Decision details

Local Government Resource Review Business Rates Reform

Decision Maker: Cabinet,

Decision status: Information Only

Is Key decision?: No

Is subject to call in?: Yes

Decisions:

The Director of Finance reported upon Phase I of the Local Government Resource Review (LGRR) which was launched by the Government on 17 March 2011. The vision was of 'self-funded' councils that kept their local business taxes with Government grant dependence scaled back except where it was needed to protect the interest of taxpayers.

 

On 18 July 2011 a consultation had been issued in relation to Business Rates Reform which was due to conclude on 24 October 2011. The headline was that through a series of tariffs and top-up payments local authorities would receive the same share of Government support in 2013/14 as from Formula Grant in 2012/13. The subsequent release of eight technical papers had provided additional commentary on the consultation proposals.

 

The LGRR sought to change the distribution of funding for local authorities rather than the system of taxation and so Business Ratepayers would be unaffected. The Government intended to put the required legislation in place during 2012 in order that the funding changes could be implemented for the 2013/14 financial year.

 

The Leader of the Council commented that these proposals had been discussed at the Liverpool City Region Cabinet as they would adversely affect all Merseyside authorities. He invited the two other political groups to join in with any lobbying groups regarding the proposals.

 

The Leader also paid tribute to Councillors J Green and T Harney for joining him in putting forward the Council’s case on local government financing at their recent meeting with Bob Neill, Parliamentary Under Secretary of State at the Department for Communities and Local Government.

 

Resolved -

 

(1)  That responses to the consultation are made which protect, as far as possible, the Council and which support the responses from SIGOMA (Special Interest Group of Metropolitan Authorities) and the Liverpool City Region and that the Council associates itself with any lobbying groups regarding the proposals.

 

(2)  That, recognising that the further papers require detailed technical analysis which is taking place during September and October, the detailed Council response be reported to the next meeting of Cabinet.

Publication date: 28/09/2011

Date of decision: 22/09/2011

Decided at meeting: 22/09/2011 - Cabinet

Effective from: 06/10/2011

Accompanying Documents: