To receive a presentation on the NNDR Discretionary Relief Policy.

The Head of Revenues and Benefits delivered a presentation on the Non Domestic Rates Discretionary Relief Policy and provided the Committee with an update regarding the following:-

·         The department were currently in the process of reviewing arrangements for awarding rate relief prior to a public consultation.

·         The existing regime had been in place since 1990, it was explained that although the authority had been operating a Discretionary Relief Policy, it had never been formally endorsed by Members.  The plan would go out to consultation in August 2014 and subsequently be ratified by the Executive.

·         The uniform approach was required due to historical slight differences between the North and South of Central Bedfordshire.

·         The local authority had a vested interest in collecting Business Rates as we now retain some of the money ourselves.

·         The next steps were to consult in the summer, following which a detailed paper would be brought forward to the OSC in September 2014 prior to Executive in January 2015.  If the proposal was endorsed the Council would write to all recipients with the new rate relief amounts they were entitled to.

In response to the presentation and the further clarification provided, the Committee discussed the following issues in detail:-

·         The degree of effort made by the department to inform businesses of possibility of rate relief.  The Head of Revenues and Benefits explained that a detailed leaflet was sent with every bill and that the information contained therein provides full information regarding rate relief.  The new national relief introduced in April 2014 targeted the High Street, shops and retailers, was initially a 12 month initiative.  It was anticipated however that this assistance would continue.

·         The checks that were made to ensure charities were genuine and so qualified for relief.  The Head of Revenues and Benefits explained that information was rigorously checked and the Council would visit premises if there were any suspicions with regards to authenticity.

·         Whether charities were informed of the relief they may be entitled to.  The Head of Revenues and Benefits confirmed that most charities were very knowledgeable about entitlement.  If however the team saw information on an organisation which appeared to have obvious charity status they would be proactive and send the relevant form to them.  It was better to calculate the correct entitlement and offer the relief they should be receiving straight away rather than charge too much and then have to recalculate several months down the line.

·         Whether local charities affiliated with national bodies were treated as an individual unit or their revenue would be ‘pooled’.  The Head of Revenues and Benefits confirmed that local charities would be treated as separate units and their individual circumstances looked at respectively.

·         Whether farms were classed as rural businesses.  The Head of Revenues and Benefits confirmed this was not the case and that agricultural farms were exempt from paying business rates.

·         Concerns regarding rural employment and the business being located near to where a person lived and the impact that had upon the local area.  The Head of Revenues and Benefits explained that the department would look at the number of employees who work in the rural location and use their discretion where necessary.

·           Concerns regarding charities being penalised by having to spend their reserves before qualifying for rate relief.  The Head of Revenues and Benefits confirmed the Council would look at the last audited accounts.  The Chief Finance Officer confirmed that close dialogue would be undertaken with charities in this situation by asking why they had possible reserves and what they needed them for. The Council would work with them to obtain the correct outcome for them.

RECOMMENDED that the NNDR Discretionary Relief Policy be fully supported by the Committee.