Simon Danczuk urges government to 'free the entrepreneurial spirit in the regions'

Simon Danczuk MP

Rochdale MP Simon Danczuk has urged the Government to “free the entrepreneurial spirit in the regions” by giving more power to local councils.

Earlier this month, George Osborne announced plans to give local authorities in England the right to retain all the funds raised through business rates instead of handing the money to Westminster.

Mr Danczuk has argued the proposed scheme, which would give councils the power to cut business rates but not raise them, does not go far enough.

Writing in this week’s Municipal Journal, the trade magazine for councillors and local government staff, Mr Danczuk branded the plans “half-hearted”.

Instead, he argued that councils need the power to raise business rates and set varying levels within the local area.

The MP, who has regularly campaigned for business rates reform, said these extra powers would allow local councils to revive the high street, place a premium on large firms in out of town business parks and lift small businesses out of rates altogether.

Mr Danczuk said: “What is needed is a more sophisticated and nuanced approach which shows faith in the ability of local councils to shape their own future.

“If done right, changes to business rates could be the driving force behind major economic growth by setting free the entrepreneurial spirit in the regions.”

Mr Danczuk also called on the Government to ensure proper measures are in place to ensure struggling councils are not forced to drastically slash rates in a “race to the bottom”.

He said: “Without safeguards, there is a risk that already wealthy areas like Westminster and Richmond will become the municipal equivalent of Fortnum and Mason while struggling areas in the North are relegated to the status of Poundland.”