North Lincolnshire’s economy set to prosper

Local businesses today heard how the business economy would benefit from the Government’s plans to change its business rates system – as it consulted on its budget plans.

The changes, under the government’s Local Government Finance Bill is due to come into effect April 2013. It will mean that as businesses grow, more money would be generated for the local economy. And the changes will give the council an added incentive to support economic growth in the area.

At the meeting, director of finance Mike Wedgewood gave an overview of how the council sets its budget as part of an ongoing consultation.

Businesses were also given advice on how to tender for key contracts. If you want to know what contracts are available to tender for, visit www.scms.alito.co.uk.

Businesses will later in the year be able to apply to spread payment of part of the increase in the 2012/13 rates over three years. For further details or to check if your business qualifies for small business relief contact the council's business rate section on 01724 296095.

Cllr Neil Poole, cabinet member for finance, procurement and IT services at North Lincolnshire Council, said: “The change in business rates is set to be hugely beneficial to the area. At the moment, there is a £19million shortfall between what we collect in business rates and what we actually get back from the Government as the money goes in one central pot and is redistributed according to areas of greatest need. But as North Lincolnshire has a thriving business community with large employers such as Tata steel and power stations, this means we are loosing out.

“The changes will not alter the level of business rates that companies have to pay. But it will mean that if the business grows, we get more money back into our local economy.

“With multi-million plans for the South Humber Bank and the potential to attract new businesses, this would be hugely beneficial to the area.”

Paul Gouland from Clugston Construction and representing the Hull and Humber Chamber of Commerce, said: “I want to thank the council for inviting the business community to engage with it on its budget for the next three years. I greatly appreciate this.

“In these difficult times, with tremendous pressures and constraints, constructive dialogue between the public and private stakeholders is invaluable and this is something the Chamber wishes to build on.

“I’m pleased that the council recognises the value of its role as a major customer. Supporting our local economy by buying services wherever possible is something all of us should strive to do.”

“It’s good that local business are keen to get involved and I welcome wholeheartedly what the council is striving to achieve to take our local economy forward.