Agenda item

(CSP: MEC & MEC1)

Purpose: To update the approach for awarding the new 2017 Discretionary Rate Relief for 2018/19 and 2019/20.

Resolved that a revised Discretionary Rate Relief Policy (highlighted at Appendix D) be approved. This is to increase the amount of relief awarded from 35% to 50% for 2018/19 and from 15% to 25% in 2019/20, and to make the award automatic rather than upon application. This will reduce even further the burden of business rates to those most affected by the increase in charges.

The reason for the above is to ensure that the allocation of government funding is fully utilised for businesses who saw the largest increases in their bills as a result of the 2017 revaluation.

This decision is not subject to call in as:

·      a delay in implementing the decision could compromise the Council's position.

therefore it will be implemented immediately.

(Councillor Jeff Brooks declared an interest in Agenda Item 13 by virtue of the fact that he operated a business in West Berkshire, but reported that, as his interest was a personal or an other registrable interest, but not a disclosable pecuniary interest, he determined to remain to take part in the debate).

(Councillor Graham Jones declared an interest in Agenda Item 13 by virtue of the fact that he operated a business in West Berkshire, but reported that, as his interest was a personal or an other registrable interest, but not a disclosable pecuniary interest, he determined to remain to take part in the debate and vote on the matter).

The Executive considered a report (Agenda Item 13) concerning the approach for awarding the new 2017 Discretionary Rate Relief for 2018/19 and 2019/20.

Councillor Dominic Boeck explained that in 2017 the Government introduced a new Discretionary Relief Scheme. This was aimed at those organisations who were facing the largest increases as a result of the 2017 Business Rates revaluation. Small to medium sized enterprises with a high increase could apply for this rate relief. This proposed update to the Policy (outlined within paragraph 5.3 of the report) would include a set of new increased relief values which would provide further support for businesses that the Council believed contributed to the local economy.

Councillor Lee Dillon turned to the Policy document at Appendix D. He pointed out that there was no mention of support that could be provided to high street retailers who were facing difficulties, with competition from online retailers a significant factor. The payment of business rates should apply equally to both types of retailer. He queried what assistance was available to high street retailers as local authorities were permitted to apply local requirements to this Policy.

Councillor Boeck gave thanks for these comments. This was something he would be considering with officers.

RESOLVED that a revised Discretionary Rate Relief Policy, highlighted at Appendix D – Section 8.3, be approved. This would increase the amount of relief awarded from 35% to 50% for 2018/19 and from 15% to 25% in 2019/20. The award would be made automatically rather than upon application. This would reduce even further the burden of business rates to those most affected by the increase in charges.

The reason for the above was to ensure that the allocation of government funding was fully utilised for businesses who saw the largest increases in their bills as a result of the 2017 revaluation.

Other options considered:

·         Changing one of the criteria could have meant more businesses qualifying for the relief but this would appear to negate the aims of the scheme. For example, raising the rateable value limit to £200,000 could mean large organisations qualifying when the scheme was aimed at small and medium enterprises or lowering the limit of increase from £600 to £300 would have gone against the principles of the new supporting small businesses scheme.

·         It was therefore considered the best option to further assist those businesses that already qualified under the present criteria.