Issue - meetings

Purpose of Report

To inform the Executive of the estimated balance for the Business Rates element of the Collection Fund and the surplus or deficit to be declared for 2022/23.

Decision

(1)          That the action of the Chief Finance Officer in declaring a business rates deficit of £2,908,114 for 2022/23 be confirmed, subject to the confirmation of the business rates base by 31 January 2023, with any amendments to the declared deficit being notified to the relevant preceptors and being included in the Final Medium Term Financial Strategy 2023-28, to be presented to the Executive 20 February 2023.

(2)          That the spreading adjustment of a £1,202,848 deficit to be distributed in 2023/24 be noted.

Alternative Options Considered and Rejected

None. The Council was required by law to estimate whether there would be a surplus or deficit on its business rates collection prior to setting its budget for the following year.

Reasons for the Decision

The Council would declare a surplus on the Business Rates Collection Fund of £2,908,114 for 2022/23 subject to the confirmation of the Business Rates base by 31^st January 2023, of which its share was £1,163,246.

Whilst this was a significant surplus, £1,637,799 (£655,120 City Council share) of the surplus was offset by Government grants provided to compensate local authorities in respect of the business rate reliefs awarded to business in 2022/23. The remaining balance of £1,207,315 surplus, of which the Council’s share was £508,126, had arisen due to the final year end position on the 2021/22 Collection Fund, which was more positive than previously estimated.

In addition, as part of a spreading adjustment in respect of 2020/21 deficits, a deficit of £1,202,848, with the City Council’s share being £481,139, would be distributed in 2023/24.