Decision details

The Government is introducing pilot schemes in 2017/18 in advance of full 100% business rate retention later in the parliament.  Only authorities with signed devolution deals are eligible to be in a pilot: the pilot for the West of England would therefore include B&NES, Bristol and South Gloucestershire.  The 100% pilot would give the West of England authorities the opportunity to retain 100% of any business rates growth over the next two to three years, with no downside financial risk.  It also gives the West of England authorities the opportunity to help shape the national scheme.

The Cabinet Member agrees that:

(i)  B&NES joins a 100% business rate retention pilot with Bristol and South Gloucestershire in 2017/18, subject to the final ratification of the Order for the West of England Devolution Deal.

(ii)  The principles of the 100% business rate retention pilot proposed by the Department for Communities and Local Government (DCLG) on the basis that the pilot will not leave any of the pilot authorities in the West of England any worse-off in financial terms.

(iii)  The final decision on the terms of the pilot following DCLG issuing a detailed proposal later in October 2016 be delegated to the Council’s Chief Financial Officer in consultation with the Cabinet Member for Finance & Efficiency.

(iv)  The funding streams that are proposed for the 100% business rate retention pilot, as set out in the supporting report, are approved.

(v)  Agreement on the terms of a Memorandum of Understanding governing the redistribution scheme to ensure that no individual Authority can receive less than it would have done under the existing 50% scheme be delegated to the Council’s Chief Financial Officer.

It gives the three local authorities and the Combined Authority within the Pilot the ability to maximise their potential for additional business rates retention with no additional downside risks.

There is no additional risk from the funding transfers to which the Pilot is agreeing and there is scope to expand the Pilot in 2018/19 to include a wider range of services and funding streams.

None, there are no other pilot options available.