Financial Times FT.com

Pre-Budget report 2007

Business faces rise in rates

By John Willman, Business Editor

Published: October 9 2007 21:18 | Last updated: October 9 2007 21:18

The government has decided to grant local authorities their long-held wish to increase the amount they can raise from businesses through a supplementary business rate to finance projects such as improvements in transport infrastructure.

The measure remains unpopular with business groups, which are fearful of the spendthrift ambitions of local councils and see themselves as an easy target to finance spending that will be popular with local voters.

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