BUSINESS rates from Kirklees will be pooled with other West Yorkshire authorities.

Changes to the way business rates are collected means local councils can pool what they collect regionally rather than nationally. Previously it went back to the government to be re-distributed.

As part of the Leeds City Region all five councils, plus York and Harrogate, will pool their business rates and share the rewards and risks.

The pool’s revenue will go into a regional investment fund to attract or develop business and employment.

It’s estimated to generate £600,000 for Kirklees in year one rising to £4 million a year by 2018/19.

Kirklees Council Leader, Clr Mehboob Khan, said: “It’s estimated currently that it could bring in tax revenue of £600,000 to benefit Kirklees. There are some risks as well.”

Clr Peter McBride, Cabinet member for Place, added: “I agree with a West Yorkshire pool rather than a national pool; 18,000 people in Kirklees work in Leeds, 12,000 work in Bradford and others elsewhere – the boundaries don’t mean very much in employment terms.”

Under the terms income received by the pool will be shared out so no local authority will be worse off than if they were treated individually.

The risks come from local authorities suffering a substantial reduction in business rates.

Cabinet agreed to contribute to the regional business rates pool and it went before the full council on Wednesday for discussion.

There it was revealed that the Leeds City Region has an economy of £55bn, second only to London.

Clr Khan told council that working with other local authorities would mean a collaborative approach to attracting businesses who will provide jobs for local residents, rather than councils rivalling each other.

Clr Robert Light, leader of the Conservatives, said: “Economic prosperity and lack of it knows no boundaries or local authority boundaries so I agree with this.

“It is in the interests of the City region to pull this one off – in the long term we can benefit from this in the right way”.