News: Rotherham rewarded for business growth

Rotherham Council has been awarded an additional £1.4m from the government as a result of the business growth seen in the borough over the last few years. The Local Authority Business Growth Incentives scheme (LABGI) delivers financial rewards directly to councils that promote economic growth in their areas, by allowing them to retain a share of increases in revenue derived from business rates. Local Government Minister John Healey said that: "LABGI ensures that every council has a direct financial incentive to promote enterprise, jobs and local business growth, helping them to boost our country's economic potential." The £1.4m includes funds for the final year and additional funds for the first 2 years after changes were made to how business growth is measured. The rateable value in Rotherham increased by £6m between 2004 and 2006 and overall, the borough will receive over £3.2m. The government hopes to make the LABGI scheme a permanent feature of the council funding system.
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