Andy Preston, independent Mayor of Middlesbrough, said: “There’s a window where we lose cash and that adds up to a lot, so we’re doing everything we can to help make sure we can sustain organisations.
” We’re trying to bring individuals into town to live here, for leisure, to work, however it’s a huge battle, and what’s even worse, an unfair fight.
David Rhodes, Political Reporter
Councils throughout the nation are captured in between a rock and a difficult place.
Whilst some councils would like to see business rates reformed or even eliminated, many also fear a significant overhaul of the company rates system that could see them lose a crucial source of income to money regional services.
‘ We require more assistance’
In other places, the collapse of bigger organisations can considerably reduce regional authorities’ earnings through empty premises relief.
The collapse of the SSI steelworks in Redcar and Cleveland in 2015 led to a loss in business rates of around ₤10 m.
Around ₤ 3m was provided to the council as part of a federal government “safety net” bailout but the regional authority was still faced with countless pounds of lost income and no rates on the website moving forward.
The local council has actually estimated the closure will see it underfunded by ₤125 m to 2025.