Yahoo Finance George Osborne: 'We Are The Builders'
The Chancellor has announced a radical devolution of business rates to local councils as the centrepiece of his speech to Conservative Party Conference in Manchester.
The uniform business rate set in Whitehall will be scrapped, and local councils will take control of the setting of the controversial levy.
Business rates reform has been a long battle for small businesses and retailers. Rates are charged regardless of whether a business is profitable or not, unlike corporation tax.
During the financial crisis, many thousands businesses were ultimately pushed into bankruptcy because of business rates bills.
In theory councils could now compete with lower rates to attract business, or fund better council services with higher rates.
It (Other OTC: ITGL - news) is an agenda which will match the devolution of powers over welfare, business support and the NHS to localities such as Greater Manchester.
Mr Osborne said: "In my view, proud cities and counties should not be forced to come to national government with a begging bowl.
"So I am announcing this: Today I am embarking on the biggest transfer of power to our local government in living memory.
"We're going to allow local government to keep the rates they collect from business.
"That's right, all £26bn of business rates will be kept by councils instead of being sent up to Whitehall.
"Right now, we collect much more in business rates than we give back in the main grant.
"So we will phase out this local government grant altogether.
"But we will also give councils extra power and responsibilities for running their communities.
"The established transfers will be there on day one, but thereafter, all the real growth in revenue will be yours to keep.
"So this is what our plan means.
"Attract a business, and you attract more money.
"Regenerate a high street, and you'll reap the benefits.
"Grow your area, and you'll grow your revenue too.
"And to help local people do that I want to make another announcement today.
"We're going to abolish the uniform business rate entirely.
"That's the single, national tax rate we impose on every council.
"Any local area will be able to cut business rates as much as they like…
…to win new jobs and generate wealth.
"It's up to them to judge whether they can afford it."
In his speech to activists at his party's conference in Manchester, he said the Conservatives were "the builders".
He also vowed the Government would "go on fixing the roof while the sun is shining".
"Labour are the wreckers, we are the builders," Mr Osborne said.
In a sideswipe at the Labour leadership he said: "Now (NYSE: DNOW - news) we're told that instead of earning the money we need to spend, the Bank of England can simply be told to print it.
"What could be easier than that?
"They said in Zimbabwe and Weimar Germany too.
"It's not monetarism - it's magic money-tree-ism.
"And let me tell you messing around with the independence of the Bank of England and letting inflation rip destroys savings and is a massive risk to the economic security of every working family.
"Mind you, I'd better be careful not to disagree with Jeremy Corbyn about absolutely everything or else he'll invite me to join his Shadow Cabinet."
The Chancellor also pledged to renew the UK's nuclear deterrent and spend 2% of national income on defence.
Committing to the living wage, he said: "Britain deserves a pay rise and with us, Britain is getting a pay rise.
"It's this Conservative Government that is introduced the living working wage - building the society we promised, where we are all in this together."
On the so-called northern powerhouse aimed at rebalancing he economy, he said: "I'm throwing everything I have got at it.
"I don't know if it will work.
"But I do know that if you don't even try you're bound to fail.
"So I'm damn well going to try.
"Let's go and build that Northern Powerhouse."
