EAST Lancashire business leaders are celebrating a victory over Government plans to allow local authorities to levy a supplementary business rate.

The East Lancashire Chamber of Commerce lobbied strongly against additional business rates which it said would increase costs for business and industry.

The Department for Environment, Transport and the Regions is now expected to allow councils to establish small Business Improvement Districts in which companies will decide with councillors whether local taxation is justified.

Chamber of Commerce chief executive Mike Damms said: " East Lancashire companies had been closely involved with the campaign.

"We took the proposed additional levy very seriously because we were convinced it would lead to increased costs to business and would harm relations between business and local authorities," he said. of setting up Small Business Improvement Districts, where businesses will decide with councillors whether local taxation for funding specific economic regeneration projects is justified, is a great advance."