Agenda item - Revaluation Discretionary Rate Relief for Business Rate Payers

Report of the Executive Director for Finance & Resources (copy attached).

1)           That Policy, Resource & Growth Committee approves the proposed 2017/18 Discretionary Rate Relief Scheme.

44.1      The Committee considered a report of the Executive Director, Finance & Resources that set out the proposed Discretionary Rate Relief scheme.

44.2      Councillor Sykes stated that the council needed to make the best use of the funding available but there was no breakdown detailed in the report of the calculation made to maximise use of the funding without overspending. Councillor Sykes stated that he welcomed the results of the consultation that had materially changed the criteria that provided greater capacity to support local businesses.

44.3      The Revenues & Benefits Manager clarified that the bulk of applications would be completed by December that would allow time to be spent on the more complex cases. The Revenues & Benefits Manager explained that the business rates caseload had been profiled with real cases to see how scheme would work in practice and officers were assured on maximising the funding available without risk of overspend.

44.4      Councillor Wealls asked how multi-national companies and national companies would be defined and asked for assurance that the definition wouldn’t be open to challenge.

44.5      The Revenues & Benefits Manager stated that there would be a case by case review against a multitude of factors. They would include the number of properties in the area, information on the business website and the status of the company.

44.6      Councillor Yates noted that the council could grant 100% discretionary relief for a property if it was occupied by an organisation that is not established or conducted for profit. Referring to The Bevy pub in Moulsecoomb, Councillor Yates stated that The Bevy had been refused discretionary relief as did not accord with a set of limited criteria even though it was a co-operative. Councillor Yates added that the criteria that judgement had been assessed upon had been agreed in 2011 and was now out of date. Councillor Yates asked for assurance that policy would be updated, particularly to include different types of businesses that operated for community and social benefit and not simply charities.

44.7      The Executive Director, Finance & Resources stated that whilst the council was currently adhering to its set criteria, the case of The Bevy provided opportunity to reassess that criteria, although it was essential to retain a consistent framework.

44.8      Councillor Janio enquired whether there would be a right of appeal if businesses were automatically enrolled for rate relief.

44.9      The Revenues & Benefits Manager stated that the determining system was very factual and evidence based and businesses would be matched against very detailed criteria. The Executive Director, Finance & Resources added that dialogue with the Revenue & Benefits team would be encouraged however; a long appeal process was not desirable as the rate relief assessment was very factually based.

44.10   Councillor Peltzer Dunn stated his concern that a number of local, county based businesses could be denied rate relief using the number of known properties outside of Brighton & Hove as a determining assessment. Referring to paragraph 3.18, Councillor Peltzer Dunn stated that “premises they occupy” should replace “ratepayers” as ratepayers did not have a rateable value.

44.11   The Revenues & Benefits Manager clarified that no one factor would be determinative to give discretion in cases such as the one raised by Councillor Peltzer Dunn.

44.12   Councillor Peltzer Dunn stated that in using a case by case judgement against set criteria, businesses would be unclear about why they had not been successful, particularly with no right of appeal.

44.13   The Executive Director, Finance & Resources stated that he believed that a categorisation be established once application began to be processed and he assured the committee that Members would be kept appraised of the schemes progress.

44.14   The Committee agreed to the proposal by Councillor Peltzer Dunn to correct the terminology in paragraph 3.18 of the report as set out in minute item 44.10.

44.15   RESOLVED- That Policy, Resource & Growth Committee approves the proposed 2017/18 Discretionary Rate Relief Scheme.