Contact your Parish Council
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Policy and Resources Committee |
24 October 2018 |
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100% Business Rates Retention Pilot - Update |
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Final Decision-Maker |
Policy and Resources Committee |
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Lead Head of Service/Lead Director |
Mark Green, Director of Finance and Business Improvement |
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Lead Officer and Report Author |
Mark Green, Director of Finance and Business Improvement |
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Classification |
Public
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Wards affected |
All
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Executive Summary |
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The Council is due to receive additional business rates income, initially estimated as £640,000, for one year only in 2018/19 as a result of its participation in the Kent and Medway 100% Business Rates Retention pilot. Policy and Resources Committee agreed 13 projects for funding from this additional income at its meeting on 28 March 2018. This report describes progress with these projects to the end of quarter 2 of 2018/19. |
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This report makes the following recommendations to this Committee: |
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That progress with the Business Rates Retention pilot projects be noted. |
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Timetable |
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Meeting |
Date |
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Policy and Resources Committee |
24 October 2018 |
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Further progress reports will be submitted to the Committee each quarter. |
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100% Business Rates Retention Pilot - Update |
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INTRODUCTION AND BACKGROUND
1.1 Kent County Council, Medway Council, and all twelve districts within the Kent county area successfully applied last year to become a 100% Business Rates Retention pilot. This means that the Government will allow 100% of business rates growth to be retained within the local area. The consequent financial gain across the whole area was estimated to be £24.7 million in 2018/19, to be split 70:30 between a Financial Sustainability Fund and a Housing and Commercial Growth Fund.
Financial Sustainability Fund
1.2 Maidstone’s share of the Financial Sustainability Fund (FSF) was estimated as being £640,000. Officers developed proposals for a number of discrete projects which would meet the criteria for the FSF and Policy and Resources Committee agreed thirteen projects at its meeting on 28 March, as follows:
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£000 |
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Tranche 1 |
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Housing First and Rough Sleepers |
80 |
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Regeneration Opportunity Areas |
80 |
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Property Asset Review |
55 |
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Members' Community Grant |
60 |
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Tranche 2 |
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Predictive analytics and preventing homelessness |
80 |
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Housing Delivery Partnership |
40 |
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Go Green, Go Wild |
90 |
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Maidstone Business capital of Kent – marketing strategy |
35 |
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Staplehurst Village Centre Masterplan |
15 |
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Tranche 3 |
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Maidstone Housing Design Guide |
40 |
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Electric vehicle charging points |
20 |
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Bus Station improvement - feasibility study |
10 |
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Data analytics for Inclusive Growth |
35 |
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TOTAL |
640 |
1.3 Funding for each tranche is released as soon as it is considered prudent to do so. Current projections indicate that at least £640,000 will be generated from the Pilot so all three tranches of funding have been released.
1.4 Progress to date is set out in Appendix 1. Work has commenced on six of the thirteen projects. In total, £246,000 has been spent or committed.
Housing and Commercial Growth Fund
1.5 The Business Rates
Retention Pilot bid specified that the Housing and Commercial Growth Fund would
be allocated between three clusters of authorities, representing East, North
and West Kent. Decisions about use of the fund are made using the established
leaders’ board arrangements in the respective areas. North Kent leaders
(Dartford, Gravesham, Medway, Swale and Maidstone) have met and considered a
prospectus setting out proposals for use of the Fund. This is currently
awaiting formal sign-off.
2. AVAILABLE OPTIONS
2.1 This report is to
note only.
3. RISKS
3.1 As with any projects, the Business Rates Retention Pilot projects could fail to be delivered, or could be delivered but exceed their budget allocations. This risk is mitigated in several ways. There is a strong project management culture in the Council. Monitoring arrangements have been put in place for all the projects, to ensure that they deliver within budget and to the agreed timetable. Finally, post project reviews will be carried out to evaluate the outcomes and to derive any lessons learned from the projects.
4. CONSULTATION RESULTS AND PREVIOUS COMMITTEE FEEDBACK
4.1 Policy and Resources Committee received an initial report on Business Rates Retention pilot projects at its meeting on 24 January 2018. A draft set of projects was included within the budget proposals considered by the Committee at its meeting on 14 February 2018. The Committee requested that further consideration be given to the priority and scope of the projects. An informal briefing was held on 8 March, to which all councillors were invited, at which project sponsors described their projects and answered questions on them. The Committee then formally agreed thirteen projects at its meeting on 28 March.
5. NEXT STEPS: COMMUNICATION AND IMPLEMENTATION OF THE DECISION
5.1 Progress with the pilot projects is being reported to Policy and Resources Committee on a quarterly basis during the course of the year.
6. CROSS-CUTTING ISSUES AND IMPLICATIONS
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Issue |
Implications |
Sign-off |
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Impact on Corporate Priorities |
The projects described in this report support the Council’s strategic plan objectives. |
Section 151 Officer & Finance Team |
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Risk Management |
See section 3 above. |
Section 151 Officer & Finance Team |
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Financial |
Set out in report. |
Section 151 Officer & Finance Team |
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Staffing |
None. |
Section 151 Officer & Finance Team |
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Legal |
The Council has a statutory obligation to set a balanced budget. Allocation of resources in the way set out in this report supports achievement of a balanced budget. |
Legal Team |
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Privacy and Data Protection |
None. |
Section 151 Officer & Finance Team |
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Equalities |
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Section 151 Officer & Finance Team |
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Crime and Disorder |
None. |
Section 151 Officer & Finance Team |
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Procurement |
Procurement of services in the course of delivering the projects will be in accordance with the procurement provisions within the Council’s constitution. |
Section 151 Officer & Finance Team |
7. REPORT APPENDICES
The following documents are to be published with this report and form part of the report:
· Appendix 1: Project updates.
8. BACKGROUND PAPERS
There are no background papers.