Camden Council expect to make an extra £16 million in council rates in the next financial year.

Camden Borough Council expects to take home £16 million in business rates in 2018/19 compared to the current financial year. This is according to a council report discussed on Wednesday. 

The report also explained that Camden Borough Council can expect to keep hold of around £140 million from its business rates across the year.

Hackney Council reported a similar estimate last night, saying that they expect the new pilot scheme to bring a great deal more money to the Council’s budget.

The increase in “take home” money for London borough councils is due to a pilot scheme that will change the way money earned through business rates is distributed.

In the current setup, the Greater London Authority receives 37% of all business rate earnings, whilst central government receives a 33% share. The remaining 30% is retained by borough councils in London.

From April 2018, all 34 councils in the Greater London area will pool 100% of their business rate money. This will then be shared between the local councils and the Greater London authority, without any money going to central government.

Speaking in December, Communities Secretary Sajid Javid described the pilot plans as part of a “historic 4-year funding settlement” giving local councils “the certainty to plan ahead”.  

But the Ministry for Housing, Communities and Local Government have since turned down any opportunity to spread the 100% retention rate across the country.

From 2020 councils will retain 75% of their business rate earnings, with central government taking a 25% cut. 

London news