Agenda item
Update on the Devolution of Business Rates Task Group
- Meeting of Resources and Public Realm Scrutiny Committee, Tuesday 5 September 2017 7.00 pm (Item 7.)
This report provides an update to the Resources and Public Realm Scrutiny Committee on progress of the recommendations made by the Devolution of Business Rates Task Group in November 2016.
Minutes:
Councillor Davidson (Chair, Devolution of Business Rates Task Group) advised that the Task Group had created a productive report which had been fully endorsed by Cabinet. It was highlighted that the Devolution of Business Rates had been delayed, however, the policy of encouraging business had not. Of the task group’s recommendations, there remained a number of powerful actions for Brent’s businesses. Councillor McLennan (Deputy Leader) further explained that in preparation for the anticipated devolution of business rates, London’s local authorities were considering pooling business rates to provide a level of financial stability across the region. For Brent, this would ensure an additional £4million in 2018/19 and a further £4.8million the following year. A report on this matter was due to be submitted to Cabinet. Althea Loderick (Strategic Director Resources) and Ravinder Jassar (Head of Finance) were also present to address member’s queries.
A member subsequently questioned how the council addressed attempts by business owners to avoid paying business rates by dividing businesses into separate parts. Further queries were raised regarding the increased use of Wembley Stadium, how this affected the Stadium’s Business Rates, the Stadium’s current rateable value and whether there were any discounts or relief applied. The committee questioned whether Planning Policy would change to reinforce a desired mix of residential and business use in developments. Considering the recommendations of the task group in detail, members emphasised the value of having a named lead member responsible for Business Rates and highlighted that more could be done to enhance local partnerships. Members further questioned whether the apprenticeship scheme could be extended to the Football Association (FA), the target for the number of residents in the scheme and why the scheme was most prevalent in the Wembley area. Queries were also raised regarding the role of Brent Business Boards in attracting business to the borough.
In response, Ravinder Jassar confirmed that there was no evidence to suggest that business owners were dividing their business to avoid paying business rates, though assured the committee that this issue would be examined. The increased use of Wembley Stadium did not affect the level of business rates payable as this was based on the rateable value of the property. Althea Loderick outlined the rateable value of Wembley Stadium. In April 2016, this had been £6,200,000 and had risen to £7,800,000. The original rateable value for the Stadium in 2010 had been £10,000,000 but this had been reduced in 2011. Althea Loderick advised that she would liaise with the Valuation Office to ascertain the reasons for this reduction. Councillor Tatler (Lead Member for Regeneration, Growth, Employment and Skills) advised that Brent’s Planning Policy currently emphasised mixed residential and business developments.
Councillors McLennan and Tatler confirmed that the practicalities of business rates fell within the portfolio of the former, whilst responsibility for business growth sat with the latter. A dedicated portfolio could be created if deemed necessary going forward. Matthew Dibben (Head of Employment, Skills and Enterprise) advised that a Brent Business Board was launched in November 2016 and brought the council together with voices from the business community. The Board aimed to change perceptions of Brent, its skill base and workforce now and in the future. In December 2017, the first year of the Business Board would be reviewed and next steps considered. It was certainly an aspiration to include the FA as an employer within the Apprenticeship Scheme. Target setting for the scheme was in its infancy at 50 residents for 2017. The scheme was borough wide and aimed to generate opportunities throughout the borough. Councillor McLennan highlighted the Council’s Apprenticeship Strategy for 2017-2018 which would meet the public sector requirement of 2.3 per cent of the workforce, equating to 500 apprenticeships across four years internally.
The Chair emphasised that this issue would continue to be scrutinised as part of the process of budget scrutiny.
RESOLVED:
i) that the report and update provided by Officers and Lead Members be noted;
ii) that the Strategic Director of Resources provide an update the committee on the outcome of her discussions with the Valuation Office regarding the reduction in the rateable value of Wembley Stadium in 2011.
Supporting documents:
- Scrutiny Covering Report - Devolution of Business Rates Task Group, item 7. PDF 54 KB
- Appendix 1 - Update on Task Group Recommendations, item 7. PDF 349 KB
- Appendix 2 - Devolution of Business Rates Task Group Final Report, item 7. PDF 625 KB