Agenda item

To submit a report by the Director of Function (Resources)/Section 151 Officer.

The report of the Director of Function (Resources)/Section 151 Officer regarding the adoption of a Discretionary Business Rates Relief Framework for Charities and Non-Profit Making Organisations for the financial years up to 31 March, 2026 was presented for the Executive’s consideration.

The Portfolio Member for Finance reported that the Discretionary Business Rates Relief  Framework has been presented for the Executive’s approval on an annual basis  and as the document states, Local Authorities in Wales must grant mandatory rate relief to charities provided for within the Local Government Finance Act 1998 (LGFA88) as amended by the Local Government Act 2003. Under the LGFA88, local authorities can also grant discretionary relief or remission from rates up to 100% of the rates payable for properties occupied by charities (20% top-up in addition to 80% mandatory relief) and other non-profit making organisations. On 18 February, 2019 the Executive decided to extend its Discretionary Business Rates Relief  Framework – Charities and Non-Profit Making Organisations for the 2019/20 financial year and to conduct a public consultation on the framework with a view to implementing a revised framework (if applicable) on 1 April, 2020. A 3 tier consultation was undertaken under the Council’s Consultation and Engagement Plan Quarter 1 which closed on 31 August, 2019 and contact was made with all taxpayers eligible for discretionary relief under the current policy. Although the response was disappointing (only 4 respondents with 2 of those doing so anonymously) the lack of response suggests that there is a general acceptance of the current policy with no aspects being seriously challenged. Having regard to the limited response received, it is therefore proposed that the current policy is not changed but that the practice of extending the policy on an annual basis be replaced by a fixed term period aligned to the quinquennial revaluation cycle. (Although the next non-domestic rates revaluation in Wales will take place in 2021 the proposal is to adhere to the current policy until the subsequent revaluation in 2026). Members can elect to amend the framework during this period but notice of at least one full financial year has to be given to ratepayers.

The Director of Function (Resources)/Section 151 Officer confirmed that the current cost of the scheme to the Council is £64,338 which is covered by a £70k provision in the draft budget for 2020/21.

It was resolved –

•           To adopt a Discretionary Business Rates Relief Framework – Charities and Non-Profit Making Organisations as detailed in Appendix C to the report.

•           That the Discretionary Business Rates Relief Framework will apply for the financial years up to 31 March, 2026.

•           To instruct the Director of Function (Resources)/Section 151 Officer to ensure that the administrative procedures before 31 March, 2020 advise relevant charities and non-profit making organisations that the policy will apply from 1 April, 2020 and will cease on 31 March, 2026.