Issue - meetings

ORDERED that Executive:

1.    Approve the proposals as set out in the report approve the updated Discretionary Rates Relief policy.

2.    Approve that delegated authority to approve any future minor revisions/modifications required for clarification or legislative requirements to the policy be provided to the Director of Finance.

3.    That Executive note that the policy brings together three existing schemes, against which discretionary rate relief could be awarded, to be replaced by one policy which provided clarity and consistency for those organisations wishing to apply for the relevant relief.

4.    The proposed key changes to the policy included:

                      i.        Clearly defined criteria, decision making panel and e-form to improve the user experience of the application and governance process.

                    ii.        A cap of 50% for Hardship relief applications in year one, with an option for an enhanced rate of 100% relief in year one if applicants can evidence greater impact to the local economy, as outlined in the policy. In addition, an introduction of tapered reductions in consecutive hardship relief awards up to a maximum of three years subject to appropriate supporting evidence.

                   iii.        For organisations that were not registered as charities or Community Amateur Sports Clubs (CASC), a 20% discretionary relief award will be applied (subject to scheme eligibility). This is a reduction from the existing scheme where non-registered organisations have been eligible for up to 100%.

                   iv.        For Partly Occupied Hereditaments, applicants would need to demonstrate inward investment in order to qualify e.g., businesses relocating into Middlesbrough (as opposed to businesses relocating away from the town)

The Executive Member for Finance and Governance submitted a report for Executive consideration.

The Council’s current policy had been refreshed and now incorporated a number of

proposed amendments as outlined under the heading ‘proposed changes to the

current policy/scheme.’

The Local Government Finance Act 1988 provided the Council with mandatory and discretionary powers to award relief from liability for National Non-Domestic Rates (NNDR) against Non-Domestic Properties (Hereditaments).

Mandatory relief was awarded at 80% where the ratepayer in occupation was a charity or trustee for a charity or registered Community Amateur Sports Club.

Discretionary relief could be awarded to non-profit making bodies and organisations

whose main objectives were philanthropic, religious, concerned with education, social

welfare, science, literature, the fine arts, and to non-profit making clubs, societies or similar bodies that are used mainly for the purposes of recreation.

ORDERED that Executive:

1.    Approve the proposals as set out in the report approve the updated Discretionary Rates Relief policy.

2.    Approve that delegated authority to approve any future minor revisions/modifications required for clarification or legislative requirements to the policy be provided to the Director of Finance.

3.    That Executive note that the policy brings together three existing schemes, against which discretionary rate relief could be awarded, to be replaced by one policy which provided clarity and consistency for those organisations wishing to apply for the relevant relief.

4.    The proposed key changes to the policy included:

                      i.        Clearly defined criteria, decision making panel and e-form to improve the user experience of the application and governance process.

                    ii.        A cap of 50% for Hardship relief applications in year one, with an option for an enhanced rate of 100% relief in year one if applicants can evidence greater impact to the local economy, as outlined in the policy. In addition, an introduction of tapered reductions in consecutive hardship relief awards up to a maximum of three years subject to appropriate supporting evidence.

                   iii.        For organisations that were not registered as charities or Community Amateur Sports Clubs (CASC), a 20% discretionary relief award will be applied (subject to scheme eligibility). This is a reduction from the existing scheme where non-registered organisations have been eligible for up to 100%.

                   iv.        For Partly Occupied Hereditaments, applicants would need to demonstrate inward investment in order to qualify e.g., businesses relocating into Middlesbrough (as opposed to businesses relocating away from the town)

OPTIONS

Leaving the existing policies in place: although the current schemes did not provide

sufficient defined criteria, lack any focus for awarding discretionary relief and presented the possibility of a significant increase in applications once Government funding for other reliefs end and as such was not financially viable, hence not recommended.

Recent applications had been evaluated against the proposed recommendations. The findings of which would indicate an appropriate level of support, whilst also limiting the financial impact to the Council.

REASONS

The Policy was a key decision that impacted on two or more wards and as such required Executive approval.

Delegated authority to the Director of Finance  ...  view the full minutes text for item 86