Issue - meetings

The Council has the discretion to award discounts in national non-domestic rates to businesses under section 47 of the Local Government Finance 1988.  To award discounts under this provision a business must meet criteria set by the council. Any discount scheme needs Cabinet approval.  It is therefore proposed to agree and implement a scheme whereby any business that becomes accredited with the Living Wage Foundation can apply a discount in respect of their Business Rates, though this will be limited to the first 100 businesses in Brent which become accredited with the Living Wage Foundation and which meet the criteria set out in Appendix 1 to this report.

(i)         that approval be given to the proposal to offer a discount in National Non- Domestic Rates of five times the costs of accreditation to the first 100 businesses in Brent which become accredited with the Living Wage Foundation and who meet the criteria detailed in Appendix 1, pursuant to the Council’s powers under section 47 of the Local Government Finance Act 1988 and that the Cabinet is satisfied that that this proposal is reasonable having regard to the interests of those persons who are liable to pay council tax in the borough of Brent;

(ii)        that the scheme be implemented from 1 April 2015 and run to 31 March 2016 in order to monitor take up and the cost incurred by the council in funding the scheme. A report will be submitted in January 2016 detailing the success of the scheme thus far and whether or not it should be extended into 2016/17.

(iii)       that applications for such discounts in National Non-Domestic Rates that meet the criteria as set out in Appendix 1 be approved jointly by the Head of Employment and Skills and Head of Customer Service and Revenue.

Councillor Mashari (Lead Member, Employment and Skills) introduced the report from the Strategic Director, Regeneration and Growth which set out proposals for an incentive scheme designed to support those businesses who were considering paying the London Living Wage (LLW) by offering a discount to any business who becomes accredited with the Living Wage Foundation.  Councillor Mashari reminded the Cabinet that the majority of people in poverty were in work particularly in retail, hospitals and the private sector. The Cabinet noted that approximately 30% of Brent residents were paid less than the London Living Wage in comparison to a London average of 20%. Councillor Mashari advised that the council was trying to incentivise and encourage employers through the discretionary rate discount. She advised that negotiations were taking place with the local businesses and partners for the package to be put in place by April 2015 to coincide with the proposed discount coming into effect. Councillor Mashari was pleased to report that Brent Council was the first authority in the country to offer business rates discounts as an incentive to pay the 'living wage' to help living standards for low paid workers.

Members of the Cabinet welcomed the initiative and Councillor Mashari advised that the success of the initiative could be measured by the number of employers that signed up. Approximately 30 had expressed interest and further information would be included with business rates correspondence. Work was also taking place with the trade unions.

RESOLVED:

(i)         that approval be given to the proposal to offer a discount in National Non- Domestic Rates of five times the costs of accreditation to the first 100 businesses in Brent which become accredited with the Living Wage Foundation and who meet the criteria detailed in Appendix 1 of the report from the Strategic Director, Regeneration and Growth, pursuant to the Council’s powers under section 47 of the Local Government Finance Act 1988 and that the Cabinet is satisfied that that this proposal is reasonable having regard to the interests of those persons who are liable to pay council tax in the borough of Brent;

(ii)        that the scheme be implemented from 1 April 2015 and run to 31 March 2016 in order to monitor take up and the cost incurred by the council in funding the scheme. A report would be submitted in January 2016 detailing the success of the scheme thus far and whether or not it should be extended into 2016/17;

(iii)       that applications for such discounts in National Non-Domestic Rates that meet the criteria as set out in Appendix 1 be approved jointly by the Head of Employment and Skills and Head of Customer Service and Revenue.