Different types of incentives are needed, that reward creative investment in local places, rather than new development alone.
Kevin Muldoon-Smith, Author at NewStart
George Osborne’s plans for business rates devolution have so far thrown up more questions than answers, says Kevin Muldoon-Smith
Without careful consideration, the reliance upon commercial real estate could lead to a period of overbuilding where development, financial markets and local authority officers operate in overdrive to build new income-generating structures in order to repay loans and capture value.
Rather than ameliorating spatial inequality, the business rate retention strategy potentially exacerbates uneven development. Consequently, our findings suggest that the centralised national economy could be replaced by an equally divisive city based one, where a minority of locations are dealt all of the aces while the rest get a raw deal.