At the meeting of the Council Excellence Overview and Scrutiny Committee held on 12 July 2011 (Minute no 14 (3) refers), the Director of Finance had reported that the Government had launched the Local Government Resource Review, the vision of which was of ’self funded’ councils that kept their local business taxes, with central grant dependence scaled back, except where it was needed to protect the interests of taxpayers.  The review was expected to conclude in July 2011 and it had been noted that part of the first phase of it was to consult interested parties, including businesses of all sizes.  Although the Government had stated that councils which were more deprived would continue to receive Government support, the Director had indicated that the main risk would be financial, as Wirral collected less than it received back from the Government in grant support.

The whole process would feed into the Local Government Financial Settlement 2013/14 and the Director when responding to Members’ comments had told them that all options currently put forward would see Wirral losing out but this only formed one element of local government finance.

The Committee had expressed its concern that the business rate option, as understood, placed Wirral in a difficult situation unless other funding streams replaced them and referred its concerns to the Cabinet.

The Cabinet considered the Committee’s Minute in respect of the Local Government Resource Review (Minute No. 14 refers) and were informed that no one would be adversely affected in the first year but in the second year Wirral would loose out.

RESOLVED: That

(1)  the Director of Finance be requested to present a report on the Localisation of Business Rates to the next meeting of the Cabinet on 22 September 2011; and

(2)  Councillor P Davies be requested to discuss the implications to Wirral of the business rate option when he meets with Bob Neill MP, Parliamentary Under Secretary of State for Communities next week.