Home   Kent Business   County news   Article

Kent councils to pilot scheme where they keep money collected from business rates

By Caitlin Webb, local democracy reporter

Kent councils have announced plans to spend £35.8 million of money received from business rates as part of a retention pilot.

Kent County Council, Medway Council and 12 district and boroughs are among the first in the country to retain 75% of the tax collected on properties used for businesses.

The county is one of 10 chosen to take part in a national pilot to test out the possibility of local authorities taking the funds rather than central government.

Councils in Kent will be able to spend money collected through business rates
Councils in Kent will be able to spend money collected through business rates

This comes after the Government shared its intention to eventually hand all these funds over to all councils in the country.

However to do this areas must demonstrate how the retention can operate across more than one council and ensure they can manage the finances.

According to a KCC report: "The expectation is that some retained income from growth will be reinvested to encourage further growth across the area."

All the cash will be shared into a Financial Sustainability Fund and a Housing and Commercial Growth fund, which will be divided into areas and between local authorities.

KCC is expected to receive £10.5 million, Medway Council could collect £4m and a £10.5m will be shared between the boroughs and districts.

A further £10.7m will go towards supporting further growth as part of three clusters: west, east and north Kent.

How business rates money has been allocated in Kent (4041799)
How business rates money has been allocated in Kent (4041799)

Local authorities in east Kent plan to set up a housing and investment company with their £4.4m share.

Darford, Gravesham, Maidstone, Swale and Medway councils plan to spend £4.7m on a selection of projects including development of business space for start-ups and transport hubs.

Swale Borough Council spokesman Philip Sutcliffe said: "The business rate retention pilot gives us the ability to deliver proposals to boost commercial growth in the borough.

"The plans are still being finalised, and we’ll provide further updates once they are agreed.”

A two-year business support programme has been formulated in west Kent as part of a partnership between Sevenoaks, Tunbridge Wells and Tonbridge and Malling councils.

Plans include a scale-up project and a enterprise adviser network to help new business owners.

Remaining funds in west Kent will go towards town centre improvements.

Join the debate...
Comments |

Don't have an account? Please Register first!

The KM Group does not moderate comments. Please click here for our house rules.

People who post abusive comments about other users or those featured in articles will be banned.

Thank you. Your comment has been received and will appear on the site shortly.


Terms of Comments
We do not actively moderate, monitor or edit contributions to the reader comments but we may intervene and take such action as we think necessary, please click here for our house rules. If you have any concerns over the contents on our site, please either register those concerns using the report abuse button, contact us here, email multimediadesk@thekmgroup.co.uk or call 01634 227989.

Follow us

Like Us on Facebook

Most popular

Kent Travel News

Close This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies.Learn More