Sim City
While rummaging through some old things in the loft I came across an old favourite PC game - Sim City. For those of you who have not played this game, and those of you who have political asparations, it teaches you basic skills in tax manipulation and the effects it has on the population of the city you create and run.
Example: Increase property tax = population decrease. Increase Commercial Tax - Quality of life is depleted = population decrease - Increase tax on industry Unemployment goes up = population decrease. You can also fund Welfare, Puplic Transport Police, Fire, Roads etc - but if you can't raise the tax revenue-you can't pay. If the taxes are raised the population decreases and revenue falls = Game Over.
However this did get me thinking about business rates. Why? Because in the UK Local authorities have the ability to control the Residential Rates of Tax through council tax. But the flaw is evident in that local authorities do not have the same control over commerce and industry. These rates are set by the Welsh Government in Cardiff and collected through the local authorities to be redistributed.
In the afore mentioned game the governor gets to select the rates of tax for all elements of the Simulated City to win the game (goal being stay in the green and make everyone happy), but in reality the Local Authorities of Wales only have one of these controls - Residential = Council Tax.
It would be wise then that each local Authority takes control of its own setting of the business rate. I am a fan of Enterprise Zones because they provide areas for businesses to flourish due to the decreased tax demands, but if each Local Authority could control those very taxes then we would instantly generate 22 competitive Enterprise Zones in Wales, surely a great breading ground for business.
