Decisions

On the 27 January an Officer Delegated Decision was made to delegate the power to affix the Council seal to a list of designated officers. An administrative error resulted in the list being incomplete. The updated list containing the missing detail has now been uploaded and this decision approves the amended list

To authorise the named officers on the updated authorisation sheet to affix the Council seal.

This report presents the financial monitoring information for the Authority as a whole for the financial year 2021/22, using information available as at the end of December 2021.

This report gives details of performance against the Council’s Treasury Management Strategy Statement 2021/22 for the first nine months of 2021/22.

As part of the re-opening of the recycling Centres during COVID-19 restrictions in 2020, a booking system was introduced at the Midsomer Norton and Bath Recycling Centres.

The booking system received positive feedback from site users. Surveys indicate overwhelming support for it to remain in place now that COVID restrictions have been removed as the system eases congestion, speeds up visits and makes for a more pleasurable customer experience

Retaining the booking system provides several benefits; residents have certainty that they will be able to access the site at the time booked and no wasted trips as the site is too busy; it reduces vehicle queues and the associated pollution from idling engines, alongside removing any congestion on the surrounding road network.

Keynsham Recycling Centre would remain as a site with no booking system, so that residents can access this at any time during opening hours.

To fund the position of a Renewables Programme Manager to develop the renewable energy programme and expand renewable energy generation. The council has declared a climate emergency and set a target to achieve net zero by 2030. Analysis has identified increasing renewable energy generation as a key component of achieving net zero.

To fully approve capital amounting to £200k funded from the provisional capital budget for Renewable Energy in B&NES.

Through this project the Council's Parks and Open Spaces department will deliver much needed capital investment in the five council-owned/maintained parks and open spaces in the vicinity of Mulberry Park and new allotment provision within the vicinity as per the conditions of planning application (14/04354/EOUT) for Mulberry Ministry Of Defence Foxhill Premises, Bradford Road, Combe Down, Bath. This scheme will also include the provision of new allotments at Combe Down as per allocations in the 20/21 CIL IDP list.

Approve capital expenditure of £558K to deliver the programme, funded from developer receipts

The agreement of new terms of reference for an Advisory Board that will make recommendations for spending the receipts from The Community Infrastructure Levy (Neighbourhood Portion for Bath)

To increase the installation of solar PV panels at Charlton House Care Home and make modifications which include improvements to the hot water system. These works of £84k will be added to the £442k grant funded project for the Public Sector Decarbonisation Scheme for Charlton House Care Home to help make the site more energy efficient through energy reduction and on site renewable energy generation.

To fully approve capital amounting to £84k funded from the Renewable Energy Development Fund for Charlton House Care Home.

The authority is required under paragraph 40 of schedule 1 to the Local Government finance Act 2012 to make calculations, and supply information on their anticipated collectable business rate income for the following year. This report sets out the calculations and seeks approval by the Council’s Chief Financial Officer. These figures will form part of the funding in relation to the Council’s 2022/23 budget.

The Local Government Finance Act 2012 amended the 1988 Local Government Finance Act to give local authorities the power to retain a proportion of funds obtained from business rates collected in their area.

The Department for Levelling Up, Housing and Communities guidance requires each billing authority should formally set a Business Rate baseline each year. This baseline will be the authority’s estimate of the business rates it forecasts to collect in the following financial year, net of any reductions such as reliefs and the estimated cost of appeals.

The Government introduced pilot schemes in 2017/18 in advance of permanent reforms to business rate retention later in the parliament. Initially only authorities with signed devolution deals were eligible to participate in a pilot in 2017/18. The pilot for the West of England (WoE) commenced in 2017/18 and includes Bath & North East Somerset Council, Bristol City Council, South Gloucestershire Council, and the West of England Combined Authority.

The 100% pilot gives the WoE the opportunity to retain 100% of any business rates growth over the next year, with no downside financial risk when compared to remaining in the national system. It also gives the WoE the opportunity to help shape the national scheme.

In line with the Government’s stated intention for the reforms to the Business Rate Retention system, authorities participating in a pilot will not have to pay a Levy on growth above their Retained Income target and will retain an increased Local Share of Non-Domestic Rating Income and sums due from Government paid via Section 31 grant. The Pilot includes the rolling in of the Revenue Support Grant with WECA receiving a small share of the business rates to reflect the rolling in of the DfT Integrated Transport Block and Highways Maintenance Capital Grants; this is shown in Table 1 below.

In line with the approval process for the Council Tax Base, the decision on the Business Rate forecast is delegated to the Council’s Chief Financial Officer. The Department for Levelling Up, Housing and Communities requires the council to submit details of its forecast through a statutory return called the NNDR1. This return must be submitted by 31st January 2022.

The estimated business rate income for 2022/23 is £56.262m; of this the Council retains £13.293m after the tariff payment to the Government is taken into account. A breakdown is shown in Table 1 below.

Table 1 Business Rate Distribution

Anticipated Business Rate Distribution 2022/23
£m
Bath & North East Somerset Council Business Rate Income (Total business rates collected after deductions) 56.262
Central Share to Government 0.000
5% Share to WoE Combined Authority (2.813)
1% Share to Avon Fire Authority (0.563)
Deductions for Tariff (39.593)
Bath & North East Somerset Council estimated retained Business Rates 13.293

As in previous years, the Government has announced a series of measures that continue to affect the business rates income of Local Authorities in 2022/23. These changes are:

i. Capping the increase in the business rates multiplier at CPI instead of RPI with effect from 1 April 2018.

ii. Freezing of the business rates multiplier in 2021/22 and 2022/23.

iii. Capping the increase in the business rates multiplier at 2% in both 2014/15, 2015/16 and post 2018/19 (rather than it increasing in line with September RPI increases of 3.2% and 2.3%).

iv. The doubling of Small Business Rate Relief made permanent from 1st April 2017 with changes to eligibility thresholds.

v. The doubling of rural rate relief to be awarded through discretionary relief until such time as the Government can make the necessary changes to primary legislation.

vi. Discretionary relief of £1,500 in respect of the office space occupied by local newspapers. Extension of the scheme for a further 5 years until 2024-25 was announced in January 2020; and

vii. A 100% relief for public lavatories. This scheme was announced at Budget 2018 and was implemented by the Non-Domestic Rating (Public Lavatories) Act 2021.

viii. The 2022/23 Retail, Hospitality and Leisure Business Rates Relief Scheme will provide eligible, occupied, retail, hospitality and leisure properties with a 50% relief, up to a cash cap limit of £110,000 per business.

ix. Extension of the current transitional relief scheme and the supporting small business scheme for one year to the end of the current revaluation cycle. The scheme will restrict increases in bills to 15% for businesses with small properties (up to and including £20,000 rateable value) and 25% for medium properties (up to and including £100,000 rateable value).


All the above measures will be compensated through payment of a section 31 grant. The Council has estimated the impacts of these reliefs and has included the estimate of grant income in its 2022/23 budget.

The Council’s budget for 2022/23 also reflects transactions relating to the business rate pooling arrangements within the West of England City Region Deal agreement. These arrangements have been set out in previous budget reports.

The Section 151 Officer is required to estimate the amount of any surplus or deficit on the Collection Fund relating to Business Rates as at 31st March 2022. This must be done by the 31st January 2022, and this report also asks the Director of Finance to approve the balance projected related to Business Rates.

As a result of pressures associated with the Coronavirus pandemic, and the potential for authorities to estimate larger-than-normal deficit on the 2020-21 Collection Fund, the Government introduced legislation to allow authorities to spread certain elements of the estimated deficit on the 2020-21 Collection Fund over the three years 2021-22 to 2023-24.

After calculations of current year collection and adjustments to the business rate base in 2021/22, including making provision for appeals, it is estimated that the 2021/22 collection fund account position relating to business rates will be in deficit by £22.194m (after adjustment of £0.988m for the 3 year spread allowance). The deficit will be shared between the Council, WECA and Avon Fire Authority in line the 100% pilot shares. The Council’s share of the deficit to be recovered in 2022/23 is £20.863m.


The 2021/22 Council’s share of the estimated deficit includes £18.506m which relates to the extended retail relief, which was introduced by government after the 2020/21 budget was set. The s31 compensation grant in respect of this change is to be received in 2021/22 and will be transferred to the Business Rates s31 Grant Reserve so it is available in 2022/23 to offset recovery of this element of the deficit.

The 2021/22 Council’s share of the estimated deficit also includes £4.036m which relates to the Covid Additional Relief Fund introduced by government on the 25th March. The fund will be available to support those businesses affected by the pandemic but that are ineligible for existing support linked to business rates. The s31 compensation grant in respect of this change is to be received in 2021/22 and this will also be transferred to the Business Rates s31 Grant Reserve so it is available in 2022/23 to offset recovery of this element of the deficit.

After allowing for these two elements of the forecast deficit which are funded by s31 grants, the Council’s share of the remaining balance is a surplus of £1.679m.

£0.988m of the 2020/21 forecast deficit is budgeted for recovery in 2023/24 in line with the Local Authorities (Collection Fund: Surplus and Deficit) (Coronavirus) (England) Regulations 2020 (SI 2020/1202). The Council’s share is £0.928m.

The overall position of the forecast 2022/23 business rate income and the forecast 2021/22 deficit on the collection fund have been taken into account in the overall Council’s budget proposal which will be presented to Council on the 15th February 2022.

That the calculation of the Council’s business rate forecast for the year 2022/23 as set out in this report be approved. The total forecast Business Rate income for 2022/23 is £56.262m, of which the Council will retain £13.293m after allowing for the required tariff payment of £39.593m and the WoE Combined Authority and Fire Authority shares as shown in Table 1 of the report.

That the projected deficit on the collection fund as at the end of 2021/22 related to Business Rates is declared at £22.194m (after adjustment of £0.988m for the 3 year spread allowance). The Council’s share of the deficit to be recovered in 2022/23 is £20.863m, which includes an estimated £18.506m in respect of the enhanced Retail Relief, and £4.036m in respect of Covid Additional Relief Fund, with both being compensated through government s31 revenue grant funding.

That £0.988m of the deficit is budgeted for recovery in 2023/24 in line with the Local Authorities (Collection Fund: Surplus and Deficit) (Coronavirus) (England) Regulations 2020 (SI 2020/1202). The Council’s share is £0.928m.

The Holburne Museum was founded in 1892 and is a registered charity. The Holburne Musuem is one of the Council’s partners for the Sydney Gardens Heritage Lottery Project. The museum has been managing the Gardeners Lodge since 2004 on a 24-year lease with the Council. An ambition of the project is to create a Creativity and Wellbeing Hub utilising both the Gardeners Lodge and the Community Pavilion.

In line with the Council’s Community Asset Transfer Policy, The Holburne Museum have submitted an expression of interest. This has been assessed by officers and meets the objectives of the CAT. The application for a Community Asset Transfer includes both buildings referred to above.

The council will seek approval from the Heritage Lottery to ensure that the transfer meets the criteria of the Lottery’s grant funding and agreement awarded to the Council in 2019.

Prior to a final decision being made, the Holburne Museum will be required to submit a Business Plan as part of Stage 3 of the CAT process.

Instruct officers to progress to stage 3 of the Community Asset Transfer which requires the Holburne Museum to submit a Business Plan and associated documentation, prior to a final decision being made. Will Godfrey, Chief Executive Officer has given his approval for the applicant to progress to stage 3.

The decision will be subject to contract and subject to approval by the Heritage Lottery.

To move provisional capital of £56k to fully approved for improvements to the ponds at Royal Victoria Park.

To fully approve budget of £56k, funded by CIL and currently held as provisional in our 2021/22 capital programme.

Public toilet provision within BANES has been impacted by the pandemic with the closure of public building facilities, shops, cafes and other non-essential services. It is proposed that the Ashton Way automatic public conveniences (APC) in Keynsham are bought back into use.

To fully approve capital contribution of £12.5k to bring the APC in Ashton Way into use. This will be funded by a contribution from the covid recovery grant.

A competitive procurement has been carried out followed by detailed scrutiny and evaluation of tender responses for the construction of the Pixash, Keynsham Recycling Hub. In order to secure programme certainty and mitigate risk of further cost inflation, due to the current material and labour market forces, a Limited Letter of Intent (LLOI) has been agreed with a preferred contractor. To protect the council's contractual position, this creates a financial commitment for advance site works, design development and discharge of planning conditions. This provides contractual certainty to commence early activity and place advance orders for steel (rebar and mesh) and secure supply-chain orders prior to the full scheme start, anticipated in March 2022, subject to full budget approval at February Council. In the event of being unable to enter into contract as planned, the council has agreed a cashflow spend of £1.1m for specific interim workstreams and termination costs. The LLOI overall is capped at £3.9m until March 2022, for the contractor as a FTSE100 company to comply under General Sox compliance and auditing.

Following the Council’s Climate Emergency declaration, the existing Sustainable Construction & Retrofitting SPD and Energy Efficiency & Renewable Energy in Historic Buildings SPD have been reviewed and combined in order to better align with, and help deliver, the core aims of this resolution by providing more positive, practical and up-to-date advice to improve the energy efficiency of B&NES’s building stock. The reviewed and combined draft ‘Energy Efficiency Retrofitting & Sustainable Construction SPD’ has been subject to statutory consultation under Regulation 12 (b) of the Town and Country Planning (Local Planning) (England) Regulations 2012. Following consideration of the issues raised in the consultation and some amendments to the SPD it is proposed to approve and adopt the final version.