Issue - meetings

Report of the Head of Corporate Resources to follow

The Committee considered the report of the Head of Corporate Resources on the Discretionary Rate Relief for Business Rates following the Revaluation of 2017; that detailed the process of adopting the powers provided by the Government for distributing Business Rates Locally Administered Discretionary Revaluation relief and setting out guidance for the award of relief to organisations that have had a significant increase in their Business Rates liability consequential from the Government’s revaluation effective from 2017; and providing details of other Government announcements regarding discretionary rate relief for Local Newspapers, Public Houses and small businesses (‘Support to Small Business’) encountering a large increase in Business Rates.

The report indicated that the Government determined to revalue Business Rates properties taking effect from 2017 based on 2015 values; that the review was not intended to raise additional revenue, but rather to update rental values for properties and that it was therefore intended to be ‘fiscally neutral’ nationally. However regionally and at an individual taxpayer level the effect varied, such that some Business Rate payers had encountered significant increases and decreases and that a system of transitional relief applied such that the gains and losses to individual taxpayers were limited in any one year and introduced over a five year period; the Government had recently determined that Local Authorities could also make available additional discretionary relief to properties affected by significant increases in their Business Rates via a £300m fund which it had introduced for this purpose and announced as part of the Spring Budget ;and that Sefton’s allocation of the Government funding for discretionary rate relief was expected to be £945,838 spread across the next 4 years.

Attached as Appendix A to the report was the draft guidance in respect of the Locally Administered Discretionary Revaluation Relief scheme that was to be considered by Cabinet on 27 July 2017.

Members asked questions/raised issues on the following matters:-

·       Would there be similar schemes across the Liverpool City Region? – The Government’s broad view on the parameters for applicants was that the formula for grant allocations related solely to increases for those properties with a rateable value of less than £200,000 with an increase of 12.5% or more. There is a requirement to consult major Precepting Authorities(Merseyside Fire and Rescue Service and Merseyside Police and Crime Commissioner) and the Combined Authority regarding the scheme.

·       Supporting Small Business Relief - It is likely that in the region of 53 businesses are affected in Sefton and we have already contacted them to provide advice about this scheme and will be contacting them again as and when the Government provides more information about the scheme. Should any ratepayer subsequently be successful in challenging their new rateable value, due to a mistake made by the Valuation Office Agency when compiling the rating list, the level of any discretionary rate relief provided by the Council would be adjusted accordingly. 

·       How the Council’s Revenue Service liaised with the Planning and Licensing Services to be advised of changes to properties. There is  ...  view the full minutes text for item 7