Issue - meetings

Report of Chief Finance Officer

Lead Cabinet member: Councillor Bill Giles

(Non-key decision):

(1) To agree that Wealden District Council be nominated as the lead authority.

(2) To agree that Lewes District Council pilots 75% business rates retention, resulting in an additional anticipated gain of £0.1m over current pooling arrangements.

(3) To agree the basic principle that no authority would receive a lower level of funding than they would have received without the pool.

(4) To agree to split resources gained on the growth in business rates on the basis of the split being 26% to East Sussex County Council, 5% to the Fire authority and the remaining 44% split amongst the District/Borough Councils;

(5) To agree the financial stability and economic development split of funding.

(6) To agree that the finalisation of the Memorandum of Understanding is delegated to the Chief Finance Officer.

The Cabinet considered the report of the Chief Finance Officer, updating members on the East Sussex Business Rates Pilot bid for 2019/20.

The government had announced in December 2017, the aim of increasing the level of business rates retained by local government from the current 50% to the equivalent of 75% in April 2020. Local authorities were invited to apply to become 75% business rate retention pilots in 2019/20 and East Sussex County Council’s bid was announced as successful on 6 December 2018.

Currently the County Council, Districts and Boroughs and the Fire Authority was in a 50% pool. Table 2 indicated the potential 75% Pilot gain over the current pool. It was clarified that the income anticipated in the report were not guaranteed and therefore was not included in the revenue estimates for 2019/20 in agenda item 7.

Resolved (Non-key decision):

(1) To agree that Wealden District Council be nominated as the lead authority.

(2) To agree that Lewes District Council pilots 75% business rates retention, resulting in an additional anticipated gain of £0.1m over current pooling arrangements.

(3) To agree the basic principle that no authority would receive a lower level of funding than they would have received without the pool.

(4) To agree to split resources gained on the growth in business rates on the basis of the split being 26% to East Sussex County Council, 5% to the Fire authority and the remaining 44% split amongst the District/Borough Councils;

(5) To agree the financial stability and economic development split of funding.

(6) To agree that the finalisation of the Memorandum of Understanding is delegated to the Chief Finance Officer.

Reason for decisions:

The Government has invited councils to apply to be pilots of 75% rates retention. Based on the independent assessment carried out by LG Futures, the Council is anticipated to benefit from the proposed arrangements. The report sets out the background to the pilot and informs Cabinet of the latest position.