Cash windfall for business growth

Archived press release

Date Published: 23/04/07

A grant of more than £700,000 has been made to Aylesbury Vale District Council under a government scheme to reward local authorities for their contributions to local economic growth. The Local Authorities Business Growth Incentive (LABGI) s...

A grant of more than £700,000 has been made to Aylesbury Vale District Council under a government scheme to reward local authorities for their contributions to local economic growth.

The Local Authorities Business Growth Incentive (LABGI) scheme awards a grant based on the growth in business properties in an area between December one year and December the next year. It is measured in terms of properties liable for business rates.

The scheme gives local authorities additional money to spend on their own local priorities and is not ring-fenced to any particular purpose.

AVDC is among 328 local authorities to receive a share of £316 million for 2007/8 under LABGI. The council has been awarded £715,426 for this financial year, which is a significant increase on the £70,000 received in 2006.

At a meeting of AVDC’s cabinet on 17 April, members began to look at how the grant money could be best used. A number of possible initiatives were discussed, including supporting the development of an innovation centre in Aylesbury, assisting new and existing small businesses and making improvements to the street scene. The council will make a decision on how the grant money will be spent later this year.

Commenting on the LABGI award, Peter Watson, Head of Finance at AVDC, said: “This award is richly deserved. The growth in business rate income reflects the Vale’s economic expansion and the increasing investment in our district.

“The LABGI grant is an annual allocation and will not necessarily be repeated in the future so it’s important that we target the use of the funds to achieve the maximum benefit. The council has a key role to play in supporting business start-ups and growth and we are committed to ensuring that Aylesbury Vale will continue to develop.”