Issue - meetings

Purpose of Report

To provide the Shared Revenues and Benefits Joint Committee with an update on current issues within non-domestic rates, related to City of Lincoln Council, North Kesteven District Council and West Lindsey District Council.

Decision

That the content of the report be noted.

Alternative Options Considered and Rejected

None.

Reason for Decision

The report focused on the changes announced as a result of Covid-19 and the support provided to businesses in the form of relief, – as grants were not directly paid by the Revenues and Benefits Shared Service, these were not covered in this report. The report also focused on the financial impact of recent appeals and reductions to rateable values.

Focus for both Government and billing authorities since the last meeting of Joint Committee had been a continuing response to Covid-19 measures announced since 11 March 2020.

The following updates were noted:

Expanded Retail Discount

The Expanded Retail Discount (ERD), first announced in response to the Covid19 pandemic and its impact on specific business sectors, was set to continue for a fourth year in 2023/24. The level of relief available under the discount had varied over the four years under a number of other parameters.

For 2023/24 the Chancellor set out:

•       An increase in retail, hospitality and leisure relief from 50% to 75% up to £110,000 per business

•       A freezing of the multipliers for a further year at 49.9p (small business multiplier) and 51.2p (standard multiplier)

•       Historically at the beginning of every new Rating List there had been a transitional scheme which phased in a large increase in liability for the Non Domestic Rates and this was offset by phasing in large decreases in liability. However, the transitional scheme for 2023, phased in large increases but there was no phasing of decreases and those customers would feel the benefit of any reduction in their rateable value immediately.

•       The Supporting Small Business Relief scheme would cap increases at £600 a year for any business losing eligibility for some or all Small Business Rate Relief or Rural Rate Relief at the 2023 revaluation.

•       The scope of the discount for 2023/24 would return to pre-Covid-19 eligibility retail properties. Hospitality and leisure properties would continue to remain in scope, and the Rateable Value continued to be uncapped.

Properties that would benefit from the relief would be occupied hereditaments that were wholly or mainly being used:

a)    as shops, restaurants, cafes, drinking establishments, cinemas and live music venues;

b)    for assembly and leisure; or

c)    as hotels, guest & boarding premises and self-catering accommodation.

Government would continue to reimburse LA’s that used their discretionary relief powers under Section 47 of the Local Government Finance Act 1988 (amended).

In terms of Expanded Retail Discount (ERD), the table at paragraph 4.5 of the officer’s report reflected the significant discounts awarded in the last three years along with an estimate on the award to be granted in 2023/24. The table also set out the level of discount applied, ranging from  ...  view the full minutes text for item 19

Purpose of Report

To provide the Shared Revenues and Benefits Joint Committee with an update on current issues within non-domestic rates, related to City of Lincoln Council, North Kesteven District Council and West Lindsey District Council.

Decision

That the content of the report be noted.

Alternative Options Considered and Rejected

None.

Reason for Decision

The report focused on the changes announced as a result of Covid-19 and the support provided to businesses in the form of relief, – as grants were not directly paid by the Revenues and Benefits Shared Service, these were not covered in this report. The report also focused on the financial impact of recent appeals and reductions to rateable values.

Focus for both Government and billing authorities since the last meeting of Joint Committee had been a continuing response to Covid-19 measures announced since 11 March 2020.

The following updates were noted:

Expanded Retail Discount

At the budget on 27 October 2021 the Chancellor of the Exchequer announced a Government package of business rate measures to support businesses in England.

For 2022/23 the Chancellor set out:

• A new relief for eligible retail, hospitality and leisure properties with 50% relief on rates bills up to £110,000 per business

• A freezing of the multipliers at 49.9p (small business multiplier) and 51.2p (standard multiplier)

• The Transitional Relief and Supporting Small Business Schemes would be extended into 2022-23 as a discretionary scheme

• The scope of the discount for 2022/23 would return to pre-Covid-19 eligibility retail properties. Hospitality and leisure properties would continue to remain in scope, and the Rateable Value continued to be uncapped.

Eligibility criteria was set out by the Department for Levelling Up, Housing and Communities (DLUHC), issued to local authorities on 20 December 2021 as detailed at paragraphs 4.2-4.4 of the officer’s report.

Government would reimburse LA’s that used their discretionary relief powers under Section 47 of the Local Government Finance Act 1988 (amended).

In terms of Expanded Retail Discount (ERD), the table at paragraph 4.6 of the officer’s report reflected the significant reduction in the amounts awarded during 2022/23 compared to 2021/22 and 2020/21 (2020/21-100%, 2021/22-100% (April, May & June), then 66%, and 2022/23-50%.at the end of Quarter 2

Discount for Businesses Affected by Covid-19

On 25 March 2021, the Government announced funding of £1.5 billion for businesses affected by Covid-19. The detail of the scheme was announced on 15 December 2021 with funding amounts allocated for each authority of £2,711,060 for City of Lincoln Council, £1,719,343 for North Kesteven District Council and £1,408,044 for West Lindsey District Council

Brief guidance from the Government stated that Local Authorities would be responsible for designing the discretionary relief schemes that were to operate in their areas as detailed at paragraph 5.3 of the officer’s report. 

Following discussions, guidelines for Lincoln, North Kesteven and West Lindsey, Covid Additional Relied Fund (CARF) schemes were agreed.

Round 1 application closed on 31 March 2022 and with those accounts that met the criteria of losses of 30% or more had been awarded 100%  ...  view the full minutes text for item 12