Two-thirds of councils would see their income fall in real terms by 2025 under the government’s proposed Business Rates Retention System, says the New Economics Foundation.
The Institute for Fiscal Studies says a pilot of business rate retention for English Councils has limited potential for learning about the long-term impact.
Local authorities are struggling to juggle higher demands against central government funding cuts of nearly 50 per cent since 2010-11, says the National Audit Office.
Government plans to increase the share of business rates English councils retain risk growing divergences between the funding available to different councils, says the Institute for Fiscal Studies.
Already stretched councils in England will see the core central government funding they use to pay for vital services like collecting bins, filling potholes, protecting children and caring for elderly and disabled people, cut in half over the next two years.