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100% Business Rates Retention Pilot

 

 

Meeting: 20/09/2017 - Policy and Resources Committee (Item 70)

70 100% Business Rates Retention Pilot

Additional documents:

Minutes:

The Director of Finance and Business Improvement made a presentation to the Committee about the Government’s pilot scheme for 100% Business Rates Retention. The presentation outlined the following key points:

 

  • The Government had announced a pilot for 100% Business Rates retention, which included two tier areas, for 2018/19.

  • Kent local authorities collectively met the criteria for participating in the pilot.

  • If Kent was chosen as a pilot, there was a potential financial benefit to authorities in the county for 2018/19.

  • Maidstone Borough Council were already part of a Business Rates Pool across Kent, however the pool excluded Sevenoaks and Dover District Councils and Medway Council.

  • The Business Rates retention would be retention of 100% of the growth in Business Rates, not 100% of the Business Rates collected in the area.

  • The main financial risk to the Council of being part of the pilot was that it would have to share the cost of negative growth in any authority forming part of the pilot.

 

In response to a question from a member of the Committee, the Director of Finance and Business Improvement explained that it was possible for a growth fund to be set up as part of the rates retention pilot. Such a fund would enable spending on projects and infrastructure that would enable greater business rates growth or lessen costs to member authorities due to growth in the area.

 

RESOLVED: That

 

1)  The Department of Communities and Local Government invitation to take part in a 100% Business Rates Retention pilot for the financial year 2018/19 is noted.

2)  The benefits and risks associated with a joint proposal from Kent authorities to take part in the pilot are noted.

 

3)  Delegated authority is granted to the Director of Finance and Business Improvement, in consultation with the Chairman of the Policy and Resources Committee, to sign off a joint Kent proposal for a 100% Business Rates Pool, together with the associated governance arrangements, on behalf of Maidstone Borough Council.

 

Voting: Unanimous