Business Matters and Local Taxation

On LBC Radio yesterday I had a most enjoyable encounter with Dr David Kuo and James Max. We talked about the budget and offered bits of advice to callers, some details of which can be found on the Business Matters blog.  However one thing sticks in my mind.  During a discussion on business rates David made the point that biz rates are roughly apportioned according to demands on local services.  So a bigger premises would have more need for refuse collection etc and would therefore pay higher rates regardless of turnover .  Whilst this is true in theory, in practice only around 5% of the rates collected is retained by the local authority, with the rest going to central government.  Which to my mind makes it just another form of biz taxation.  A point I wish I'd had the wit to make at the time.  But live radio doesn't allow for retakes.