Agenda item

To consider a report of the Cabinet Member for Finance & Resources.

The Council is required to annually agree the scheme of local discounts and exemptions which are available against liability for Business Rates and Council Tax. This includes the localised Council Tax Support Scheme.

This report outlines the current arrangements, and proposed changes.

It is recommended that the Cabinet agrees:-

(1) That the CASC top-up scheme be continued for the financial year 2024-25, enabling CASCs to achieve 100% relief from non-domestic rates, provided they meet the qualifying criteria at Appendix 2.

(2) That charity relief remains limited to the 80% mandatory relief for the financial year 2024-25.

(3) That rural rate relief continues to be limited to 50% mandatory relief for the financial year 2024-25 and should any village shops be established in the future then additional discretionary relief should be awarded up to 100%.

(4) That the 50% discount and qualifying criteria for not-for-profit organisations be maintained for the financial year 2024-25.

(5) That the local scheme for large businesses which are new to the Borough or those undergoing significant expansion in the Borough be continued for 2024-25.

(6) That the continuation of a case-by-case approach for business rates discounts where exceptional circumstances exist be continued for 2024-25. It is unlikely that exceptional circumstances relief would be awarded to an organisation which was in receipt of support from the council, either grant funded or commissioned.

(7) That the current rules for backdating or making a variation to discretionary rate relief awards as described at paras 3.10.4 and 3.10.5 will continue for 2024-25.

(8) That the council continues to no longer offer a Council Tax discount in respect of unoccupied properties for 2024-25, except for class E & F dwellings where 100% relief is awarded.

(9) That the maximum Council Tax premium charges continue to be applied in respect of class A, C & D dwellings (empty and unfurnished properties) at the rates shown at para 4.1.8 for 2024-25.

(10) That the timeframe for which a premium should be charged on long-term empty properties, is reduced from two years to one year, from 1 April 2024.

(11) That a premium charge of 100% is applied on class B dwellings (empty and furnished properties, which include second homes) from 1 April 2025.

(12) That any Council Tax liability for care leavers up to the age of 25 be reduced to zero for 2024-25.

(13) That Stockport’s Council Tax Support scheme is maintained for the financial year 2024-25 as detailed at Appendix 5.

(14) That the Council Tax discretionary fund is set at £0.385m for 2024-25, supporting customers facing financial difficulty, with no alternative means.  

(15) That delegation is given to the Deputy Chief Executive in consultation with the Cabinet Member for Finance and Resources to review and adjust the Council Tax discretionary fund during 2024-25 capped at a total fund of £0.500m if required, to support the council’s cost-of-living response. 

(16) That the council’s discretionary support policy for help with rent and Council Tax costs at Appendix 6 is endorsed for 2024-25.

(17) That delegation is given to the Deputy Chief Executive in consultation with the Cabinet Member for Finance and Resources to consider any subsequent government announcements that impact on Business Rates and Council Tax reductions for 2024-25, and to decide what changes should be made aligned to legislation.

Officer contact: Jonathan Davies on 0161 218 1025 or by email at jonathan.davies@stockport.gov.uk

The Cabinet Member for Finance & Resources (Councillor Jilly Julian) submitted a report (copies of which had been circulated) detailing the annual review the local scheme of discounts and exemptions which are available in respect of Business Rates and Council Tax.

The following comments were made/ issues raised:-

·         The approach to applying premium charges for those properties that had been empty for over two years was welcomed as a means of bringing dwellings back into use.

·         The proposed reduction in Council Tax liability for care leavers up to the age of 25 was highlighted as part of the wider package of measures to support Stockport’s care leavers.

RESOLVED - (1) That the CASC top-up scheme be continued for the financial year 2024-25, enabling CASCs to achieve 100% relief from non-domestic rates, provided they meet the qualifying criteria at Appendix 2.

(2) That charity relief remains limited to the 80% mandatory relief for the financial year 2024-25.

(3) That rural rate relief continues to be limited to 50% mandatory relief for the financial year 2024-25 and should any village shops be established in the future then additional discretionary relief should be awarded up to 100%.

(4) That the 50% discount and qualifying criteria for not-for-profit organisations be maintained for the financial year 2024-25.

(5) That the local scheme for large businesses which are new to the Borough or those undergoing significant expansion in the Borough be continued for 2024-25.

(6) That the continuation of a case-by-case approach for business rates discounts where exceptional circumstances exist be continued for 2024-25. It is unlikely that exceptional circumstances relief would be awarded to an organisation which was in receipt of support from the council, either grant funded or commissioned.

(7) That the current rules for backdating or making a variation to discretionary rate relief awards as described at paras 3.10.4 and 3.10.5 will continue for 2024-25.

(8) That the council continues to no longer offer a Council Tax discount in respect of unoccupied properties for 2024-25, except for class E & F dwellings where 100% relief is awarded.

(9) That the maximum Council Tax premium charges continue to be applied in respect of class A, C & D dwellings (empty and unfurnished properties) at the rates shown at para 4.1.8 for 2024-25.

(10) That the timeframe for which a premium should be charged on long-term empty properties, is reduced from two years to one year, from 1 April 2024.

(11) That a premium charge of 100% is applied on class B dwellings (empty and furnished properties, which include second homes) from 1 April 2025.

(12) That any Council Tax liability for care leavers up to the age of 25 be reduced to zero for 2024-25.

(13) That Stockport’s Council Tax Support scheme is maintained for the financial year 2024-25 as detailed at Appendix 5.

(14) That the Council Tax discretionary fund is set at £0.385m for 2024-25, supporting customers facing financial difficulty, with no alternative means. 

(15) That delegation is given to the Deputy Chief Executive in consultation with the Cabinet Member for Finance and Resources to review and adjust the Council Tax discretionary fund during 2024-25 capped at a total fund of £0.500m if required, to support the council’s cost-of-living response.

(16) That the council’s discretionary support policy for help with rent and Council Tax costs at Appendix 6 is endorsed for 2024-25.

(17) That delegation is given to the Deputy Chief Executive in consultation with the Cabinet Member for Finance and Resources to consider any subsequent government announcements that impact on Business Rates and Council Tax reductions for 2024-25, and to decide what changes should be made aligned to legislation.