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 between a Financial Sustainability Fund and a Housing and Commercial Growth Fund.

1.2     Policy and Resources Committee on 24 January agreed the following  criteria for use of Maidstone’s share of the Financial Sustainability Fund(FSF), estimated as being £640,000.

Optimising impact of FSF expenditure

In order to achieve maximum impact from the FSF, it was proposed that it be focused on a small number of discrete projects, distinct from existing agreed revenue and capital expenditure. A greater number of projects would risk spreading management input into individual projects too thinly, and would lead to relatively small budgets for each project, thus limiting their potential to make an impact.

Alignment with strategic objectives

The projects will respond to the Council’s corporate priorities. In general, therefore, they will promote social, economic and environmental wellbeing.  They are likely to relate to one or more of the three action areas – A Home for Everyone, Town Centre Regeneration and Clean, Safe and Green. They must also be consistent with relevant Council strategies such as the Economic Development Strategy. Performance against corporate priorities is evaluated regularly through public engagement, eg through Resident Surveys, so it would be appropriate to consider projects that residents are likely to see as improving their quality of life.

Leveraging benefit of expenditure

The FSF provides a relatively limited sum of money, and is only available on a one-off basis. Accordingly, it is important that any investment of the FSF exploits the opportunities for leveraging additional income, either by creating a future income stream or by attracting a matching contribution in cash or through partnership working, eg with external organisations like central government or Kent County Council.

1.3     Officers developed proposals for a number of discrete projects which would meet the criteria set out above.  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.

1.4     To assist with prioritisation, the projects have been divided into three tranches, as follows.

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

7.        REPORT APPENDICES

The following documents are to be published with this report and form part of the report:

8.        BACKGROUND PAPERS

There are no background papers.