Issue - items at meetings - Business Rates Retention Forecast for 2014/15

Report of the Executive Director for Finance & Resources (to be circulated separately).

RESOLVED:

(1)               That the agreement of the final business rates forecast and the NNDR1 2014/15 form be delegated to the Executive Director of Finance & Resources in consultation with the Chair of this Committee for the reasons given in paragraph 1.2.

(2)               That it be noted based on the latest data the amount forecast to be received by the council in 2014/15 from its share of local business rates and Section 31 compensation grants is £54.765m which is the same as the forecast used in the December budget update report.

(3)               That any underspend on the current discretionary business rates scheme identified in paragraph 3.20 is used to fund the one-off review of the compiled rating list as set out in paragraphs 3.21 and 3.22 be agreed;

(4)               That a review is also undertaken of the current discretionary scheme now that there is a significant overlap between our scheme and proposals announced in the Autumn Statement and revised proposals are brought back to a future meeting of this Committee be agreed; and

(5)               That it be noted the business rates computer software system will need to be replaced during 2014/15 as Civica will cease supporting the current system for the reasons given in paragraph 3.25 and provision will need to be made in the 2014/15 budget to fund a new system and the one-off costs of implementation.

102.1    The Executive Director of Finance & Resources introduced the report concerning the Business Rates Retention Forecast for 2014/15 and stated that the authority was charged with agreeing the business rate tax base; the report set out the position and requested delegated authority to allow the Executive Director of Finance & Resources to agree the formal return. The approach was the same as taken the previous year, and some of this information had appeared as part of the budget update earlier in the year. There was a changed pattern to appeals this year that reflected that the challenge in undertaking the forecast and the uncertainty of the appeals in the forecast.

102.2    Councillor Littman welcomed the report, and stated that whilst not all the details were in the report he was confident to delegate this to the Executive Director of Finance & Resources.

102.3    Councillor A. Norman extended her thanks to the work of Officers, and stated that the prospects for the next financial year and beyond looked good. It could be seen that Central Government had listened to concerns about the current appeals process; the reforms would help in planning, and measures from the Chancellor would help to boost the local economy. It was noted that empty properties were now covered by a national scheme; the use of the underspend to fund work was welcomed, and some clarification was sought in relation to the discretion scheme and the underspend funds.

102.4    Councillor Hamilton noted that there would be no benefit this year from extra income due to the safer net grant. It was positive to hear that there would be some small business rate reduction, but asked for clarification on the length of time the safety net grants would be used.

102.5    The Head of Strategic Finance & Procurement explained that a year ago it had been agreed to set aside funds for future appeals in the 2013/14 budget only. The Council had been told that they would receive 60% of the funds this financial year and the remaining 40% when the final returns were done in September.

102.6    The Chair added that the support for small businesses was needed, but it was vital there was assurance in the budget. Following on from this the Head of Strategic Finance & Procurement added that the Valuation Office had provided data on appeals to the end of September 2013 showing that the total amount of rateable value under appeal had increased; however, this was not so significant to change the forecast for the next year. It was also added that the some administration costs that related to changes from the Autumn Statement would be compensated to local authorities.

102.7    Councillor G. Theobald stated that he had written to Ministers with his concerns in relation to the Valuation Office, and the Government were now undertaking work to look at the agency in more depth. He added that he welcomed the report and changes which would put the authority in a better position.

102.8    RESOLVED:

(1)         That the agreement of the final business rates forecast and the NNDR1 2014/15 form be delegated to the Executive Director of Finance & Resources in consultation with the Chair of this Committee for the reasons given in paragraph 1.2.

(2)         That it be noted based on the latest data the amount forecast to be received by the council in 2014/15 from its share of local business rates and Section 31 compensation grants is £54.765m which is the same as the forecast used in the December budget update report.

(3)         That any underspend on the current discretionary business rates scheme identified in paragraph 3.20 is used to fund the one-off review of the compiled rating list as set out in paragraphs 3.21 and 3.22 be agreed;

(4)         That a review is also undertaken of the current discretionary scheme now that there is a significant overlap between our scheme and proposals announced in the Autumn Statement and revised proposals are brought back to a future meeting of this Committee be agreed; and

(5)         That it be noted the business rates computer software system will need to be replaced during 2014/15 as Civica will cease supporting the current system for the reasons given in paragraph 3.25 and provision will need to be made in the 2014/15 budget to fund a new system and the one-off costs of implementation.