Agenda item

The Cabinet is required to consider on the grounds of special urgency the Council’s participation in the 2019/20 Business Rate Pilot for the Peterborough and Cambridgeshire area.

i.  To agree the Council’s participation in the 2019/20 Business Rate Pilot for the Peterborough and Cambridgeshire area on the proviso that the Cambridgeshire and Peterborough Combined Authority confirms that it will underwrite ‘no detriment’ for the Council: and that

ii.  Subject to other considerations or changes, that the Head of Resources be delegated authority to amend the District Council’s response as necessary, in consultation with the Executive Leader. 

Prior to consideration of the matter it was announced that in accordance with Section 100B (4)(b) of the Local Government Act 1972, the report was being considered as an urgent item of business, on the basis the Cabinet was required to take an urgent decision on the matter as all constituent authorities of the Cambridgeshire and Peterborough Combined Authority (CPCA) had been consulted on a proposed bid to the Government relating to a pilot scheme for the retention of Business Rates, which was to be considered by the CPCA on 26 September 2018. As a result the matter would not be subject to call-in.

Following which the Cabinet gave consideration to a report by the Head of Resources (a copy of which is appended in the Minute Book) which had been circulated separate to the agenda.

It was explained that the Council, together with the other constituent authorities of the CPCA were considering the submission of a joint bid to the Ministry of Housing, Communities and Local Government to participate in a one year business rates retention pilot for 2019/20. The bid had to be submitted on the 25 September 2018. The lead authority would be Cambridgeshire County Council who would also be responsible for administering the scheme.

In response to questions it was explained that:

·  the CPCA proposed to underwrite the bid and that any Council who participated in the pilot would not suffer detriment as a result of participating.

·  the Council would receive a per capita share of any Non Domestic Rate (NDR) growth, the current modelling indicated this would be in the region of £1.6m.

·  Pilot Councils would not receive Revenue Support Grant (RSG). The current estimate for RSG in 2019/20 for the Council was nil.  However, the Council had not budgeted for any RSG.  After adjustments to NDR tariffs and top-ups as a consequence of the pilot the £1.6m would reduce.  The amount of reduction was not known but it was expected that any reduction would not be significant enough to not support the bid.

·  Any additional funds would be apportioned as follows: 80% split between the constituent authorities based on population; 10% to Cambridgeshire County Council; and 10% to the CPCA to create a Business Growth Fund.

·  There was no stipulation of how the Council had to use these funds.

One of the conditions when submitting the bid was that all authorities had to agree to the Pilot.  However, there was no guarantee that the bid would be successful.

As other authorities were also in the process of considering whether to participate in the Pilot, the Leader proposed the following additional recommendation, which was agreed, to allow the Council to react if necessary:

‘Subject to other considerations or changes, that the Head of Resources be delegated authority to amend the District Council’s response as necessary, in consultation with the Executive Leader’.

Whereupon the Cabinet,

RESOLVED

i.  To agree the Council’s participation in the 2019/20 Business Rate Pilot for the Peterborough and Cambridgeshire area on the proviso that the Cambridgeshire and Peterborough Combined Authority confirms that it will underwrite ‘no detriment’ for the Council: and that

ii.  Subject to other considerations or changes, that the Head of Resources be delegated authority to amend the District Council’s response as necessary, in consultation with the Executive Leader.