Cabinet to decide individual applications
The York Council is set to make available Business Rate reductions for “young” businesses. The businesses must be independent and less than 2 years old. They would enjoy a 50% reduction in rates payable during the first year.
They must be operating in one of the following sectors.
- Bio-medical/sciences
- Agritech
- Insurance & Professional Services
- Rail & related industries
- Business software innovation
- Creative medicine
The scheme will also apply to proposals to bring empty Listed buildings back into commercial use AND MAY BE EXTENDED TO COMPANIES WISHING TO RELOCATE TO THE CITY.
With the local economy in danger of overheating – early in the economic recovery we are already approaching full employment – the scheme is not targeted on depressed parts of the City.
Local shopping centres like Front Street have fared poorly in recent years. The last thing that businesses in locations like that need is subsidised competition.
The scheme has also been criticised as the plan is for decisions, on which companies will get the award, will be taken by a single party committee (the Councils “Cabinet”).
Companies that apply are not required to reveal what donations to political parties they have made or are planning to make.
The Council has not revealed how much the discounts will cost. The total amount of state aid to an individual company under EU regulations is limited to € 200,000.