Council Leader blasts 2p business tax proposal

The Leader of Manchester City Council, Sir Richard Leese has warned that calls for an increase of up to £600m in business rates could ‘undermine efforts to secure vital investment in the city region.'

Sir Richard's warning follows last week's call by the Greater Manchester Momentum Group (GMMG) for a 2p increase in the business rate as an alternative to the Transport Innovation Fund's proposals.

In a leaflet produced by GMMG the group calls for "supplementary business rates - adding 2p to business rates would raise £400-600 million" as a way to fund transport investment "without a congestion charge".

Sir Richard Leese, Leader of Manchester City Council, said: "This is not a serious alternative to £3 billion of investment in public transport. Even if GMMG's figures are correct, this is less than half of what is needed and will not help tackle congestion. This proposal is an indiscriminate tax on business irrespective of whether or not they contribute to congestion. It could seriously damage the health of the region's economy if such a policy was put in place.

"Our objective is to help businesses grow and prosper, creating employment opportunities for local people. This tax, if implemented, would only serve to have the reverse effect.

A policy like this would require all ten councils to agree which is unlikely to ever happen. Manchester City Council has never supported and does not support supplementary business rates. I call on GMMG to withdraw their proposal."

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