Agenda item

Report of the Cabinet Member Finance

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 reducing sum of money to billing authorities for each of the four years up to 2020/21 to fund a locally designed relief scheme.

She explained that of the £271k available, £268,000 had been allocated in respect of 2017/18. Legislation allowed the relief to be awarded up to 6 months after the end of the relevant financial year so no further relief could be awarded in respect of 2017/18.

Of the £132k allocated for 18/19, £122,000 was initially awarded in this financial year but due to businesses vacating their premises and rateable value changes this had reduced to £111,000. So far relief this year had been awarded to 250 businesses

The Cabinet Member reported that Local Revaluation Support Relief would continue to be available in 2019/20 with the funding available at £54,000 with an estimated 235 businesses benefitting. In 2020/21 the final year the amount would reduce to £8,000.

As the revaluation support scheme was intended to provide relief to businesses that faced increased bills due to the revaluation, relief would only be available to businesses that have qualified continually since 2017/18.

Approval was sought to award the relief in both years in line with the funding available and the scheme conditions in appendix 2. So that the total relief awarded to businesses in both years was as close as possible to the funding available, authority was being sought for the Executive Director Finance and Assets, in consultation with the Cabinet Member for Finance, to determine the actual percentage to be applied.  Which would be made prior to the annual bills being issued in March each year and the rate would be reset if required to ensure the funding was distributed.

Relief for businesses losing the small business rate relief was still available to help those ratepayers who as a result of the 2017 revaluation lost all or some of their small business rate relief and faced large increases in bills.

The relief limited the increase in 2017/18 to the greater of 5% or £600. It then reduced each year, for up to five years, until the full rate bill was met.

This relief would be funded by the Government and awarded in line with the detailed guidance using the Council’s discretionary powers. Sections 3 and 4 on State Aid and Administration in Appendix 2 would also apply to this relief.

In terms of new retail discounts these would be available for occupied properties being used for retail purposes with a rateable value of less than £51,000. The value of the discount was one third of the bill, to be applied after other reliefs. As these were a temporary measure, the government expected billing authorities to use their discretionary relief powers in accordance with the guidance in appendix 3.This also outlined the types of retail covered.

As the discounts were subject to state aid rules larger businesses with multiple outlets would not qualify. The business rates team had so far identified over 300 businesses that would qualify for this relief and it would be applied to the 2019/20 bills when they were issued in March. 

The Leader wished to thank officers for their hard work involved in facilitating the schemes. Whilst these schemes represented a “sticking plaster” to some degree he would welcome a review of business rates as a whole in order to more fairly assess high street and online retailers.

RESOLVED THAT

1.    a business rates retail discount scheme for 2019/20 and 2020/21 be approved in line with Government funding, detailed guidance in appendix 3

2.    the local discretionary revaluation support scheme for 2019/20 and 2020/21 be approved in accordance with section 3 of this report and appendix 2

3.    the Executive Director Finance and Assets, in consultation with the Cabinet Member Finance, be authorised to set the percentage relief level for local revaluation support in respect of 2019/20 and 2020/21 as detailed in section 3.5 of this report.

4.    the continuation of the Supporting Small Businesses Relief Scheme be approved until the scheme is ended in accordance with the Government guidance and appendix 2

5.    Due to the volume of cases, 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.