Agenda item

Executive Summary

The Non-Domestic (Business) Rates Policy 2024-25 has been revised to reflect the new and extended schemes announced by government and includes guidelines as to how the schemes are to be implemented and the financial implications on the authority.

Options considered.

The policy is discretionary, so members can decide not to agree to the recommendations.

Consultation(s)

The Government expects local authorities to use their discretionary relief powers to grant these reliefs.

The Retail Hospitality and Leisure Relief, Supporting Small Business Relief, the scheme for local newspaper discount, scheme for low-carbon heat networks, Hardship Relief, Rural Rate Relief and Flood Relief. All of these (except the Hardship Policy) will be compensated in full for our loss of rates income because of these changes. This compensation will be paid by section 31 grant and calculated based on the returns that the council makes under the rates retention scheme.

The Council’s Discretionary Rate Relief Policy has been revised to reflect these changes.

Recommendations

1. It is agreed by Full Council that the Revenues Manager continues to have delegated authority to make decisions up to the NNDC cost value of £4k as indicated in Appendix A.

2. It is agreed by Full Council that the Revenues Manager has delegated authority to make Hardship Relief decisions up to the NNDC cost value of £4k as indicated in Appendix C.

3. It is agreed by Full Council that the Rate Relief Policy is revised as indicated in Appendix A, B and C.

Reasons for recommendations

The new policy will enable the Retail Hospitality and Leisure Relief, Supporting Small Business Relief, the scheme for local newspaper discount, scheme for low-carbon heat networks, Hardship Relief, Rural Rate Relief and Flood Relief to be awarded discretionary reliefs.

Background papers

1. In the Budget on 22 November 2023 the Chancellor announced the Government would extend the award of 75% Retail, Hospitality and Leisure Relief for properties up to a cash limit of £110,000 per business for the 2024/25 financial year.

2. In the Budget on 17 November 2022 the Chancellor announced a new Supporting Small Business (SSB) Relief scheme which will cap bill increases at £600 per year for any businesses that had a Rateable Value (RV) increase from 1 April 2023 caused by the revaluation and consequently lost Small Business Rates Relief or Rural Rate Relief.

3. In the Spring Statement on 23 March 2022 the government announced it would bring forward to 1 April 2022 100% relief for low-carbon heat networks.  

4. On 27 January 2020, the Financial Secretary to the Treasury made a Written Ministerial Statement announcing additional business rates measures that will apply from 1 April 2020 including the extension of the £1,500 business rates discount for office space occupied by local newspapers that will apply for an additional 5 years until 31 March 2025. The scheme will be available to local newspapers that occupy office space. Under the scheme, eligible local newspaper businesses will continue to receive up to a £1,500 discount on their bill for the 2022/23 financial year.

5. The 2016 Autumn Statement confirmed the doubling of rural rate relief available to eligible businesses from 50% to 100%. The Government subsequently set out their intention to amend the relevant primary legislation to require local authorities to grant 100% mandatory rural rate relief. Following the decision not to reintroduce the Local Government Finance Bill, for 2018/19 the Government expects local authorities to continue to use their discretionary relief powers to grant 100% rural rate relief to eligible ratepayers in 2022/23, as they have done previously. From 1 April 2024 the discretionary 50% rural rate relief top up has been replaced so local authorities can grant 100% mandatory rural rate relief instead.

6. Under section 49 of the Local Government Act 1988 businesses can apply for Hardship Relief. This scheme has now been incorporated within this rate relief policy. The cost of this scheme is funded in accordance with the Non-Domestic Rates financial retention rules.

8. Under the government’s flood recovery framework, businesses can apply for Flood Relief. This scheme has now been incorporated within this rate relief policy. Businesses can receive a minimum of 3 months rate relief. The cost of this scheme is fully funded by government.

Wards affected

All

Cabinet member(s)

Cllr Lucy Shires

Contact Officer

Sean Knight

Revenues Manger

Sean.Knight@north-norfolk.gov.uk

Links to key documents:

Corporate Plan:          

Strong Responsible & Accountable Council.

Medium Term Financial Strategy (MTFS)                                

The NNDR Discretionary Rate Reliefs approved by Members will be used for calculating the NNDR1 which feeds into the budget setting process and is part of the Medium-Term Finance Strategy.

Council Policies & Strategies

Budget Setting & Medium-Term Finance Strategy.