Decision - Application for Discretionary Rate Relief on the grounds of Hardship

Decision details

Application for Discretionary Rate Relief on the grounds of Hardship

Decision Maker: Cabinet Member - Regulatory, Compliance and Corporate Services

Decision status: Recommendations Approved

Is Key decision?: No

Is subject to call in?: Yes

Purpose:

This report seeks approval to reject the business ratepayer's application for discretionary rate relief on the grounds of hardship under the provisions of section 49 of the Local Government Finance Act 1988.

 

Decision:

Decision:

 

That the application for discretionary rate relief be rejected on the grounds of hardship received from ASI Industries Ltd for the financial year 2018-2019 amounting to £21,023.45.

 

The discretionary hardship relief applied for was in respect of the premises 38-42 Westway, Maghull, L31 0AB.

 

The original application was for an amount of relief £36,000, however, since the application was made the rateable value of the property has been amended resulting in the liability for the financial year 2018/2019 being reduced to £21,023.45.  The ratepayer has confirmed that the application is for 100% relief for the financial year 2018 -2019 which amounts to £21,023.45.

 

Reason for the Decision:

 

ASI Industries Ltd has leased the property 38-42 Westway, Maghull, Liverpool, L31 0AB since 1st December 2017 and began trading as members only health and fitness club on 15th March 2018.

 

Whilst the Council accept that the applicant is experiencing financial difficulties, hardship relief is not designed to support the start-up costs of a business.

The business does not provide a particularly unique service as there are several other businesses in the area offering similar facilities.

 

Under rate retention 99% of discretionary hardship relief must be borne by the local Council Tax Payers, 1% by the Fire Authority.

 

Alternative Options Considered and Rejected:

 

The ratepayer had applied for discretionary rate relief on the grounds of hardship in respect of the financial year 2018-2019 amounting to £21,023.45.

 

The discretionary hardship relief can be refused or a different percentage of relief granted, as shown in the table below:-

 

                                      

 

25% Relief

50% Relief

75% Relief

100% Relief

Gross Increase in Revenue Expenditure

£5255.86

£10,511.73

£15767.59

£21,023.45

 

 

 

 

 

Funded by Sefton funded Resources 99%

£5203.30

£10406.61

£15609.91

£20813.22

 

 

 

 

 

Funded by Fire Authority 1%

£52.56

£105.12

£157.68

£210.23

 

 

 

 

 

 

Publication date: 07/02/2019

Date of decision: 07/02/2019

Effective from: 15/02/2019

Accompanying Documents: