Agenda item

To provide the Joint Committee with an update on current issues with non-domestic rates.

Decision

That the report be noted.

None.

The following updates were noted:

Supporting Small Business Relief Scheme

This relief was made available to those ratepayers who faced a large increase as a result of the loss of small business or rural rate relief. The number of hereditaments that had been identified for 2018/19 and 2019/20 and had benefitted from the scheme as at 30 April 2019 for each of the three partner authorities was set out in the table at paragraph 4.1 of the report.

It was reported that although the number of businesses awarded relief had reduced, the total award had increased. This was due to the increase in rateable value for 2019/20 as a result of the annual uprating and reduction of transitional relief in-year.

Discretionary Relief Scheme

The tables at paragraph 4.2 of the report outlined the number of accounts identified and the total cost of relief for comparison purposes over the last three years for each of the partner authorities.

A review of the awards for 2019/20 had taken place for West Lindsey and additional awards had been made. For North Kesteven and the City of Lincoln these reviews had taken place throughout January 2020 with reliefs awarded onto accounts before new bills were issued for 2020/21.

Retail Discount – Autumn Budget 2018

Retail relief for 2019/20 had been awarded as reflected in the table at paragraph 4.3 of the report for each of the partner authorities.

Outstanding Court of Appeal Decisions – Automated Transaction Machines

This continued to have implications for local authorities but no new information had been made available since the previous meeting of the Joint Committee.

City of Lincoln Business Rates Growth Policy – Awards

Since the introduction of this Policy on 1 April 2019, four awards had been made to businesses at the value of £55,123.

North Kesteven Business Rates Growth Policy – Awards

Since the introduction of this Policy in 2016, six businesses had been awarded this relief totalling £411,230.

A Ministerial announcement had been made following the Queen’s Speech which advised local authorities to include the following provisions in accounts prior to billing:

·         an increase in the retail business rate discount from 33% to 50%, with this discount extending to cinemas and music venues;

·         the introduction of an additional £1,000 discount for pubs with a rateable value of less than £100,000;

·         the extension of the local newspaper discount with an additional £1,500.

Councillor Ray Cucksey queried why North Kesteven’s uptake of the Supporting Small Business Relief Scheme was so low and whether there was a specific reason for this. It was reported that businesses had simply not responded to positive and proactive approaches made by the team. The Head of Service agreed to look into this matter in further detail to establish whether there was a particular reason as to why business were not engaging.

Councillor David Suiter was keen for businesses to claim this entitlement and queried whether they understood that this was genuine as opposed to a scam. The Head of Service explained that a letter would initially be sent which may be followed up by a telephone call from the team. The team would not have the resources available to undertake physical visits to individual businesses, although officers through other routine duties could make businesses aware of the relief scheme as and when they came into contact with them.

It was noted that the relief in some cases reflected relatively low value claims, which may be another reason why some businesses chose not to engage. A suggestion was made that the scheme be highlighted through local business organisations such as the Chamber of Commerce and Business Improvement District Board, as well as highlighted through social media.