news story

15th February 2006

"Give Us back Our business Rates" Say Campaigners

A new campaign has been launched by South Gloucestershire Liberal Democrats following the revelation that since Labour came to power in 1997, over £42 million pounds has been siphoned away from South Gloucestershire businesses to be spent elsewhere in the country.

According to a Parliamentary written answer obtained by Steve Webb MP, over the period 1997-98 to 2004-05, local businesses paid a total of £569 million in business rates which were passed on to central government, but South Gloucestershire only received back £527 million as its share of the national proceed from business rates. This is a total shortfall of £42 million over the eight year period, or an average of over £5 million per year.

Now local MP Steve Webb has pledged to work with his Liberal Democrat colleagues on South Gloucestershire Council, as part of their "Standing up for South Gloucestershire" campaign, to demand that the Council be allowed to keep its own business rate revenue.

Commenting on the figures, Steve Webb said:

"Funding rules are hitting not only local residents but also local businesses. South Gloucestershire firms have had to make a massive financial contribution over the last eight years to pay for council services elsewhere in the country - a kind of "South Gloucestershire tax".

"Yet here in our area we are desperately short of funds for things like decent public transport, school buildings and social services. It is time to stand up for South Gloucestershire and demand our own money back".

Note to editors:

Click here to read the figures, given in a written reply by Local Government minister Phil Woolas to Northavon MP Steve Webb.

NB - a negative number means the Council got back more money than it paid out - this was true in 1997-98, but has not been true ever since.