Agenda item

Purpose of Report

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

Decision

That the content of the report be noted.

Alternative Options Considered and Rejected

None.

Reason for Decision

The following updates were noted:

Expanded Retail Discount

In the budget on 29 October 2018, Government announced that it would provide Business Rates Retail Discount to apply in the years 2019/20 (33% discount) and 2020/21 (50%) discount.) This would be for businesses with a rateable value up to (but not including) 51,000. 

In response to Covid-19, in the Budget on 11 March 2020, Government announced that it would increase the discount for 2020/21 to 100% and extend it to include the leisure and hospitality sectors On 23 March 2020, further measures were announced which resulted in the relief being applied to occupied retail, leisure and hospitality properties in the year 2020/21, as well as removing the rateable value limit.

At the time of writing this report (28 January 2021), the relief for 2021/22 had not yet been announced. Officers expected this announcement as part of the budget on 3 March 2021.

Nursery Discount

In response to Covid-19, Government announced a business rates Nursery Discount on 18 March 2020. The relief would be applied to hereditaments occupied by providers on Ofsted’s Early Years Register and wholly or mainly used for the provision of the Early Years Foundation Stage and were subject to businesses rates in the year 2020/21. There was no indication at the current time whether the relief would be continued in 2021/22.

Support for Businesses – Lockdown Grants

On 4 January 2021, the Prime Minister announced that from 5 January 2021 there would be a period of new national restrictions which required certain businesses and venues to close - or restrict how they provided goods and services. In addition to the grants previously provided, the Government announced the following would also be available from 5 January 2021 as follows:

• Local Restrictions Support Grant (LRSG) (Closed) Addendum; and
• Closed Businesses Lockdown Payment

Local Authorities (LA’s) were responsible for delivering the funding to eligible businesses with Government reimbursing the payments made by LA’s, in line with set criteria. The support would continue until 31 March 2021.

Local Restrictions Support Grant-Closed Addendum Payment

This scheme was an extension of the LRSG (Closed) scheme but had been adapted for the period of the national restrictions. The principal feature was that the payment period was initially extended to 42 days from 5 January 2021 rather than the 14-day payment cycle for tier lockdown.

The level of funding for this grant was as follows:

·         City of Lincoln - £3,272,346

·         North Kesteven - £1,967,193

Closed Businesses Lockdown Payment (CBLP)

This payment would be in addition to LRSG (Closed) Addendum. Local Authorities would receive a one-off lump sum payment to deliver a one-off payment for businesses that had been required to close from 5 January 2021 due to the introduction of national restrictions. The funding was not retrospective.

The level of funding was as follows:

·         City of Lincoln - £6,543,000

·         North Kesteven - £3,933,000

Fire Stations and Hospitals-Potential Reductions in Rateable Value

On 4 December 2020, the Valuation Office Agency (VOA) contacted all Local Authorities to advise they may start to see changes in the rateable values of hospitals and fire stations. These categories had been discussed under the VOA’s Group Pre-Challenge Review (GPCR) procedure.

On average reductions would be around 10% on NHS and private hospitals, and 9% on fire stations however this would be subject to wide variation dependant on the age of the properties.

The impact of the changes was currently being reviewed and would be included in the budget process as part of the completion of the NDR1 budget return.