Agenda item
Business Rates Pool Pilot 2019/20 Report
Minutes:
The recommendations in respect of the Business Rates Pool Pilot 2019/20 were proposed by Councillor G. Denaro and seconded by Councillor K. J. May.
Councillor Denaro reminded Members that in 2017 bids were opened up by Central Government for a 100% pilot and that Worcestershire had put forward a bid. Unfortunately on that occasion Worcestershire was unsuccessful. However, Central Government have opened up a second round of pilots for 75% retention and Worcestershire Leaders would like to put forward a bid. There was a deadline of 28th September hence the inclusion of the delegation to the Executive Director, Finance and Corporate Resources in consultation with the Portfolio Holder and Group Leaders, which was along the lines of the agreement previously discussed.
It was acknowledged that this deadline did not give a lot of time and Councillor Denaro confirmed that the Leaders of all seven councils had recently met and agreed in principle to proceed with a bid for a pilot in 2019/20. It had also been agreed that no authority would gain from being in a pilot unless all authorities were at least in the position they would have enjoyed with the 50% retention arrangements, which was the current position for Bromsgrove. It was further agreed in principle that the collective gain from being in a pilot would be invested in district and county services that prevented or reduced the cost of social care. It was important that all seven councils were committed to the pilot application, as it was likely that if one did not want to proceed then the chances of success would be diminished to the point that an application would not be worthwhile. The Treasurers were currently working on how best the pilot could be executed and a number of areas were highlighted which would enable the County Council to work with the districts to support those residents most in need of support.
It had been estimated that the additional business rates retained locally in 2019/20, if the Council was in the pilot compared to current arrangements, would be in the region of £4.5m.
Following presentation of the report, Members discussed a number of areas in more detail, including:
· Members welcomed the proposed investment in adult social care.
· Reference was made to a meeting which some Members understood had taken place and which had involved the Leaders of the non-constituent members of the West Midlands Combined Authority (WMCA) and the elected Mayor of that authority. It was understood that this Council had not been represented at that meeting but that its future role had been discussed. This was a cause for concern for a number of Members.
· The Leader assured Members that he was not aware of this meeting and would make further enquiries. He also confirmed that it was not possible for changes to the membership of WMCA to be made for a further 18-24 months. Councillor May confirmed that Redditch Borough Council was a non-constituent member.
· Concerns that the previous pilot scheme had seen Worcestershire County Council try to put forward an alternative agreement at the eleventh hour, which had been to the detriment of the other councils. The Leader did not expect there to be any changes to the agreement that was currently being discussed.
· Further concerns were raised around what was going on “behind the scenes”, and the importance of the Council being able to take a stance and be part of the next pilot.
· Presentations which Members had received previously in respect of WMCA and WCC when the decision had been made not to move forward with membership of WMCA.
RESOLVED:
a) that Bromsgrove District Council be included in a joint Worcestershire application to be a 75% business rates retention pilot in 2019/20; and
b) that authority be delegated to the Executive Director, Finance and Corporate Resources in consultation with the Portfolio Holder for Finance and enabling Services and the Group Leaders to make necessary decisions on the Council’s behalf.
Supporting documents:
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