Issue - meetings
London Business Rates Pilot Pool 2018-19
Meeting: 11/09/2017 - Cabinet (Item 11)
11 London Business Rates Pilot Pool 2018-19 
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This report provides an update following the July Finance Review reported to Cabinet on 24 July on the proposal for an expanded London business rates retention pilot via a pan-London pool in 2018/19. A draft prospectus from London Councils is enclosed in Appendix A and sets out how it is envisaged that a pilot pool could operate in 2018/19, should the government renew its commitment to this approach.
Additional documents:
Decision:
RESOLVED that:
11.1 The report and the draft prospectus from London Councils enclosed in Appendix A of the report, be noted;
11.2 The two founding principles of the London Pool where no authority can be worse off than they would otherwise be under the current scheme and that all London boroughs will share some of the financial gain arising from the pilot pool, be noted; and
11.3 The Chief Finance Officer, in consultation with the Leader of the Council, be delegated authority to indicate an ‘in principle’ decision to participate in a pilot business rates pool in 2018/19 and to enter into negotiations in respect of the legal, governance and administrative framework, the sharing of any financial benefits other details in respect of the operation of the pool.
Minutes:
Councillor Margaret McLennan, Deputy Leader, introduced the report which aimed to provide an update following the July Finance Review reported to Cabinet on 24 July on the proposal for an expanded London business rates retention pilot via a pan-London pool in 2018/19. Councillor McLennan stated that a draft prospectus from London Councils is enclosed in Appendix A and sets out how it is envisaged that a pilot pool could operate in 2018/19, should the government renew its commitment to this approach.
Councillor McLennan informed Cabinet that the report sets out the founding principles of a potential pool, options for allocating the financial benefits and the proposed governance and administrative arrangements for operating a potential pool.
She stated that the net one-off financial gain in 2018/19 from participating in the pool has been estimated at £229m for all London Boroughs and Greater London Authority. On current estimates the choice of distribution would give Brent a one-off financial benefit of between £4m and £4.8m.
RESOLVED that:
11.1 The report and the draft prospectus from London Councils enclosed in Appendix A of the report, be noted;
11.2 The two founding principles of the London Pool where no authority can be worse off than they would otherwise be under the current scheme and that all London boroughs will share some of the financial gain arising from the pilot pool, be noted; and
11.3 The Chief Finance Officer, in consultation with the Leader of the Council, be delegated authority to indicate an ‘in principle’ decision to participate in a pilot business rates pool in 2018/19 and to enter into negotiations in respect of the legal, governance and administrative framework, the sharing of any financial benefits other details in respect of the operation of the pool.