City rewarded for boosting government tax coffers

February 9, 2009 10:26 AM

Cambridge City Council has received a £531,000 "reward" from the government for boosting its tax coffers.

The money was collected as business rates and a small share of this was supposed to be paid back to the council in 2007 to mark how Cambridge's growing economy had led to an increase in business property.

But after a number of councils challenged the scheme, the government withheld the money.

Now it has released Cambridge's share and the city council plans to inject the cash into the second phase of the Lion Yard shopping centre refurbishment.

"By investing this money into the shopping centre, we are planning for the future when the downturn comes to an end," said Cambridge City Council leader, Cllr Ian Nimmo-Smith.

"In previous years we have invested money from this source back into supporting the local economy, and we believe the Lion Yard project will boost the long-term vitality of the city centre shops. This will help to secure an important source of income for the council through its share of the rentals. This, in turn, goes to support services throughout the city."

The government pay out is made through a scheme called the Local Authority Business Growth Initiative which ran for three years until 2007.

What would you like to do next?