Chichester District Council
Issue

Issue - meetings

100% Localisation of Business Rates – Pilot bid

Meeting: 03/10/2017 - Cabinet (Item 418)

418 100% Localisation of Business Rates 2018-2019 Pilot Scheme pdf icon PDF 60 KB

The Cabinet is requested to consider the agenda report and to make the following resolution:

 

That authority be delegated to Chichester District Council’s Chief Executive and Head of Finance and Governance Services following consultation with the Cabinet Member for Finance and Governance Services, to determine whether to submit a bid to the Department of Communities and Local Government (DCLG) for Chichester District Council to take part in the 2018-2019 pilot for 100% business rate retention.

Decision:

RESOLVED

 

That it be approved that authority be delegated to Chichester District Council’s Chief Executive and Head of Finance and Governance Services following consultation with the Cabinet Member for Finance and Governance Services, to determine whether to submit a bid to the Department of Communities and Local Government (DCLG) for Chichester District Council to take part in the 2018-2019 pilot for 100% business rate retention.

Minutes:

The Cabinet received and considered the agenda report.

 

The report was presented by Mrs Hardwick.

 

Mrs Hardwick explained that there was an ongoing trial in unitary authority areas. On 2 September 2017 further bids from two tier and rural authorities were invited. The current system for Business Rate (BR) collection and retention involved allocations between tiered authorities and levies and tariffs based on actual rates collected as against the BR Baseline and as compared against an assessed need.  The current scheme left Chichester District Council (CDC) retaining 20% of any growth in BR and West Sussex County Council (WSCC) retaining 10% of any such growth. The 100% localisation pilot was intended to be fiscally neutral insofar as the Baseline BR level was concerned. Any bid had to offer some form of pay back to central government, whether in the form of giving up grants (Revenue Support Grant and rural grants which were already set to go) or taking on extra commitments. If there was no pay back a tariff would continue to be applied. Under the new regime the West Sussex authorities would retain all anticipated growth in BR (split between tiers in a proportion to be agreed by the relevant authorities).

 

Mrs Hardwick explained that the process was likely to be highly competitive due to the immediate financial benefit to successful authorities. If a West Sussex bid were to be successful there would be a period to determine whether to accept any offer. It was intended that any such offer would be taken to the January 2018 Council meeting if the deadline for acceptance permitted. Alternatively, if required, the urgency provisions would be deployed.

 

Decision

 

The Cabinet voted unanimously on a show of hands in favour of making the resolution as set out below.

 

RESOLVED

 

That it be approved that authority be delegated to Chichester District Council’s Chief Executive and Head of Finance and Governance Services following consultation with the Cabinet Member for Finance and Governance Services, to determine whether to submit a bid to the Department of Communities and Local Government (DCLG) for Chichester District Council to take part in the 2018-2019 pilot for 100% business rate retention.

 


 

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