Today the Institute for Fiscal Studies published a technical report entitled: Spending needs tax revenue capacity and the business rate retention scheme. The report assesses the likely impacts of Westminster Government’s move towards 100% retention of business rates in England. The findings questions some of the core policy assumptions underpinning the case for 100% retention. It also identifies the critical importance of mechanisms like safety nets and examines the particular issues for traditional two-tier shire arrangements.
Although not specifically a tourism report, the relationship between destination based tourism and the availability of local public funding and the associated quality of local services and especially of the quality of place should not be ignored. Additionally, 100% business rate retention has recently been muted as a potential tool to support tourism within designated areas,
The executive summary page 5 to 7 contains sufficient information for the majority of destination managers; the full report will be of interest to those working in finance and those responsible for strategic direction within Councils. It may be worth drawing colleagues working in these areas attention to the report: