Agenda item

The attached report presents a proposed amendment to the National Non Domestic Rates Retail Discount Scheme approved in February 2019 and a proposed National Non Domestic Rates Pub Discount Scheme for 2020/21.

The Portfolio Holder for Resources, Councillor Joyce Plummer, presented report onan amendment to the National Non Domestic Rates Retail Discount Scheme approved in February 2019 and the proposed National Non Domestic Rates Pub Discount Scheme for 2020/21.

Retail Discount Scheme

The National Non Domestic Rates Retail Discount Scheme for 2019 and 2020 was a temporary scheme announced by the Government in its October 2018 Budget.  This was a Government funded, two-year scheme available nationally and delivered under Council’s Discretionary Rates Relief powers under Section 47 of the Local Government Finance Act 1988.  The Retail Discount Scheme was available to eligible ratepayers from 1 April 2019 to 31 March 2021.

In 2019/20, the Retail Discount Scheme was implemented to support the local retail economy by providing businesses with a rateable value of less than £51,000 with a discount of one third after other reliefs have been applied.  The discount was fully funded by Government grants made under Section 31 of the Local Government Act 2003 and the Council had taken a proactive approach by automatically applying the relief to qualifying accounts and having an opt-out policy rather than application led process. 

In January 2020, Government had announced an increase in the value of the Retail Discount from one third of an eligible bill to 50% of an eligible bill.  As the Retail Discount was intended to be a temporary scheme, the Government had not made changes to relevant legislation and instead asked that billing authorities use their discretionary powers under section 47 of the Local Government Finance Act 1988 as amended by section 69 of the Localism Act 2011 to deliver the discount.  As a discretionary scheme, it required Council approval.

Subsidy for the relief would be made to the Council and its preceptors through a Section 31 Grant and as such the scheme was cost neutral to the Council.

As outlined in Government guidance issued by MHCLG, eligible businesses would be occupied properties being used wholly or mainly as shops, restaurants, cafes and drinking establishments.  Section 2 of the Retail Discount Scheme set out in detail which types of businesses would and would not be eligible for the discount. 

For 2020/21, the scheme had been extended to include cinemas and music venues and those amendments had also been made to the Council’s Policy.

Initial estimates indicated that around 175 businesses might benefit from this discount worth over £550k in total.

Pub Relief Scheme

In addition to its announcement to increase the Retail Discount, Government had announced in January 2020 a one-year Pub Discount of up to £1,000 for the financial year 2020/21. 

As is the case with the Retail Discount outlined above, Government had not made changes to relevant legislation and again was asking that billing authorities use their discretionary powers under section 47 of the Local Government Finance Act as amended by section 69 of Localism Act 2011 to deliver the discount.  As a discretionary scheme, it required Council approval.

The Pub Discount would be fully funded by Government grants made under Section 31 of the Local Government Act 2003 and the Council intended to take a proactive approach by automatically applying the discounts to qualifying accounts and having an opt-out policy rather than application led process. 

Initial estimations indicated that around 40 businesses might benefit from this discount worth over £35k in total.

Resolved                      -      That Council approves both the amendment to the National Non Domestic Retail Discount Scheme as set out at Appendix 1 to the report and the National Non Domestic Rates Pub Discount Scheme 2020/21 as set out at Appendix 2 to the report.