Issue - meetings

Report of the Head of Corporate Resources

Further to Minute No. 19 of the meeting of the Cabinet held on 21 June 2018, the Council considered the report of the Head of Corporate Resources in relation to the Locally Administered Discretionary Revaluation Relief Scheme for 2018/19 for businesses in Sefton that have had a significant increase in their Business rate liability as a result of the Government’s 2017 revaluation.

It was moved by Councillor Lappin, seconded by Councillor Maher and

RESOLVED: That:

(1)            the parameters of the discretionary revaluation relief scheme for 2018/19, 2019/20 and 2020/21 as set out in Annex A to the report be agreed subject to consideration of any consultation responses received from major preceptors and the combined authority;

(2)            the Head of Corporate Resources be granted delegated authority to determine the detailed application and administration of the local discretionary revaluation relief for 2018/19, 2019/20 and 2020/21 subject to the parameters set out in Annex A to the report; and

(3)            a review of the discretionary rate relief scheme for 2018/19, 2019/20 and 2020/21 be agreed and reported to Cabinet Member for Regulatory, Compliance and Corporate Services following the end of each year.

Report of the Head of Corporate Resources

The Cabinet considered the report of the Head of Corporate Resources requesting it to consider and recommend to Council the basis for the Locally Administered Discretionary Revaluation Relief Scheme for 2018/19 and beyond for businesses in Sefton that have had a significant increase in their Business rate liability as a result of the Government’s 2017 revaluation.

Decision Made:  That:

(1)            the parameters of the discretionary revaluation relief scheme as set out in Annex A, to the report for consultation with the Council’s major preceptors and the combined authority, be agreed;

(2)      the outcome of the review of the 2017/18 discretionary revaluation relief scheme as set out in Section 2 of the report, be noted;

(3)      Council be commended  to agree the parameters of the discretionary revaluation relief scheme for 2018/19, 2019/20 and 2020/21 as set out in Annex A of this report subject to consideration of any consultation responses received from major preceptors and the combined authority;

(4)      Council be commended to grant delegated authority to the Head of Corporate Resources to determine the detailed application and administration of the local discretionary revaluation relief for 2018/19, 2019/20 and 2020/21 subject to the parameters set out in Annex A; and

(5)      Council be commended to agree that a review of the discretionary rate relief scheme for 2018/19, 2019/20 and 2020/21 be reported to Cabinet Member for Regulatory, Compliance and Corporate Services following the end of each year.

Reasons for the Decisions:

The Council is required to approve a local business rates revaluation relief scheme for 2018/19, 2019/20 and 2020/21 in order to distribute the available government grant to local businesses.

Alternative Options Considered and Rejected:

The alternative options would be

•         Not to make available discretionary support in 2018/19 and beyond to businesses affected by the Business Rates Revaluation of 2017.  Such course of action would fail to support our local businesses or utilise the extra funding made available to the Council by the Government for this purpose.

•         To replicate the 2017/18 principles and award relief to all eligible businesses with a rateable value of up to £200,000. However, this would not address the reduction in funding in 2018/19 and the fact that many of the large businesses rejected the awards in 2017/18 due to state aid rules. This in turn could lead to a second billing exercise and additional administration costs for the Council.

•         To require Council to approve the detailed scheme parameters on an annual basis. This would delay the distribution of the available funding to eligible businesses.