Issue - items at meetings - Business Rates Retention forecast 2016/17

Report of the Acting Director of Finance & Resources (copy attached).

That the Committee:

1)            Note that the amount forecast to be received by the council in 2016/17 from its share of local business rates and section 31 (Local Government Act 2003) compensation grants is £56.460m, based on the latest data. This is £0.202m below the forecast used in the December 2015 budget update report.

2)            Agree the NNDR1 2016/17 form at Appendix 1.

3)            Note the future changes to the business rates retention scheme outlined in paragraphs 3.17 and 3.18.

104.1    The Committee considered a report of the Interim Executive Director for Finance & Resources in relation to Business Rates Retention Forecast 2016/17. The Department for Communities and Local Government (‘CLG’) issued the NNDR1 2016/17 form on 31 December 2015, which reported the estimated business rates expected to be collected by the council next year, and this report set out the basis upon which the form had been completed. The report sought approval of the NNDR1 form so it could be submitted to CLG and the Fire Authority by 31 January 2016 as required.

104.2    Councillor Sykes asked questions in relation to charity relief of business rates and it was agreed that a full response would be circulated to the Committee after the meeting.

104.3    In response to Councillor Janio it was confirmed by Officers that an assessment of the Council Tax Base was made each year to ensure that it took account of potential risk and this was factored into the budget setting process each year.

104.4    Councillor Mac Cafferty asked specific questions in relation to Business Rate appeals; in response Officers explained that a reasonable provision was set aside for appeals; in terms of other authorities the numbers were largely the same nationally. It was added that all authorities would need to make similar judgements and ensure provision was identified for appeals.

104.5    The Chair added that the position from Central Government was that the Council would receive 100% business rate retention; however, the lack of clarity around when this would happen created uncertainty.

104.6    Councillor G. Theobald noted his view that it was likely there would be more assessments in the south-east and this would likely lead to more appeals; however, these appeals would only be against the additional income through assessment.

104.7    The Chair then put the recommendation to the vote:

104.8    RESOLVED: That the Committee:

1)     Note that the amount forecast to be received by the council in 2016/17 from its share of local business rates and section 31 (Local Government Act 2003) compensation grants is £56.460m, based on the latest data. This is £0.202m below the forecast used in the December 2015 budget update report.

2)     Agree the NNDR1 2016/17 form at Appendix 1.

3)     Note the future changes to the business rates retention scheme outlined in paragraphs 3.17 and 3.18.