The Live Wire



Press Release

FSB calls for Local Authority Business Growth Awards to be spent on supporting local firms

8 February 2006

The Federation of Small Businesses today called on the Government and local authorities to ensure that new money for councils, awarded to them due to growth in the local economy, is spent on supporting further business growth. At the moment it is up to local authorities to decide how their award is spent.

The Local Authority Business Growth Incentives (LABGI) scheme provides an incentive for local authorities to promote economic growth in their area by allowing them to retain a portion of any increase in rateable value. According to the Government, the scheme will see funding to local authorities increase to almost £1 billion over the next three years, to 2007/08. For 2005/06, more than 250 local authorities in England, including 15 in London, will be awarded in excess of £105 million for 2005/06 under the scheme.

Roger Culcheth Person, Local Government Spokesman for the FSB, said:

“Local Authority Business Growth Incentives funding comes largely from the success of local firms and thus this money should go back into supporting local enterprises. Small businesses already contribute to their local area through providing essential services and tax revenue.”

“The money awarded to councils by the Government through this initiative must not get lost in Council finances. We therefore call on local authorities to ring fence this grant money to support the success of businesses in their area. Diverting this money to other Council services will send the wrong message to local businesses”



Press releases, papers and documents published on this page are the intellectual property of an organisation unrelated to Central Lobby. We promote their parliamentary and political campaigning activities as they are subscribers to the Central Lobby service.

As such, Central Lobby does not edit, endorse, or attempt to balance the opinions expressed on this page. The content of press releases and other such types of content are the responsibility of the originating organisation.

Federation of Small Businesses

Federation of Small Businesses

More from Dods

© Dods Parliamentary Communications Ltd