Commons Reinstates Local Levy To Cbi Dismay

[cashinmattress]

Commons reinstates local levy to CBI dismay

Business leaders have reacted with dismay after MPs amended a Bill to make it easier for councils to impose extra taxes on local firms.

The House of Lords had inserted a set of industry-friendly measures to the Business Rate Supplements Bill, but on June 17 the Commons reversed these.

The Bill, expected to become law later this month, gives top-tier local authorities the power to impose an additional 2p levy on business, to be spent on local transport and infrastructure projects.

The CBI, which represents UK business, had welcomed the Lords’ amendments, which would have given firms the final say on whether a project should receive BRS funding.

But the Bill as it now stands would allow businesses to have a say only on schemes for which more than a third of funding came from BRS.

CBI deputy director general John Cridland said: ‘The rejection of these amendments pokes a finger in the eye of British business at a difficult time.’ The changes ‘would have helped avoid unnecessary, misguided tax supplements that could lead to further job losses’.

However, the Local Government Association said it was not in councils’ interests to make life difficult for business. A spokesman told Public Finance: ‘The last thing councils would want to do at a time like this is clobber businesses with more taxes. Councils wouldn’t want to railroad something through if business wouldn’t be happy with it.’

Reminiscent of our long dead King John... Yep, the Baron's were not the least bit interested in levying huge taxes against their constituents....

Stupid spineless government once again fvcking over the nation's lifeblood.

[Zzzzzzzzzzzzzzzzzzzzzzzzzz]

Who exactly does the CBI represent? Not my firm! Nor thousands of others. They're a bunch of unrepentant Thatcherites well past their sell-by-date.

Edited June 26, 2009 by gruffydd

[RufflesTheGuineaPig]

I assume infrastructure projects include street lighting maintenance and road repairs.

Stuff previously funded from council tax.

[abharrisson]

This is a cop out, its all about shifting tax raising to localities while keeping national taxes high... the result... we get taxed more in total and national governement wastes it while the local government carries the can.

[@contradevian]

The CBI was the bosses counterpart to the TUC.

Takes me back to "tripartheid talks" held frequently at Number 10 over "beer and sandwiches" to solve some ridiculous industrial crisis.

[MRMX9]

This is all a bit of a red herring. This tax power will only be used once - by the Mayor of London to fund his £3.5bn contribution towards Crossrail. No one else will have the power to introduce this tax until 2012 and the Tories want to abolish it (except for Boris's levy) so they will never get the chance.

All done to fund Crossrail - which the CBI supports. A rail link which is badly needed and will benefit business. In the end someone has to pay for it!