Councils are being offered multi-million pound incentives in order to back businesses, this has emerged after a town hall shake up in terms of funding.
It has been revealed that local authorities will be allowed to keep a share of the cash that has been gathered from the extra business rates. At present it is the Treasury that decides how much each area will get to keep.
It is hoped that this move will encourage councils to support businesses and business growth. It is believed that more councils will approve panning applications and will help companies to expand. There will be the financial reward incentive if they do this.
Deprived areas currently benefit from the Government as they are provided extra cash but they have been fully assured that they will not lose out.
The Government has stated that for too long the councils throughout the UK have been discouraged by a system that failed to encourage and reward economic success.
Whilst there have been promises made by the Government that the deprived areas will not lose out, many councils have stated that they are worried about this scheme.