MORE than £100 million was paid by Swindon organisations in business rates last year, new figures show.

The amount is an increase on last year, with more than 3,000 businesses, public sector bodies and volunteer groups paying the bill.

Unsurprisingly, Honda has paid the most with its South Marston factory costing £4.7m in rates while B&Q paid more than £2m for its depot.

The figures have been welcomed by council chiefs ahead of plans by the government to let local authorities keep all business tax.

This is being done to replace grants which are currently being reduced and one of the reasons many councils are having to make cuts.

While the exact details of how business rates will be distributed have yet to be announced, Council Leader David Renard says it is a positive sign for Swindon.

“Swindon is hugely successful in terms of its economic growth,” he said.

“The issue is that successive governments have taken a larger proportion to spend elsewhere so Swindon has not seen the real benefits of that success.

“I am delighted with the figures.”

However, Coun Renard does not believe Swindon will get all the business rates generated under the new scheme as some will likely go to less prosperous authorities.

He said: “It has tended to be much of the money generated through business rates has gone to northern authorities and I can’t see that changing.

“Nothing has been announced yet so I can’t say for certain but I would be surprised.

“This is why we have made economic growth one of our key pledges. If we can generate growth, then not only is it good for the town as a whole but it will put us in a better position financially going forward.”

The Labour Group has also welcomed the figures but have concerns it might be used as an excuse by central government to impose further cuts.

Group leader Coun Jim Grant (Lab, Rodbourne Cheney) said: “On the face of it the retention of business rates could be good for Swindon as we are clearly generating high levels of rates due to the higher than average number of businesses in the town.

“However what we’ve heard from the Local Government Association and other councils is that this will likely count against us and is a way for the government to make further cuts to local government.

“We’ve been told that in exchange for keeping business rates the government will either cut government grants to councils back even further and possibly will force councils to take on unfunded additional responsibilities which we will be expected to pay for locally.

“Given the government’s past ignorance to the effects of council funding cuts, I think it only likely that they will somehow use this as a way to impose further cuts on councils.”