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COUNCIL

26 February 2020

 

Business Rates Retail Relief

 

Final Decision-Maker

Council

Lead Head of Service

Stephen McGinnes, Mid Kent Services Director

Lead Officer and Report Author

Sheila Coburn, Head of Revenues and Benefits Partnership

Classification

Public

Wards affected

All

 

Executive Summary

 

The Council approved a Retail Relief Policy funded by Central Government for the years 2019-2020 and 2020-2021.  In January 2020 the Government announced that

it would extend the value of the Retail Discount from one third of the Business Rates bill to 50% in 2020/21.  The Retail Relief Policy has been changed to reflect this.

 

Purpose of Report

 

The purpose of this report is for Council to adopt the revised Retail Relief Policy in Appendix 1.

 

 

 

This report makes the following recommendations to this Committee:

That the amended Retail Relief Policy in Appendix 1 is adopted.

 

 

 

Timetable

Meeting

Date

Council

26 February 2020



Business Rates Retail Relief

 

1.       CROSS-CUTTING ISSUES AND IMPLICATIONS

 

 

Issue

Implications

Sign-off

Impact on Corporate Priorities

We do not expect the recommendations will by themselves materially affect achievement of corporate priorities. The initial scheme has supported businesses and jobs – and this will incrementally help to reduce cost and therefore risk for small businesses

 

Sheila Coburn, Head of Revenues and Benefits Partnership

Cross Cutting Objectives

No impact

 

Sheila Coburn, Head of Revenues and Benefits Partnership

Risk Management

Already covered in the risk section

Sheila Coburn, Head of Revenues and Benefits Partnership

Financial

None as the amount of relief awarded will be fully met by Central Government

 

 

 

Section 151 Officer & Finance Team

Staffing

We will deliver the recommendations with our current staffing

Sheila Coburn, Head of Revenues and Benefits Partnership

Legal

Relief will be awarded using existing resources Section 47 of the Local Government Finance Act 1988 gives billing authorities discretionary rate relief powers that enable the Council to operate the proposed scheme.

 

Central government will fully reimburse local authorities for the local share of the discretionary relief through a grant under section 31 of the Local Government Act 2003.

 

Mid Kent Services Legal Team

Privacy and Data Protection

There are no consequences arising from the recommendation that adversely affect or interfere with individuals’ rights and freedoms as set out in the Human Rights Act 1988 

Policy and Information Team

Equalities

The recommendations do not propose a change in service therefore will not require an equalities impact assessment

Policy & Information Team

Public Health

 

 

We recognise that the recommendations will not negatively impact on population health or that of individuals

Public Health Officer

Crime and Disorder

No impact

Sheila Coburn, Head of Revenues and Benefits Partnership

Procurement

No impact

Sheila Coburn, Head of Revenues and Benefits Partnership

 

 

 

2.      INTRODUCTION AND BACKGROUND

 

2.1     The Government recognised that changing consumer behaviour presents a

         significant challenge for retailers in our town centres and took action to 

         help the high street evolve.

 

2.2            The Government announced in the Budget in October 2018 that it will

    provide a Business Rates Retail Discount scheme for occupied retail

    properties with a rateable value of less than £51,000 in each of the years 

    2019-20 and 2020-21.

 

2.3            Retail properties are described as those that are wholly or mainly used as  

    shops, restaurants, cafes and drinking establishments.

 

2.4            As this was a measure for 2019-20 and 2020-21 only, the Government did

    not change the legislation around the reliefs available to properties.

 

2.5    The value of the relief was 1/3rd of the net Business Rates bill, after

         mandatory reliefs and other discretionary reliefs have been applied,

         resulting in 456 business benefitting from the award of relief.

 

2.6    The amount of relief awarded for 2019-20 was £1.607 million and the

    anticipated amount for 2020-21 is £2.167 million.

 

2.7    In a Written Ministerial Statement on 27 January 2020 the Government

    announced that it would extend the value of the Retail Discount from 1/3rd   

    of the Business Rates bill to 50% in 2020/21.

 

2.8    It is up to authorities to determine for themselves whether particular  

    properties are eligible for the relief.

 

2.9    Ratepayers will be notified on their Business Rates bills for 2020-2021 of

    the amount of relief given.

 

2.10  Ratepayers that occupy more than one property will be entitled to relief

         for each of their eligible properties, subject to State Aid De Minimis limits.

 

 

 

3.   AVAILABLE OPTIONS

 

3.1     Option 1 – do nothing option. This option would not assist those businesses

        the Government intends should benefit from relief.

 

3.2    Option 2 - award relief in line with Government proposals.

 

 

 

4.        PREFERRED OPTION AND REASONS FOR RECOMMENDATIONS

 

4.1            Option 2 is the preferred option as this Council will be fully compensated

    for any relief given.

 

4.2            Applying Option 2 will mean the relief is awarded in line with the           

    intentions of the Government to assist retailers.

 

 

 

5.       RISK

5.1            In approving a scheme which is limited for a further year, the Council risks

    ratepayers perceiving a disproportionate increase in their rate liability 

    when the scheme ends. 

 

5.2            The restrictions on state aid are complex and are likely to be unfamiliar to

    any small businesses, resulting in an increase in enquiries. 

 

5.3        To mitigate this risk, an explanatory note will be issued to those

    businesses that qualify for Retail Relief

 

 

 

6.       CONSULTATION RESULTS AND PREVIOUS COMMITTEE FEEDBACK

 

6.1      None

 

 

7.       NEXT STEPS: COMMUNICATION AND IMPLEMENTATION OF THE DECISION

 

7.1       Details of the amended Retail Relief will be available on the Council’s 

  Website and the amount of relief awarded will show on Business Rates bills 

  for 2020-21.

 

 

 

8.        REPORT APPENDICES

 

·         Appendix 1: Retail Relief Policy

 

 

9.        BACKGROUND PAPERS

 

MHCLG guidelines  https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/861633/200129_Retail_Discount_Guidance.pdf