Issue - meetings

This report seeks agreement on a proposed programme of activity to support our local economy using funding through the Business Rate Pool (Shared Growth Fund).

Careful consideration was given to a proposed programme of activity to support the borough’s local economy using funding through the Business Rate Pool (Shared Growth Fund). 

Under the national business rates retention scheme, local authorities were able to come together, on a voluntary basis, to pool their business rates, giving them scope to generate additional growth through collaborative effort and to smooth the impact of volatility in rates income across a wide economic area.  Membership in the pool has enabled the Council to access the Shared Growth Fund, which is estimated to be at £1.125m by the end of 2025/26, to finance projects aligned with local and county strategic priorities. The proposed programme at Annex 1, was based on local and county wide strategies and had received approval from Kent County Council.

Cabinet had due regard to the financial and value for money considerations and noted that due to the impending business rate affects affecting local government finance, it was currently unknown as to what level of growth, if any, would be retained through the Pool after 2026/27. Furthermore, due regard was given to the potential risks across the programme.  These risks would be reviewed on an ongoing basis and plans put in place to ensure that the impact and likelihood are minimises where feasible.

On the grounds that there would be investment in the local economy to help support residents and businesses and the programme would foster sustainable growth, Cllr Taylor proposed, Cllr Betts seconded and Cabinet

RESOLVED: That the proposed Business Rates Pool (Shared Growth Fund) Programme, as set out in Annex 1, be approved.

(Decision Notice D250073CAB)

Careful consideration was given to a proposed programme of activity to support the borough’s local economy using funding through the Business Rate Pool (Shared Growth Fund). 

Under the national business rates retention scheme, local authorities were able to come together, on a voluntary basis, to pool their business rates, given them scope to generate additional growth through collaborative effort and to smooth the impact of volatility in rates income across a wide economic area.  The Council rejoined the Kent Business Rates Pool in April 2023, after improvements in local business rates income due to major commercial developments.  Membership in the pool enabled the Council to access the Shared Growth Fund, collaboratively managed with Kent County Council, which financed projects aligned with local and county strategic priorities.  The selected projects were based on local and county wide strategies and had received approval from Kent County Council.

By the end of 2025/26, funding for the Shared Growth Fund was estimated at around £1.125m.  However, upcoming business rate reforms may impact future income retention beyond 2026/27.

RESOLVED: That the proposed Business Rates Pool (Shared Growth Fund) Programme, as set out in Annex 1, be approved.