The £123 million net budget for public services provided by the York Council is currently funded by Council Taxpayers (60%), central government grant (9%) and Business Rates (31%).
The York Council collects around £88 million in Rates from local businesses and this goes into a national pool. Around £43.2 million is used by central government to subsidise services in less well off areas like Bradford, Hull and Barnsley.
Starting in 2013 York will retain locally generated Business Rates but to will still have to contribute its “surplus” to a central pool. In net terms it will be no worse off than currently is the case.
However, the new rules will allow the City to retain part of any additional income generated by new businesses. This should be to our advantage as we are currently the second fastest growing City in the country.