A new ground breaking agreement being trialled by Cambridgeshire and Peterborough Councils with the Government could see millions of pounds of business rates being kept locally.

George Osborne, Chancellor of the Exchequer announced today in his budget speech a new deal for Cambridgeshire and Peterborough which would see the area benefit from growth.

Currently authorities have to share business rates 50/50 with Central Government. Now authorities will be able to keep 100 per cent of business rates generated beyond forecast levels.

This means that for every 1 per cent over the forecast achieved Cambridgeshire and Peterborough authorities could receive £10 million over three years.

The money will be spent on projects to support the economy and growth, including helping boost jobs in the area.

The new deal has been negotiated between Cambridgeshire County Council, Peterborough City Council, Cambridge City Council, South Cambridgeshire District Council, Huntingdonshire District Council, Fenland District Council, Cambridgeshire and Peterborough Fire Authority and the Treasury.

A spokesman for the Cambridgeshire and Peterborough authorities, said: "This deal means that more of the benefit of business growth generated within Cambridgeshire and Peterborough will be kept within the local area, rather than going straight to the Government. We have been arguing this case for some time and are pleased that the Government has recognised the contribution the area is making to the national economy. At a time of tight budgets and more pressure on frontline services, it means these locally generated funds can be invested in helping boost local jobs and supporting business."

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