Does Local Authorities Pay Business Rates?

Currently local government, collectively retains half of the income from business rates, the other half is paid by councils to central government, which uses the income to fund grants to local authorities. The previous Government announced plans for the local government sector to retain all business rates by 2020.

Do local authorities get business rates?

Business rates are collected by local authorities. This money, together with revenue from council tax payers, revenue support grant provided by the government and certain other sums is used to pay for local services.

Do local authority schools pay business rates?

Local authorities set and provide the budgets for local authority maintained schools, which contain business rates funding. Once local authority maintained schools receive a business rates bill from their billing authority, they pay the cost of the bill directly to the billing authority.