Issue - meetings

Background:

This report presented a review of the current procedures for granting relief from National Non-Domestic (Business) Rates. The Localism Act 2011 had introduced a new power for local authorities to award a local discretionary relief where it was in the council tax payers’ interests to do so. The cost of any such discount would be borne entirely by the local authority until 31 March 2013 after which it would be shared 50% by the Government, 49% by Medway Council and 1% by Kent & Medway Fire & Rescue Authority.

The report stated that the Council’s current guidelines met the balance between affordability to the Council of granting relief and the benefit that a particular organisation provided to the local community. It was noted that national charity shops were automatically awarded top-up discretionary rate relief without any need to demonstrate they were contributing to the Medway area. The new local discretionary rate relief gave the Council absolute discretion to help any organisation. However, contributing 49% of the funding meant that the cost borne by the Council would be fairly high.

The Portfolio Holder for Finance referred to a letter tabled at the meeting from David Frais, who ran a business in Chatham High Street, which had been also signed by 31 other Chatham Town Centre traders, which requested business rate relief.

Reasons:

Relief from business rates where appropriate is a crucial factor in the survival of many voluntary organisations that support the educational, cultural and economic well being of the Medway area. An equitable and affordable procedure for the award of such relief is a necessary part of the Council’s administrative process.

Until an appropriate set of circumstances arises it is not possible to formulate guidelines or budgetary implications to support the introduction of a new local relief.