London firms are getting a helping hand from the government after the chancellor announced that the capital will be able to retain 100 per cent of its business rates.
The pilot programme will take place in 2018-19, with the Greater London Authority and the London boroughs forming a business rates pool that will be invested across the capital.
The business rates revaluation has hit the capital particularly hard as rents have sky-rocketed since the level of the commercial property tax was last set.
Colin Stanbridge, chief executive of the London Chamber of Commerce and Industry (LCCI), said: “We have long been in support of business rates retention along with the decoupling from the national system.
“LCCI has been calling for the devolution of business rates to London as we believe that City Hall and local authorities are best placed to decide where investments need to be made.”
The move comes with a raft of other measures announced by the chancellor on business rates, including the continuation of the £1,000 business rates discount for pubs with a rateable value of up to £100,000.