Issue - meetings

To receive a report of the Head of Finance regarding the calculation for the NNDR for 2015/16.

The Cabinet had before it a report* of the Head of Finance providing it with an update of the income generation and financial implications of the number of business Rate properties in Mid Devon and requesting it to approve the NNDR1 (estimated income to be generated in 2015/16 from business rates). 

a)    The calculation of the NNDR1 net yield be noted and approved for 2015/16;

b)    That the proportions distributed to the respective authorities and central government be allocated as per the statutory regulations; and

c)    Central Government will reimburse the Council through a Section 31 grant to compensate it for the reduction in collectable business rates as a result of introducing further reliefs was noted and approved

The Cabinet had before it a report* of the Head of Finance providing it with an update of the income generation and financial implications of the number of business Rate properties in Mid Devon and requesting it to approve the NNDR1 (estimated income to be generated in 2015/16 from business rates).

The Cabinet Member for Finance outlined the contents of the report stating that prior to 1 April 2013; all billing authorities collected the business rates in their area and passed this money onto a central government pool. The pool was then redistributed to local authorities throughout the country based on their needs, resources and services they provide to their community. From 1 April 2013, central government changed the way this financing was distributed. Each billing authority now had to forecast the amount of revenue it would generate from business rates and then redistribute that income between central government, the county council, the fire authority and itself, based on a centrally prescribed formula. The Business Rates Retention Scheme as it was now known, also allowed the billing authority to keep a share of the increase in revenue it generated, therefore encouraging billing authorities to encourage business growth in its area.

RESOLVED that:

a)    The calculation of the NNDR1 net yield be noted and approved for 2015/16;

b)    That the proportions distributed to the respective authorities and central government be allocated as per the statutory regulations; and

c)    Central Government will reimburse the Council through a Section 31 grant to compensate it for the reduction in collectable business rates as a result of introducing further reliefs was noted and approved

(Proposed by the Chairman)

Note: *Report previously circulated; copy attached to the signed Minutes.