Issue - meetings

To receive and consider report 138/07 of the Strategic Director and Chief Finance Officer. 

Introduction and Report Summary

The purpose of this report is to agree a new simplified process for awarding National Non-Domestic Rate discretionary relief (business rates relief) that supports delivery of the Council’s Corporate Plan and Community Strategy.  The report will aim to establish a clear, transparent policy with an unambiguous link to the aims, objectives and priorities of the Council.

This report is a review of the criteria for granting discretionary rate relief from rates on any non-domestic property only and makes no proposals in relation to mandatory rate relief as the Council has no discretion in such matters; where it acts as the agent of central government.

The contact officer for this report is Paul Howden, Revenues & Benefits Client Manager (Tel: 01235 540385; email paul.howden@southoxon.gov.uk).

Recommendations

Members are requested to approve:

2.1       The categories of organisation eligible for National Non-Domestic Rates discretionary rate relief from 1 April 2008 as set out in Appendix A of the report.

2.2       The level of award to different types of organisation from 1 April 2008 as set out in Appendix B of the this report, subject to any over-riding considerations that mitigate against making an award to a particular organisation.

2.3       A cap of £8,000 on the amount of discretionary rate relief and £4,000 on the amount of discretionary top-up rate relief that any organisation can receive in respect of a particular premises in any one financial year, unless it is in the financial interests of the Council to facilitate a larger amount being awarded. The cap limits are to be reviewed each financial year and will rise in line with inflation and the non-domestic rates multiplier.

2.4       The decision to award discretionary relief to be delegated to the Chief Finance Officer based on the categories agreed by the Executive. 

2.5       A review of the eligibility of the organisations that are currently being granted rate relief. 

2.6       The criteria for discretionary relief will to be reviewed at least every three years in line with the changing priorities of the Council commencing from year 2010 – 2011. 

(Time: 3.20pm to 3.28pm)

The Executive received and considered report 138/07 of the Strategic Director and Chief Finance Officer, which reviewed the criteria for granting discretionary rate relief on any non-domestic property.  The report sought agreement to a new simplified process for awarding National Non-Domestic Rate discretionary relief (business rates relief) that supported delivery of the Council’s Corporate Plan and Community Strategy. 

The Local Government Finance Act 1988, as amended, set out the general categories of organisations and properties eligible for relief.  Certain types of organisations such as charities, some sports clubs and certain rural businesses, were entitled to mandatory relief from rates on any non-domestic property providing certain criteria were met.  Local councils had discretion to grant further top-up relief on the remaining bill.  Councils also had discretion to grant relief on all or part of any rate bill for property that was occupied by certain non-profit making bodies and business in rural areas.  The report set out the existing criteria and suggested changes to the scheme. 

The suggested changes were:

·        there would no longer be a differentiation between sports clubs with or without licensed bars.  Instead, clubs would be encouraged to register with HM Revenue and Customs as Community Amateur Sports Clubs

·        sports clubs that registered would be entitled to 80% mandatory rate relief and this could be topped-up at the Council's discretion, effectively granting the same rights to rate relief as registered charities

·        the criteria for discretionary rate relief should be changed to make it clear that any sports club that had not applied for registration would normally have its discretionary rate relief reduced, initially receiving 50% discretionary relief which would then be reduced to 30% over a three year period.  However, if a sports club proved it was not eligible to register, it would continue to receive 50% discretionary relief

·        a further incentive to encourage registration would be the offer of 5% discretionary top-up rate relief in addition to the 80% mandatory relief

·        businesses that occupied premises with a rateable value of less than £15,000 were entitled to Small Business Rate Relief, subject to conditions, which was awarded at no cost to the Council.  Potentially eligible clubs should be encouraged to apply for relief.  Failure to apply would result in any award of discretionary rate relief being based on what their rate liability would be if Small Business Rate Relief had been applied.  Officers would encourage these organisations to appeal, as any reduction in the rate liability would also reduce the Council’s rate relief burden

·        the non-domestic rating legislation made provision for 50% mandatory rural rate relief for certain general stores, post offices, general food stores, petrol filling stations and public houses.  Councils could also top-up the relief to 100%.  Councils could also award discretionary rural rate relief for rural premises used for local community benefit.  It was proposed that discretionary rural rate relief was awarded to all eligible rural post offices and general stores at 50% across the District

·        with regard to village halls  ...  view the full minutes text for item 124