Under the business rates retention arrangements introduced from 1 April 2013, authorities keep a proportion of business rates paid locally. This is a direct financial incentive for authorities to work with local businesses. It creates a favourable local environment for growth as councils benefit from business rates revenues.
The money, together with revenue from council tax payers, revenue support grant provided by Government and certain other sums, is used to pay for council services in your area.
See further information about business rates on GOV.UK