Issue - meetings

(Finance Portfolio Holder) To consider the attached report (C-018-2017/18).

(1)        That, in accordance with section 47 of the 1988 Local Government Finance Act, the Discretionary Rate Relief Scheme be approved following the 2017 Revaluation as shown in Appendix 1 of the report; and

(2)        That authority be delegated to the Director of Resources, in consultation with the Finance Portfolio Holder, to enter into any Essex-wide application to become a pilot for 100% business rates retention.

The Finance Portfolio Holder presented a report on the Discretionary Rate Relief Scheme for Business Rates, and the possibility of the Council participating in a pilot scheme for 100% Business Rates retention.

The Portfolio Holder informed the Cabinet that, in March 2017, the Chancellor of the Exchequer had announced a £300million funding package for Local Authorities to each devise a local discretionary business rate relief scheme for those facing an increase in their bills following the 2017 Business Rates Revaluation. The relief would be funded by the Government via a Section 31 grant under the Local Government Finance Act 1988. The Council’s scheme targeted local businesses and applied a 65% reduction in the increase in bills for those businesses in 2017/18, with future amounts of relief reducing in the future in line with the Section 31 grant the Council would receive.

The Portfolio Holder stated that, on 1 September 2017, the Department for Communities and Local Government (DCLG) published an Invitation to Local Authorities in England to pilot 100% business rates retention in 2018/19. A possible application was currently being explored with other Essex authorities but the deadline for applications was 27 October 2017. As it would not be possible to seek approval for the detailed application from either the Finance and Performance Management Cabinet Committee or the Cabinet before the deadline, delegated authority was requested for the Director of Resources, in consultation with the Finance Portfolio Holder, to determine this Council’s participation in any Essex-wide application.

In response to questions from the Members present, the Portfolio Holder stated that there was currently no payback of Business Rates to the Government proposed as part of the 100% Business Rates Retention pilot, but consultation with the Government regarding the operation of the scheme was still in progress. The Council was also discussing the proposed split of Business Rates collected with the other Essex Authorities.

Decision:

(1)        That, in accordance with section 47 of the 1988 Local Government Finance Act, the Discretionary Rate Relief Scheme be approved following the 2017 Revaluation as shown in Appendix 1 of the report; and

(2)        That authority be delegated to the Director of Resources, in consultation with the Finance Portfolio Holder, to enter into any Essex-wide application to become a pilot for 100% business rates retention.

Reasons for Decision:

A Discretionary Rate Relief Scheme had to be approved to enable the Business Rates relief to be awarded.

To provide a mechanism that would allow the Council to participate in an Essex-wide pilot for 100% Business Rates retention.

Other Options Considered and Rejected:

To vary the criteria for relief.

To not approve a policy and not award any relief.

To decide now that this Council did not want to participate in a business rates retention pilot.