Response: Business Rates Retention

By: Deborah Garvie  Published: September 2012

From April 2013, there will be a radical reform of the way local authorities are funded. A Business Rates Retention scheme will replace the current Formula Grant funding system. This will enable local authorities to keep a proportion of locally collected business rates. Shelter is responding specifically to the call for evidence on the Homelessness Prevention Grant being rolled into the new funding system.


Local spending on homelessness prevention must reflect the needs of the area. The number of households found to be homeless increased by 9% in England in 2011/12 to nearly 78,000. But at this time of rising demand, homelessness services are already facing significant cuts. The rolling of Homelessness Prevention Grant into the Business Rates Retention scheme must not result in a further reduction of funding for local homelessness services.


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