A report by the Deputy Chief Executive/Director of Finance set out the details of issues that had arisen from the Localism Act 2011 which gave local authorities the power to award discounts, including Enterprise Zone discounts, from 1 April 2012.

Members were informed that discounts awarded under the new powers would be funded by the Council awarding them.  However for discounts awarded in Enterprise Zones the Government had agreed to fund up to 100% of the discounts awarded during the period 1 April 2012 to 31 March 2015.  They would be funded for five years from the date they were granted.  Therefore, a business that entered the zone in a designated area on 31 March 2015 would be entitled to the discount until 31 March 2020, funded by the Government.

These discounts were covered by the European Union De Minimis Aid rules on state aid funding and were currently subject to 200,000 Euros limit over a three year period. This had the effect of limiting the award to £55,000 per annum to an individual business.  The maximum discount amount over a five year period could be £275,000.  The maximum discounted Rateable Value would be £122,000.

RESOLVED:

That a Business Rate discount of 100% be granted for properties designated within specified areas of the Mersey Waters Enterprise Zone (Wirral site) to be awarded from 1 April 2012.