Issue - meetings

To consider a report of the Executive Councillor (Corporate, Customer & Community Services)

In light of important announcements contained in the Chancellor’s Autumn Statement on 5 December 2013, further consideration of the implications for Stockport and the content of this report are required. Therefore, this report has been marked ‘to follow’.

Officer contact: Alison Blount, 0161 474 5107, alison.blount@stockport.gov.uk

The Executive Councillor (Corporate, Customer & Community Services) submitted a report (copies of which had been circulated) inviting the Executive Meeting to consider and agree a scheme of discretionary business rate discounts for 2014/15. The proposed scheme would continue discounts available in the current year and would incorporate changes that had arisen as result of the Chancellor’s Autumn Statement and the impact on Business Rates Relief. The Scheme also included relief for certain businesses moving into or expanding within the borough, or seeking to make improvements to their premises.

RESOLVED – That, in relation to the Council’s Business Rates Discounts and Exemptions:

(i)            the mandatory reliefs outlined at paragraph 1.3 and awarded under s47 of the Local Government Finance Act 1988 be adopted;

(ii)          an initial Commercial Properties (Business Rates off-set) scheme be implemented as outlined in section 6 of the report and described in appendix 4;

(iii)         the Local Business Rates Relief Scheme be adopted to include support for 

•      large businesses which were new to the Borough subject to the limiting criteria to be drawn up by the Economic Development team as outlined in section 7 of the report;

•      businesses within the Borough undergoing significant expansion subject to limiting criteria to be drawn up by the Economic Development team as outlined in section 7 of the report;

•      improvements made to existing business in the Borough subject to the limiting criteria outlined at appendix A and limited to a maximum annual budget of £40,000 as outlined in section 6 of the report and described at appendix 4;

•      organisations and initiatives which are considered to be essential for the Council to achieve its priorities as outlined at paragraph 8.2 of the report.   

(iv)         support be given for the principle of converting grants and awards made by the Council into Discretionary rate relief where possible and that officers be asked to prepare a detailed scheme detailing the approach for individual grants and awards as outlined in paragraph 8.1 of the report;

(v)          support be continued for entitlement to reliefs as outlined in the following sections of the report:

•           Community Amateur Sports Clubs (section 4.3.5)

•           Charities (section 4.4.3)

•           Village shops (section 4.5.2)

•           Not for profit organisations (section 4.6.4).

To consider a report of the Corporate Director, Corporate and Support Services.

This report reviews the discounts in Business Rates liability which are currently available, in particular looking at the expenditure on mandatory and discretionary discounts during 2012/13.  The report further considers the potential to extend the range of discretionary discounts available and recommends to Members circumstances where it may be appropriate to do so. Members are asked to agree the discretionary discount scheme for 2014/15.       

The Scrutiny Committee is invited to consider the following recommendations which will be considered by the Executive at its meeting on 17 December 2013:

1.         That an initial Commercial Properties (Business Rates off-set) scheme be implemented as outlined in section 6 and described in appendix 4

2.         That the local business Rates Relief Scheme be adopted to include support for 

•           Large businesses which are new to the borough subject to the limiting criteria to be drawn up by the Economic Development team as outlined in section 7 of this report

•           Businesses within the borough undergoing significant expansion subject to limiting criteria to be drawn up by the Economic Development team as outlined in section 7 of this report

•           Improvements made to existing business in the borough subject to the limiting criteria outlined at appendix A and limited to a maximum annual budget of £40K as outlined in section 6 and described at appendix 4

•           Organisations and initiatives which are considered to be essential for the council to achieve its priorities as outlined at section 8.2 of this report.   

3.         That support is given for the principal of converting grants and awards made by the Council into Discretionary rate relief where possible and that offices be asked to prepare a detailed scheme detailing the approach for individual grants and awards. As outlined in section 8.1 of this report.  

4.         That support continues for entitlement to reliefs as outlined

•           CASC’s at section 4.3.5

•           Charities at section 4.4.3

•           Village shop’s at section 4.5.2

•           Not for profit organisations at section 4.6.4

5.         That ARC is awarded 20% top-up relief from the date it becomes entitled to mandatory charity relief. On the basis of the exceptional circumstances outlined at 8.2.2 of the report.

Officer contact Alison Blount   on Tel: 0161 474 5107 or by email on alison.blount@stockport.gov.uk

The Corporate Director for Corporate and Support Services submitted a report (copies of which had been circulated) reviewing the discounts in Business Rates liabilities which were currently available, in particular looking at the expenditure on mandatory and discretionary discounts during 2012/13.  The report further considered the potential to extend the range of discretionary discounts available and recommended circumstances where it may be appropriate to do so.

It was reported that the Executive would consider the report at its meeting on 17 December 2013.

The following comments were made/ issues raised:-

·         The proposals were imaginative whilst at the same time cautious.

·         The danger of local authorities competing to attract new businesses by offering business rate relief and the benefits of having a similar scheme across AGMA or pooling business rates was noted.

·         It was noted that Stockport was one of the first Councils in Greater Manchester to review its Scheme.

RESOLVED – That the report be noted and the Corporate Director for Corporate and Support Services be requested to amend paragraph 8.1.1 of the report to insert the word “Some” at the start of the sentence prior to consideration by the Executive.