Issue - meetings

Consideration was given to a report on Government proposals for the local retention of Business Rates growth from April 2013 and the options for “pooling” business rates with other Authorities which would reduce the impact of volatility in rating income and generate growth through collaboration. It was anticipated that groups based around the Local Enterprise Partnerships (LEPs) could reinforce the LEP wide economic strategy. It was possible however to remain independent of a pool.

Members were reminded that Bromsgrove had previously expressed an interest in pooling with the Greater Birmingham and Solihull LEP and the Worcestershire LEP as at the time expressions of interest had been required, a financial appraisal with comparison of the two LEPs had not been available.

It was reported that the timetable for decision on pooling arrangements had now been amended by Government and a decision was required by 10th September 2012. Information on the potential benefits and risks of participating in each LEP pool was considered by Cabinet.

Members felt that participation in the Greater Birmingham and Solihull LEP offered a greater benefit to the Authority in terms of potential growth and economic development. It was recognised that the details of the impact of pooling arrangements would be dependent upon the terms of the Local Government Finance Settlement, which would not be available until December 2012 or January 2013.

Following detailed discussion it was

RECOMMENDED:

(a)       that the Council participate in the Greater Birmingham and Solihull LEP pool;

(b)       that it be noted that the detailed impact of the pooling arrangements will be dependent on the Local Government Finance Settlement for Bromsgrove which will not be available until December 2012 or January 2013 and that until this information is received a final decision will not be made; and

(c)        that recognising the situation outlined in (b) above, officers be tasked to work through the detailed financial impact of the pooling arrangements in the context of the financial settlement when received, and that in the light of this, the final decision in relation to the pooling arrangements be delegated to the Chief Executive and the Section 151 Officer, in consultation with the Group Leaders.