Localism Bill 'of concern' to business groups

Business groups have expressed their concerns over how the Government's Localism Bill could affect firms.

According to the newly-published guide, the bill would enable "a radical shift of power from the centralised state to local communities", stemming from the Coalition's agreement that "the days of big government are over; that centralisation and top-down control have proved a failure".

However, the British Chambers of Commerce (BCC) has suggested that the legislation could place a dampener on companies which wanted to expand, warning that growth plans could be "shackled or stifled at the hands of an agitated few".

Arguing that the planning process must be made simpler for businesses wanting to expand premises, or develop new ones, BCC director of policy and external affairs Dr Adam Marshall said that there were "deep concerns" over planning proposals - described by the Government as being a "radical re-boot" - contained in the bill.

Businesses also "face a period of uncertainty as new rules are implemented," he said.

"This could stop both small- and large- scale investments during 2011, which should be a year of growth."

Under proposals, those who want to undertake large developments will need to consult with local people - allowing them to have their say on design and other issues - before even getting to the stage of submitting a planning application. In addition, developments put forward by communities and receiving 50% of support in a local referendum will not need planning permission.

Dr Marshall added that the BCC would campaign to "ensure that NIMBYism does not stifle the private sector growth that is needed to create jobs and prosperity in all our communities".

Acknowledging the argument that "NIMBYs will take over and stop all new development", the guide to the bill asserts that "the only way forward is to embrace decentralised development that is not merely accepted, but actually led by local communities".

Meanwhile, the British Retail Consortium (BRC) also acknowledged that there were "some concerns" in the bill, though said the legislation also "throws down the gauntlet to local councils who must not respond by inventing new ways to stifle business".

However, the group hailed the inclusion of a requirement for businesses to vote before the introduction of a Business Rate Supplement (BRS). This would mean that English councils outside London would only be able to increase business rates to fund services which have the backing of local firms.

Describing it as a "major victory for the BRC on behalf of vulnerable retailers big and small," director-general Stephen Robertson said it would be "fundamentally undemocratic to put extra taxes on local businesses without establishing their views first".

Introduced to Parliament on Monday, the bill is currently at the second reading stage.

IMAGE Lewis Whyld/PA Wire

Whatever the concern, let More Th>n insurance protect your business. Ask us for a cheap shop insurance quote today, or find out about our great value van insurance.