Decision details

Application for Discretionary Relief for non-profit making organisations

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 the award of discretionary top-up 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 Merseyside Expanding Horizons Ltd for 20% discretionary rate relief for the financial year 2022-2023 amounting to £1,894.40 be rejected.

 

 

  Reasons for the Decision(s):

 

Merseyside Expanding Horizons Ltd is an Industrial and Provident Society, registered with the Financial Conduct Authority with registration number 28914R. In line with other registered charities they are entitled to 80% mandatory rate relief in respect of their business rates liability at 116-118 The Palatine, Strand Shopping Centre, Bootle, L20 4SW.

 

The organisation is also already receiving 50% Retail, Hospitality and Leisure relief for the year 1 April 2022 to 31 March 2023; awarded to help businesses and organisations in those sectors recover from the COVID19 pandemic. Therefore its net business rates liability after reliefs is 10% of the total business rates liability of £18,944.00 which equates to £1,894.40 for 1 April 2022 to 31 March 2023.

 

Through their discretionary rate relief application form, Merseyside Expanding Horizons Ltd has advised that, if relief was not awarded, then they would not be able to continue with the provision of the Community Hub, Youth Employment Hub, and enterprise support in Bootle as they do not currently have any specific funding to do this. Instead they would continue to deliver their current services to Sefton residents on an outreach basis.

 

However, through scrutiny of the organisation financial accounts and projections, it is considered that not awarding discretionary rate relief would have no significant impact on the organisation’s finances given its level of reserves and income. Furthermore, no unique or specific service has been identified that justifies the award of additional rate relief.

 

It should be noted that, in a previous discretionary rate relief application for the financial year 2021-2022, Merseyside Expanding Horizons Ltd also stated that the organisation would not be able to continue with the provision of services in Bootle as they did not have any specific funding to do so and would instead deliver their services to Sefton residents on an outreach basis. Discretionary rate relief was not awarded on that occasion however the organisation continues to operate and deliver services from 116-118 The Palatine, Strand Shopping Centre, Bootle, L20 4SW.

 

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

 

 

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

 

Merseyside Expanding Horizons Ltd has applied for 20% discretionary rate relief to reduce the business rates liability at 116-118 The Palatine, Strand Shopping Centre, Bootle, L20 4SW for the period 1 April 2022 to 31 March 2023.

 

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

 

2022-2023

1% Relief

2% Relief

5% Relief

10% Relief

Reduction in Non-Domestic Rates Income

£189.44

£378.88

£947.20

£1,894.40

 

 

 

 

 

Funded by Sefton Council 99%

£187.55

£375.09

£937.73

£1,875.46

 

 

 

 

 

Funded by Fire Authority 1%

£1.89

£3.79

£9.47

£18.94

 

Publication date: 21/09/2022

Date of decision: 21/09/2022

Effective from: 30/09/2022

Accompanying Documents: