This Council recognises that there are merits in local authorities retaining the business rates they collect in their area.

However, Council also recognises:

•   That as this shift in Local Government Finance progresses, it is becoming increasingly clear that the full benefit in terms of long term stability of revenue, is being undermined by the need to set aside a significant sum year on year to ‘insure’ against business rate appeals.

•   That whilst Government is addressing imbalances between authorities through tariffs and top-ups so that business rate retention does not create unfair windfalls or losses, it is not addressing the fact that Councils with a large business rate base are having to set aside such large amounts that could otherwise be spent on services and supporting extra economic growth.

•  That Trafford is currently setting aside £40 million for this purpose.

Council therefore believes that since the nature of successful business rate appeals are most commonly based on issues outside the council’s control but are often highly local in their impact, it would be appropriate for national government to carry more of this risk.

Council therefore calls upon the Chief Executive to make representation to DCLG detailing the amount that Trafford is currently setting aside for Business Rate Appeals and calling upon the Secretary of State to make changes to relieve Trafford of this burden either through using revenue from the 'central list' or other sources.

(Note: As the owner of a company that had received a business rates reduction, Councillor Myers declared a personal interest in this matter and remained in the meeting during its consideration.)

It was moved and seconded that:

“This Council recognises that there are merits in local authorities retaining the business rates they collect in their area.

However, Council also recognises:

•   That as this shift in Local Government Finance progresses, it is becoming increasingly clear that the full benefit in terms of long term stability of revenue, is being undermined by the need to set aside a significant sum year on year to ‘insure’ against business rate appeals.

•   That whilst Government is addressing imbalances between authorities through tariffs and top-ups so that business rate retention does not create unfair windfalls or losses, it is not addressing the fact that Councils with a large business rate base are having to set aside such large amounts that could otherwise be spent on services and supporting extra economic growth.

•  That Trafford is currently setting aside £40 million for this purpose.

Council therefore believes that since the nature of successful business rate appeals are most commonly based on issues outside the council’s control but are often highly local in their impact, it would be appropriate for national government to carry more of this risk.

Council therefore calls upon the Chief Executive to make representation to the Department for Communities and Local Government detailing the amount that Trafford is currently setting aside for Business Rate Appeals and calling upon the Secretary of State to make changes to relieve Trafford of this burden either through using revenue from the 'central list' or other sources.”

Following speeches in support, the Motion was agreed unanimously by the Council.

RESOLVED: That this Council recognises that there are merits in local authorities retaining the business rates they collect in their area.

However, Council also recognises:

•   That as this shift in Local Government Finance progresses, it is becoming increasingly clear that the full benefit in terms of long term stability of revenue, is being undermined by the need to set aside a significant sum year on year to ‘insure’ against business rate appeals.

•   That whilst Government is addressing imbalances between authorities through tariffs and top-ups so that business rate retention does not create unfair windfalls or losses, it is not addressing the fact that Councils with a large business rate base are having to set aside such large amounts that could otherwise be spent on services and supporting extra economic growth.

•  That Trafford is currently setting aside £40 million for this purpose.

Council therefore believes that since the nature of successful business rate appeals are most commonly based on issues outside the council’s control but are often highly local in their impact, it would be appropriate for national government to carry more of this risk.

Council therefore calls upon the Chief Executive to make representation to the Department for Communities and Local Government detailing the amount that Trafford is currently setting aside for Business Rate Appeals and calling upon the Secretary of State to make changes to relieve Trafford of this burden either through using revenue from the 'central list' or other sources.