Leaders from all parties at Waverley Borough Council have written to Local Government Secretary Robert Jenrick, urging him to consider radical reform when he undertakes the forthcoming review of Business Rates funding.

The letter to the Secretary of State for Housing, Communities and Local Government stresses that 'tinkering around the edges' will simply not fix the long-broken mechanism for funding local government.

The current system sees Waverley retain just 5% of the £36m collected from businesses in the borough each year to fund services. The councillors argue that this is both unfair and unsustainable, as it doesn't provide a financial incentive or level of certainty to help the council to invest in and regenerate its communities.

They maintain that the system is also unfair to businesses, whose charges often bear little relation to their business value or revenue. The pandemic has compounded this issue, as bricks and mortar retailers in particular have struggled, while many online businesses have thrived.

The letter, signed by leaders of each of the five political parties plus Independent councillor Maxine Gale, describes the current business rates system as "non-transparent and complex" and says it does nothing to incentivise economic growth.

It adds: "How is it fair that Waverley's businesses pay Waverley £38m each year but the council only retains £1.8m to help fund services for its community? We understand the need for government to redistribute funds to balance needs and priorities nationally but retaining just 5% of total revenue is inequitable and unsustainable for this council.

Council leader John Ward said: "We're very concerned about the effect the current system has on our local businesses. Sectors such as warehousing and online typically pay a tiny fraction of their revenue in business rates, in contrast with local high street businesses, who are offering value and convenience to customers, generating jobs and helping ensure vibrant local economies.

"We understand the Government's desire to redistribute funds to balance needs nationally, but retaining just 5% of total revenue doesn't give us the ability to improve and invest in our towns and villages. Local businesses need to see that their money is being used to invest in local communities and infrastructure. The seriousness of this situation is emphasised by the fact that all political parties have agreed with this."