South Hams Council is planning to offer tax breaks to businesses in a bid to bring new jobs to the district – and stop existing employers from moving out.

The district is already losing employers to neighbouring local authority areas where they can get a better deal, councillors were warned.

Now South Hams councillors aim to be able to offer the same incentives.

That means offering companies discounts on their business rates that could see some companies bills slashed, members of the council’s executive were told. South Hams Council Conservative Leader John Tucker said: ‘We need to approve this policy and implement it to make sure that businesses stay in the South Hams.

The councillor made it clear that the tax breaks would be aimed at new business thinking of moving to the South Hams or growing businesses which might be thinking of moving out.

A report to councillors made it clear that the council discretion over business rates in such situation would only be used ‘in exceptional circumstances’.

Half the business rates collected across the district is handed over to the Government while nine per cent goes to Devon County Council and one per cent to the fire authority.