Issue - meetings

To consider a report of the Executive Councillor (Support & Governance)

The Greater Manchester and Cheshire East Business Rates Pool has been invited to pilot a new scheme for the full retention of business rates growth commencing 1 April 2015.  This builds on the existing pooling arrangements and should enable additional income to be retained for the purposes of the pool without impacting on the financial position of each district participating in the pool.

The purpose of this report is to:

•           remind the Executive of the existing district and GM pooling arrangements;

•           provide an outline of the proposed ‘full retention of growth’ scheme; and

•           make recommendations with regard to the new scheme’s endorsement and continued development.

The Executive is recommended to:

·                Endorse and agree the Business Rates retention scheme as set out in the report of 27 March 2015 to the AGMA Executive and Greater Manchester Combined Authority (attached at Appendix One);

·                Delegate authority to the Corporate Director, Corporate and Support Services in consultation with the Executive Councillor, Support and Governance to work with the GMCA Treasurer and other district Treasurers to finalise the detailed arrangements for the introduction and operation of the scheme;

·                Request a further report from the GMCA detailing how any additional revenues generated will support the promotion of Greater Manchester’s growth and reform strategies.

Officer contact: Andy Moran, Tel: 0161 474 4086, Andrew.moran@stockport.gov.uk

The Executive Councillor (Support & Governance) submitted a report (copies of which had been circulated) inviting the Executive to consider a proposal for the Council to enter the Greater Manchester and Cheshire East Business Rates Pool, a pilot scheme that would allow participating local authorities to retain within the pool the entirety of any growth in business rates revenue. Without the pooling arrangement any growth in revenue would be retained by the Treasury. The proposed pilot built on the existing pooling arrangements but it was intended that the additional income could be retained within the pool without impacting on the financial position of each local authority participating in the pool.

RESOLVED – That:-

·         the Business Rates retention scheme as set out in the report to the AGMA Executive and Greater Manchester Combined Authority of 27 March 2015 (attached at Appendix One of the report) be endorsed and agreed;

·         the Corporate Director for  Corporate and Support Services in consultation with the Executive Councillor (Support & Governance) be authorised to work with the GMCA Treasurer and other district Treasurers to finalise the detailed arrangements for the introduction and operation of the scheme;

·         a further report be requested from the GMCA detailing how any additional revenues generated would support the promotion of Greater Manchester’s growth and reform strategies.

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

The Greater Manchester and Cheshire East Business Rates Pool has been invited to pilot a new scheme for the full retention of business rates growth commencing 1 April 2015.  This builds on the existing pooling arrangements and should enable additional income to be retained for the purposes of the pool without impacting on the financial position of each district participating in the pool.

The purpose of this report is to:

·         Remind Members of the existing district and GM pooling arrangements;

·         Provide an outline of the proposed ‘full retention of growth’ scheme;

·         Make recommendations with regard to the new scheme’s endorsement and continued development.

The Executive at its meeting on 16 June will be  recommended to:

·         Endorse and agree the Business Rates retention scheme as set out in the report of 27 March 2015 to the AGMA Executive and Greater Manchester Combined Authority (attached at Appendix One);

·         Delegate authority to the Corporate Director, Corporate and Support Services in consultation with the Executive Councillor, Corporate, Customer and Community Services to work with the GMCA Treasurer and other district Treasurers to finalise the detailed arrangements for the introduction and operation of the scheme;

·         Request a further report from the GMCA detailing how any additional revenues generated will support the promotion of Greater Manchester’s growth and reform strategies

The Scrutiny Committee is invited to comment on the recommendations to the Executive.

Officer contact Andy Moran on Tel: 0161 474 4086 or by email on andrew.moran@stockport.gov.uk

A representative of the Corporate Director for Corporate and Support Services submitted a report (copies of which had been circulated) in connection with the Greater Manchester and Cheshire East Business Rates Pool having been invited to pilot a new scheme for the full retention of business rates growth commencing on 1 April 2015. This built on existing pooling arrangements and should enable additional income to be retained for the purposes of the pool without impacting on the financial position of each district participating in the pool. The proposed scheme enabled 100% of business rates growth to be retained within the Greater Manchester and Cheshire East Business Rates pool and complemented the goal of achieving fiscal devolution for Greater Manchester.

The new scheme would work alongside the existing district and pooling arrangements. The scheme was designed to capture all business rates growth across the city region without any additional downside risks that would be associated with reduced business rates income. Growth would be measured against an agreed baseline based on district NNDR1 returns which had been submitted to the Department for Communities and Local Government in January 2015.

The Executive Councillor (Support and Governance) (Councillor Iain Roberts) attended the meeting to respond to Members’ questions.

The following comments were made/issues raised:-

·         The effect of the inclusion of Cheshire East Council within the pool on the risk involved in the pool was discussed.

·         Whether responsibility for the scheme lay with the Greater Manchester Combined Authority or the Association of Greater Manchester Authorities.

·         The current pooling arrangements were for a twelve months’ term and there would be the opportunity to revisit the pooling arrangements at the time of the next local government finance settlement.

RESOLVED – That the report be noted.