London local authority’s business rates revenues have grown over the past decade, the role of pooling in the London context, how the reforms could be introduced and the implications of the LGRR consultation.
We would like to thank Future of London for their involvement in this research.
Senior Consultant, City Economics at Arup