04/12/2008 - Businesses condemn Supplement Bill
The Government plans to impose an additional supplement of up to 2p on the national business rate despite facing tough criticism from the corporate sector.
The Business Rates Supplement Bill will allow councils to charge the extra money to help boost the economy in their area, most notably it is believed the London Crossrail railway link will be funded by the supplement.
The measures recommended by the Lyons Report are said to be a "vital tool for councils to promote long-term economic growth, working with local businesses and the local community".
But the Institute of Directors has warned that the additional costs will place another burden on firms which are already hard pressed in the current economic downturn.
IoD director general Miles Templeman said: "We deplore the decision to press ahead with business rate supplements in their current form.
"The IoD recognise that the Crossrail project is dependent on funding from business rate supplements and support this single use.
"Any benefits from projects funded by these supplements will come after the recession, but burdens will be imposed during the recession."
Copyright © Press Association 2008
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