Issue - meetings

Report of the Cabinet Member Finance

RESOLVED THAT

1.    the increase in the business rates retail discount scheme for 2020/21 as detailed in appendix 2 and the detailed guidance in appendix 3 be approved.

2.    the local discretionary revaluation support scheme for 2020/21 in accordance with section 2 of this report and appendix 2 be approved.

3.    the continuation of the Supporting Small Businesses Relief Scheme in accordance appendix 2 be approved.

4.    the Pub Discount scheme for 2020/21 in line with appendix 2 and the detailed guidance in appendix 4 be approved.

5.    the Executive Director Finance and Assets, in consultation with the Cabinet Member Finance, be authorised to reset the percentage relief level for local revaluation support in respect of 2020/21 if necessary.

6.    Due to the volume of cases, delegate decisions relating to the application of these reliefs be delegated to the Head of Revenues and Benefits and officers in the Business Rates team. In the case of a dispute reconsideration is to be made by the Executive Director Finance and Assets.

The Cabinet Member Finance introduced the report and explained that the Local Revaluation Support had been available since 2017/18 to help businesses facing large increases in rates bills due the to the 2017 revaluation. The Government allocated a specific sum of money to billing authorities for each of the four years 2017/18 to 2020/21 to fund a locally designed relief scheme.

2020/21 was the final year of funding for Local Revaluation Support Relief with just £7,700 being available to distribute to businesses. Those businesses in receipt of any other mandatory or discretionary reliefs, including those funded by the Government would be excluded from this scheme. This left about 120 businesses locally to share the £7,700.

Approval was now being sought to award the relief in line with the funding available and the scheme conditions as outlined in appendix 2.

The Cabinet Member Finance reported that in the budget statement on 29 October 2018 the Government announced that it would provide business rates discounts for retail properties for the financial years 2019/20 and 2020/21. In 2019/20 the discounts apply to occupied properties being used for retail purposes with a rateable value of less than £51,000. The value of discount is one third of the full rates payable, to be applied after other reliefs. The Government has confirmed that for 2020/21 the level of discount was being increased to 50% of the rates payable after all other reliefs and extended the criteria to include music venues and cinemas. She reported that the discount was now available to shops, bars, pubs, café’s, restaurants, coffee shops and takeaways. It also included those properties being used for services such as travel agents, hair dressers, dry cleaners and shoe repairs.

The Cabinet Member Finance reported that on 22 January 2020 the Government announced its intention to provide a £1,000 business rate discount to pubs. The discount was a one year measure for 2020/21 only and would apply to pubs with a rateable value of less than 100,000, subject to state aid rules. The discount would be fully funded by the Government and was to be awarded in line with the detailed guidance in Appendix 4.

Finally, she paid particular thanks to the authority’s Revenues and Benefits Team who had worked hard to use as much as possible of this money from government  to support smaller businesses.

The Leader also wished to put on record his thanks to staff for maximising the amount allocated. Whilst the funding was welcome,  it did however not represent a real replacement for a complete overhaul of the business rates scheme which he hoped would be progressed by government.

RESOLVED THAT

1.    the increase in the business rates retail discount scheme for 2020/21 as detailed in appendix 2 and the detailed guidance in appendix 3 be approved.

2.    the local discretionary revaluation support scheme for 2020/21 in accordance with section 2 of this report and appendix 2 be approved.

3.    the continuation of the Supporting Small Businesses Relief Scheme in accordance appendix  ...  view the full minutes text for item 8