The local rate will include the boat (7)
I believe the answer is:
pinnace
'boat' is the definition.
(historical type of small boat)
'the local rate will include' is the wordplay.
'the local' becomes 'inn' (local can mean someone's local pub).
'rate' becomes 'pace' (pace is a kind of rate).
'will include' is an insertion indicator.
'inn' put inside 'pace' is 'PINNACE'.
'the' acts as a link.
(Other definitions for pinnace that I've seen before include "Ship's boat - nice nap (anag)" , "Vessel" , "Small boat" , "tender" .)