Decision details

BUSINESS RATES: DISCRETIONARY RATE RELIEF

Decision status: Recommendations Approved

Is Key decision?: Yes

Is subject to call in?: Yes

Decisions:

Adam Broome (Director for Corporate Services) submitted a report reviewing the council’s approach to granting discretionary business rate relief to identify resources to promote growth in the local economy and in the light of new government legislation. The report also contained the outcome of benchmarking with other local authorities. 

 

The content of the report had been considered by the Cooperative Scrutiny Board on 24 July 2013 and a minor alteration to add ‘time limited’ was recommended which had been taken included in recommendation (1).

 

Councillor Lowry (Cabinet Member for Finance) introduced the proposals.  

 

Councillor Penberthy (Cabinet Member for Cooperatives and Community Development) also reported that he was intending to submit a report on the outcome of the review referred to in (6) below, to Cabinet in December 2013 entitled the Civil Society Policy.

 

Alternative options considered and reasons for the decision –

 

As set out in the report.

 

Agreed that –

 

(1)

a ‘ring-fenced’ funding pot is created to provide time limited rate relief to a wider range of businesses that can demonstrate that they provide significant economic benefit to Plymouth (utilising new government legislation that came into effect in April 2013); 

(2)

the appropriateness of discretionary business rate relief provided to individual charities and non-profit-making organisations for 2013/14 is reviewed, ascertaining the contribution that each organisation makes to the city and its residents;

(3)

 

the principle is adopted that all organisations should contribute something towards the cost of their business rates in line with the newly adopted Council Tax Support Scheme that requires all residents to contribute at least 25 per cent towards their Council Tax bill (regardless of circumstances);

(4)

 

as a general principle, the total value of discretionary rates relief given to any single organisation is capped to 75 per cent of the relief provided by the council in 2012/13;

(5)

existing ‘hardship’ relief provided is removed unless supported by a clear business case evidencing how an organisation supports the local economy;

(6)

a wider review is conducted for Cabinet consideration, providing a clear strategy for joining up all financial support and assistance provided by the council to all non-profit making and profit making organisations.

 

 

 

 

 

Publication date: 09/08/2013

Date of decision: 06/08/2013

Decided at meeting: 06/08/2013 - Cabinet

Effective from: 17/08/2013

Accompanying Documents: