Paying for Local Government: An Appraisal of the British Government's Proposals for Nondomestic Rates

Abstract

In its recent Green Paper on local government finance, the British Government has proposed that the existing system of nondomestic rates be replaced by a uniform and centrally determined rate poundage. This idea has merit in principle in that it could improve the accountability of local authorities to local residents. But it is argued that the particular proposals in the Green Paper are deficient in ignoring the need for accountability in services provided to local businesses, and in failing to examine the rationale for retaining business rates within a reformed system.