Metrolink funding through business rates?

Local top-ups on business rates could help fund Rochdale’s Metrolink expansion, a new report has said.

The Centre for Cities organisation says supplementary business rates (SBRs) would raise more than £10 billion nationwide over a 30-year period.

SBRs were supported by Sir Michael Lyons in his report into local government earlier this year and they have also been backed by the House of Commons communities and local government committee.

Centre for Cities director Dermot Finch said: “SBRs have the potential to allow cities to invest over £10 billion in their transport systems and other infrastructure, assuming an SBR is in place over 30 years.

“They would also give businesses greater input into local decision–making.

A Treasury spokesperson said: “A supplementary business rate offers real potential to support authorities, business and their wider communities by creating additional funding to support economic development.

“We have said that the Government will consider options for supplementary business rates, working with local government, business and other stakeholders.

“It is too early in this process to be talking about what the final proposals will be. The Government will report back before the end of the year.”

David Frost, director general of the British Chambers of Commerce, said: “It cannot be right that SBRs could be arbitrarily imposed by councils.

“There must be a business vote.”