[C]ouncil leaders have reacted with disappointment today following confirmation that Cumbria will not be one of the 10 Local Authority areas to be part of a new pilot scheme allowing local authorities to retain 100% of Business Rates in their area. The decision means council services in Cumbria will miss out on an additional £9.2m.
The county and district councils had worked together to make a competitive bid to be part of the scheme after a nationwide call from Government.
Currently the Government receives 50% of the money raised through Business Rates collected in Cumbria with the remaining 50% split between Cumbria County Council (10%) and the six district councils (40%). Some of the money sent to Government makes its way back to Cumbria in the form of grants. Being part of the new scheme would have meant the county retaining 100% of the money raised and being able to choose how and where that is spent.
Cllr Ian Stewart, Cabinet Member for Finance, said: “This is very disappointing news for the county. We had worked closely with our district council colleagues to make a strong case to government; one we felt clearly met the criteria they had set out. We will be seeking further feedback to understand why our bid was not accepted, and we note the reference to further announcements being made in the New Year. We will be making the case to government that Cumbria’s bid had very clear merits, and encouraging them to extend the number of areas involved in the pilot.”
