Overman, Henry G. 
ORCID: 0000-0002-3525-7629
(2011)
Business rate retention: growth vs equity.
Spatial Economics Research Centre Blog
(19 Jul 2011).
Website.
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Abstract
The government has launched its consultation on allowing local authorities to retain business rates. The problem: Commercial development imposes costs on local authorities (to provide services to businesses) and to local homeowners, while the benefits are spread more widely. In other words, commercial development generates benefits for others (externalities) that are ignored when making decisions on whether to allow development. This means that local government will tend not to provide enough sites for businesses. The obvious solution (if you believe in decentralised decision making) is to allow local authorities to retain some of their business rates. This will provide better incentives. But these incentives come at a cost - some councils where the business base doesn't grow will be worse off than they would be under a system which redistributes all business rate growth.
| Item Type: | Online resource (Website) |
|---|---|
| Official URL: | http://spatial-economics.blogspot.co.uk/ |
| Additional Information: | © 2011 The Author(s) |
| Divisions: | Geography & Environment Spatial Economics Research Centre Centre for Economic Performance What Works Centre |
| Subjects: | H Social Sciences > HB Economic Theory H Social Sciences > HD Industries. Land use. Labor H Social Sciences > HF Commerce H Social Sciences > HT Communities. Classes. Races J Political Science > JC Political theory J Political Science > JN Political institutions (Europe) > JN101 Great Britain |
| Date Deposited: | 29 Jun 2017 13:38 |
| Last Modified: | 04 Oct 2023 23:32 |
| URI: | http://eprints.lse.ac.uk/id/eprint/82797 |
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