The Local Authority Business Growth Incentive (LABGI) is a government scheme that rewards councils that achieve growth in their business base.
Over the past three years any growth in Uniform Business Rates over a certain threshold has been rewarded by a cash grant that can be spent entirely at the discretion of the receiving authority.
Brighton & Hove City Council has a good reputation for using LABGI funds to support the local economy (see earlier story in knowledgebase) but nationally the scheme has been controversial because some Councils have used it to plug holes in their funding for mainstream services.
Since it is un-ringfenced there is nothing to prevent this but many commentators felt that, at least some of the funds, should have been ploughed back into business development that would encourage further growth.
The government issued a consultation document in October and has just closed a twelve-week consultation period on the future of LABGI and the Brighton & Hove Economic Partnership response can be downloaded by clicking on the link below
Click here to download BHEP Response to LABGI consultation
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Brighton & Hove Economic Partnership