WORCESTERSHIRE business leaders have given a "cautious welcome" to proposals that local councils should be allowed to raise a supplementaty business rate.

Responding to the recommendations in the Lyons Review, Gary Woodman, policy executive at the Chamber of Commerce Herefordshire and Worcestershire, said: "Sir Michael Lyons' recommendation on supplementary business rates is essentially re-localisation by another name.

"The chamber has given a cautious welcome to this proposal, if it gives businesses a greater say on the projects and services they receive. We will wait and see what our local councils in the two counties are going to propose.

"If any form of local increase is going to be levied against the local businesses, then it is essential that a majority of businesses are in favour of this increase and that it is clear what services and projects will be delivered by the local council in order to improve the economic pros-pects in the two counties."

He said that if the chamber's members were to support the increased rates they would want to know how the cash was being spent to improve economic prosperity.

"If what is being proposed will give local councils the ability to levy an extra rate on businesses without any acc-ountability and no guarantee that the extra revenue raised will be spent on projects that actually benefit those paying for them, then the chamber and its members will not support any extra increases in local taxation.

"Throughout the country there are examples of business improvement districts, where this shows the willingness of the business community to contribute extra resources and businesses have a say in how their money is spent."