What we do

Local property/land values

Local property taxes in the UK currently cover both business rates and council tax.

Business rates are a tax based upon a government estimate of the rental value of a property at a given point in time. They are collected locally but nationally pooled and re-distributed to councils on a per capita basis.

The government has set up an independent review of local government structures and finance led by Sir Michael Lyons. This ongoing review is considering reform of business rates and council tax, and is due to report before the end of December 2006.

Similarly, in Scotland, a Local Government Finance Review Committee is set to report on reform of Scottish local taxation in Autumn 2006.

We recognise the need for business to contribute towards local government services and see local taxation as a potential incentive for development. However, local taxation is a business burden and it needs to be administered both fairly and efficiently.