Agenda item

Report of the Interim Deputy Chief Executive (Resources and Transformation)

Decision made: (Unanimously)

1.    Approval in principle to the Council’s participation in the Lancashire bid to be a pilot of 75% Business Rate Retention in 2019/20 subject to all the issues raised with in the report particularly those contained within paragraphs 3.1, 8.2 and 11.2 being met satisfactorily.

2.    That due to the timescales set, approval to endorse the use of urgent powers to approve submission of the bid by the Section 151 Officer (or Deputy Section 151 Officer in her absence) signing off the decision in consultation with the Cabinet Member (Finance).

The Leader of the Council accepted the following item of urgent business as the bid for the possible participation in a Business Rates Retention pilot scheme in 2019/20 had to be submitted to Government by 25 September 2018.

The Cabinet considered the report of the Interim Deputy Chief Executives (Resources and Transformation) that set out the case for participation in the pilot scheme. The proposal was that a substantial element of government funding of local authorities would be received by membership of a 75% Business Rates Retention Pilot pool in 2019/20.

It was noted that, should the Council enter such a pool, the financial benefit would not be gained until the rates had been collected, which would affect 2020/21 budgets through the transfer of surplus deficit from 2019/20.

The exact membership of the pool was still to be determined however, the guidance suggested that the pool should cover the economic areas with the current proposal for Lancashire being that the Lancashire Business Rates Pool member authorities, plus Blackburn with Darwen, Blackpool, Lancaster, Preston and the Lancashire Fire and Rescue Service could be considered.

The deadline for submitting a bid was 25 September 2018 and as the decision sat outside our policy framework would require a formal Council decision, As the next Council meeting is scheduled to meet on 26 September 2018, Cabinet were asked to consider the proposal as an urgent decision was needed by the Council on this matter to meet the deadline set by Government.

The Cabinet were unanimous in their decision to strengthen the Council’s response to ensure that they did not lose out financially under the new arrangements.

Decision made: (Unanimously)

1.    Approval in principle to the Council’s participation in the Lancashire bid to be a pilot of 75% Business Rate Retention in 2019/20 subject to all the issues raised with in the report particularly those contained within paragraphs 3.1, 8.2 and 11.2 being met satisfactorily.

2.    That due to the timescales set, approval to endorse the use of urgent powers to approve submission of the bid by the Section 151 Officer (or Deputy Section 151 Officer in her absence) signing off the decision in consultation with the Cabinet Member (Finance).

Reason(s) for the decision:

The deadline for submitting an application from Lancashire councils to the Government is 25 September 2018. Though specific details of the bid are yet to be finalised, agreement in principle is needed at this stage in order to continue as a member of the processed pool. This decision is made on the understanding that the Council will be in no worse a financial position, in entering the pilot, that what it would have been if we continue with our existing business rates retention pilot for Lancashire, and also if we take into account the funding principles for Revenue Support grant. Early consideration of the figures shows that there is sufficient funding for the Council to retain its current position, with Lancashire as a whole also benefitting from the revised pooling arrangements. If the Council is not a member of a pool in 2019/20, it will lose the financial benefit of pool membership it has achieved from 2016/17 onwards.