Agenda item

A report of the Strategic Director of Corporate Services to consider the Council’s participation in a pilot scheme in which a substantial element of government funding would be received by retaining 75% of business rates collected (to follow).

Key Decision

Considered a report of the Strategic Director of Corporate Services to consider the Council’s participation in a pilot scheme in which a substantial element of government funding would be received by retaining 75% of business rates collected (item 11 on the agenda filed with these minutes).

Councillor Capleton, Chair of the Overview Scrutiny Group, presented a report detailing the Group’s pre-decision scrutiny of the matter and recommendation (copy filed with these minutes).

The Strategic Director of Corporate Services assisted with consideration of the report.  He explained that the shape of the bid would differ from that detailed in the report and that an amended recommendation 1 would be proposed to the Cabinet to reflect that.  

RESOLVED

1.      that the Council’s application to participate in a pilot scheme as part of a Leicestershire-wide proposal allowing 75% Business Rate Retention in 2019/20 in accordance with the principles set out below be approved:

•        All business rates collected would flow into the Leicestershire pool;

•        Participating local authorities would be required to forego certain grants (as set out in Part B of the report of the Strategic Director of Corporate Services);

•        Each local authority would be initially funded to a level equivalent to the retained business rates and grants receivable had they not been participants in the scheme including any grants foregone;

•        Funding for the Local Enterprise Partnership that would have been generated through the pre-existing business rate pool arrangements will be maintained;

•        Any surplus generated over and above these initial ‘calls’ would be allocated in accordance with an agreed protocol which will be collectively agreed by the Leaders of Leicestershire District Councils;

•        Should retained business rates not cover funding requirements then losses would be shared amongst participants in accordance with an agreed formula akin to that applied in respect of the existing business rate pool;

2.      that delegated authority be given to the Strategic Director of Corporate Services, in conjunction with the Cabinet Lead Member for Finance and Property Services and the Chief Executive, to agree on behalf of the Council and with other Leicester and Leicestershire local authorities, the detail contained within the Leicestershire-wide application to participate in a 75% business rate retention pilot scheme;

3.      that it be noted that, as the Chair of the Scrutiny Management Board agrees that this decision is both urgent and reasonable and delay caused by the Call-in process would not be in the interests of the Council or the public, the Call-in procedure is suspended in respect of this decision in accordance with Scrutiny Committee Procedure 11.9 of the Council’s Constitution;

4.      that the report of the Overview Scrutiny Group be noted.

Reasons

1.      To enable the Council to be part of a prospective wider Leicestershire pilot scheme with a view to increasing the funding available to the Council and across Leicestershire.

2.      To enable the Council to provide its assent to the Leicester and Leicestershire application submission on a timely basis.

3.      The Chair of the Scrutiny Management Board has agreed to the exemption from Call-in because the notice given of this opportunity and the timetable for applications is very tight, such that the effect of any call-in would be to prevent Charnwood participating in the scheme and, given that the application will be on a combined Leicestershire basis, could remove the opportunity for all Leicestershire Authorities to participate.

4.      To acknowledge the work undertaken by and the views of the Overview Scrutiny Group.