Decision details

DCLG have published a paper on 1st September 2017 inviting local authorities to submit pilot bids for one year (2018/19) for 100% localisation of business rates. Bids must be submitted by 27th October 2017, with the outcome being advised by DCLG in December 2017.

100% pilots will retain all locally-collected business rates and will receive additional responsibilities in return. Any difference between the increase in business rate retention and new responsibilities will be offset by an adjustment to top-ups or tariffs. The creation of the pilots will therefore be “fiscally neutral” at baseline. However authorities will gain from retaining 100% of any above-baseline growth.

The Chief Executive has agreed that this will be treated as an urgent item due to work not concluding with all potential West Sussex pooling local authorities until mid-October and will be protected from Call-in.

The Leader of the Council presented report FIN/425 of the Head of Finance, Revenues and Benefits. The report sought to determine whether to submit a bid to the Department of Communities and Local Government (DCLG) for Crawley Borough Council to take part in the West Sussex wide 2018-2019 pilot for 100% business rate retention.

The Chief Executive had agreed that this item would be treated as an urgent item under Cabinet Procedure Rule 1.5, due to work not being concluded with all potential West Sussex pooling local authorities until mid-October 2017.  In view of the need for the matter to have been dealt with as a matter of urgency, this item had been protected from the call in procedure.

RESOLVED

That Cabinet:

1)         Approve the submission of a bid to the Department of Communities and Local Government for Crawley Borough Council to take part in the West Sussex wide 2018-2019 pilot for 100% business rate retention.

2)         Delegate to the Head of Finance, Revenues and Benefits, in consultation with the Leader, the authority to accept the Pilot if the Council is successful.

Reasons for Decision

a)         To enable a bid to be prepared in line with the timescales set out by DCLG which required delegated authority to be granted. The deadline for submission is 27 October 2017.

b)         If taxation receipts grow faster than spending on additional responsibilities, a successful bid should result in a greater share of local taxation being retained in the area, for the benefit of residents and service users.