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 2023/24.

Decision

That the action of the Chief Finance Officer in declaring a business rates surplus of £1,169,795 for 2023/24 be confirmed, subject to the confirmation of the business rates base by 31 January 2024, with any amendments to the declared deficit to be notified to the relevant preceptors and be included in the Final Medium Term Financial Strategy 2024-29, to be presented to Executive 19 February 2024.

Alternative Options Considered and Rejected

None. The Council was required to declare any surplus or deficit during January of each financial year and once approved had an obligation to notify its major precepting authorities (for business rates these were Lincolnshire County Council and the Government) of their share of the estimated surplus or deficit.

Reasons for the Decision

The Council would declare a surplus on the Business Rates Collection Fund of £1,169,795 for 2023/24 subject to the confirmation of the Business Rates base by 31 January 2024, of which its share was £467,918.

This surplus had arisen primarily due to prudent estimates, in the Business Rates base for 2023/24, in relation to the level of mandatory empty property reliefs and the level of Check, Challenge and Appeals against the new 2023 Ratings List.

The calculation of business rates was based on an estimate of rates collected in year compared to the estimate made the previous year, taking into account any previously declared surplus or deficit, and a forecast for the remainder of the current year.

Based on the forecast position of the in-year Collection Fund as at 31 March 2024 and taking into account an adjustment for the difference between prior year estimates compared to the actual outturn it was estimated that there would be a surplus of £1,169,795 on the business rates element of the Collection Fund in 2023/24.