Decision Taken By: CABINET
Decision No: D110139CAB
Date: 12th October 2011
Decision(s) and Reason(s)
Local Government Resource Review: Proposals for Business Rates Retention Consultation Paper
Minutes
The report outlined the main proposals set out in the Department for Communities and Local Government consultation paper entitled 'Local Government Resource Review: Proposals for Business Rates Retention'. Consideration was given to a draft response to the questions asked in the consultation paper and the accompanying eight technical papers.
Concern was expressed that the proposals would not contribute to local authorities' financial autonomy as originally advocated and many could become worse off, experiencing greater risk and the need to hold increased reserves to cope with a higher volatility of income, coupled with the creation of a huge bureaucracy. In addition disappointment was expressed that there remained an inherent unfairness in Tonbridge and Malling that the business community would continue to pay more into the national pot than received back to facilitate their own growth and survival, creating a disincentive to investment in the area.
The Cabinet thanked the Chief Accountant and Revenue and Benefits Manager for their work in preparing the report.
The Cabinet resolved that the draft responses to the questions asked in the consultation paper and accompanying eight technical papers, set out at Annexes 3 and 4 to the report respectively, outlining the Government's proposals for a business rates retention system be approved for submission to the Department for Communities and Local Government by the return date of 24 October 2011 subject to amendment of the commentary at Annex 3:
• to indicate that the Council does not support the proposals for the above reasons and wishes to retain the current system; and
• to highlight the unfairness experienced by the business community in the Borough.
Reasons: As set out in the report of the Director of Finance and to reflect the concerns expressed at the meeting and summarised above.
Signed Chief Executive: D Hughes
Date of Publication: 14 October 2011
This decision will come into force and may then be implemented on the expiry of 5 working days after publication unless it is called in.