Issue - meetings

Purpose of Report

To seek approval of a City of Lincoln Business Rates Growth Policy, which aimed to provide a time limited rate relief discount to new and extended business premises within the city in the interest of building the Business Rates base, supporting economic growth and job creation.

Decision

That the Executive:

(1)       Supports the proposal for a different level of discount being available depending on whether or not a business is located, or is to be located, within a Strategic Employment Site as identified within the Central Lincolnshire Local Plan.

(2)       Delegates changes to scheme parameters to the Chief Finance Officer, providing these do not fundamentally alter the principles behind this policy and continue to link into aspirations relating to the Council’s Strategic Plan.

(3)       Approves the proposed Business Rates Growth Policy.

Alternative Options Considered

None.

Reason for Decision

Provisions under Section 69 of the Localism Act 2011 allowed all authorities to grant discretionary relief in any circumstances where the Council felt fit having regard to the effect on the Council Tax payers of its area. It was proposed that, in line with the Act, the Council adopted a policy for the discounting of Business Rates where economic benefit to the city could be evidenced.

A draft Business Rates Growth Policy, outlining further details of the proposed relief, including eligibility criteria, was included in the appendices to the report. The draft policy aimed to provide a time-limited rate relief discount to new and extended business premises within the city, in the interest of building the business rate base, supporting economic growth and job creation. Eligibility and aspects of the scheme were noted as follows:

·         the ratepayer must be able to evidence that new employment floor space would be provided, and by association additional rateable value, either through new development or extension by the end of the discounted period;

·         the ratepayer must be able to demonstrate that their business was of value to the city with reference to employment, economy and/or growth sector as set out in local evidence as outlined in Appendix B;

·         the ratepayer must not be entitled to mandatory rate relief or relief as a non-profit making organisation or as a sports club or similar;

·         discretionary rate relief would not ordinarily be granted on unoccupied premises. Consideration for this relief may, however, be given for businesses within identified priority employment areas;

·         the ratepayer must demonstrate that assistance would only be required for a maximum period of three years and that their business/operation was financially viable in the medium and long term.

In order for a growth business to qualify for a discount they must apply to the Council’s Major Developments Directorate. Applications would be scored by an Officer Board which would aim to meet at least quarterly, with applications judged on their merits on a case-by-case basis. Details relating to the scoring criteria were set out in paragraph 4.6 of the report.

Any award made as a local growth discount would fall as a loss on  ...  view the full minutes text for item 28