Decision details

Application for Discretionary Rate Relief

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

Decision status: Awaiting Implementation

Is Key decision?: No

Is subject to call in?: Yes

Purpose:

This report seeks consideration to approve an award of discretionary rate relief to a non-profit making organisation under the provisions of section 47 of the Local Government Finance Act 1988 (as amended by section 69 of the Localism Act 2011).

 

Decision:

Decision(s):

 

That the application from Conquer Life CIC for 80% discretionary rate relief amounting to £395.81 for the financial year 1 April 2021 to 31 March 2022 and £10,319.32 for the financial year 1 April 2022 to 31 March 2023 be approved.

 

The discretionary rate relief applied for is in respect of the premises known as The Linacre, 46 Linacre Lane, Bootle, L20 5AL.

 

 

Reasons for the Decision(s):

 

Conquer Life CIC has already been providing a valuable service to the young residents of Sefton since 2018 at its previous base in Bootle by increasing employment opportunities, promoting academic success and health and wellbeing whilst also dealing with social issues such as crime, gang culture, inequality, poverty, and deprivation.

 

Conquer Life CIC has recently taken out a 30-year lease of the former Linacre Public House on Linacre Lane and turned it in to a Community Centre for 7–18-year-olds. The property had been vacant for many years prior to Conquer Life CIC’s occupation and had fallen into a state of disrepair.

 

At its previous base, Conquer Life CIC received Small Business Rates Relief therefore no Business Rates were due. At The Linacre, the organisation does not qualify for any mandatory relief therefore is responsible for 100% of the Business Rates liability.

 

The amount of discretionary rate relief being recommended is 80% of the total liability of £13,393.91 from the period of occupation on 18 March 2022 to the end of the current financial year on 31 March 2023. This is in line with mandatory relief given to similar organisations, but who are registered with the Charity Commission.

 

A discretionary rate relief award for 18 March 2022 to 31 March 2023 will go some way to securing the long-term viability of the organisation.

 

Under rate retention, 99% of discretionary relief must be borne by the Council and 1% by the Fire Authority.

 

Alternative Options Considered and Rejected: (including any Risk Implications)

 

Conquer Life CIC has applied for 100% rate relief to reduce their rate liability at The Linacre, 46 Linacre Lane, Bootle, L20 5AL from 4 January 2022, their date of occupation, to 31 March 2023. However, due to The Linacre not being open until 18 March 2022 and in line with the amount of relief awarded to similar organisations, it is recommended that the organisation receives 80% discretionary relief from 18 March 2022 only.

 

The organisation’s Business Rates liability for 18 March 2022 to 31 March 2022 is £494.76 and for 1 April 2022 to 31 March 2023 is £12,899.15. Therefore it is recommended that it receives 80% discretionary rate relief of £395.81 for 18 March 2022 to 31 March 2022 and 80% discretionary rate relief of £10,319.32 for 1 April 2022 to 31 March 2023. The total discretionary rate relief for 18 March 2022 to 31 March 2023 would be £10,715.13.

 

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

 

2021-2022 

25% Relief

50% Relief

75% Relief

100% Relief

 

Reduction in Non-Domestic Rates Income

 

 

£123.69

 

 

£247.38

 

 

£371.07

 

 

£494.76

 

 

 

 

 

Funded by Sefton Council 99%

 

£122.45

 

£244.91

 

£367.36

 

£489.81

 

 

 

 

 

Funded by Fire Authority 1%

 

£1.24

 

£2.47

 

£3.71

 

£4.95

2022-2023 

25% Relief

50% Relief

75% Relief

100% Relief

 

Reduction in Non-Domestic Rates Income

 

 

£3,224.79

 

 

£6,449.58

 

 

£9,674.36

 

 

£12,899.15

 

 

 

 

 

Funded by Sefton Council 99%

 

£3,192.54

 

£6,385.08

 

£9,577.62

 

£12,770.16

 

 

 

 

 

Funded by Fire Authority 1%

 

£32.25

 

£64.50

 

£96.74

 

£128.99

 

 

Publication date: 02/08/2022

Date of decision: 02/08/2022

Effective from: 11/08/2022

Accompanying Documents: