Agenda item

1.1            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’s Cabinet. Any discount scheme needs Cabinet approval.  The qualifying criteria is set out in Appendix 1 to this report. 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’s Cabinet. Any discount scheme needs Cabinet approval.  The qualifying criteria is set out in Appendix 1 to this report.

(i)         that the discretionary discount scheme for businesses accredited to the London Living Wage Foundation be continued to 31 March 2019 on the basis that the Business Rates discount will continue to be five times the cost of accreditation and will be awarded to businesses in Brent which become accredited with the Living Wage Foundation and who meet the criteria detailed in Appendix 1 to the report from the Strategic Director, Resources;

(ii)        that it be noted that the approval and continuation of this scheme are 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;

(iii)       that it be noted that officers in Employment, Skills and Enterprise and Customer Services monitor the scheme in terms of take up and costs and would report back to Cabinet at a later date should any changes to the scheme be required;

(iv)       that applications for such discounts in National Non-Domestic Rates that meet the criteria as set out in Appendix 1 be considered and approved jointly by the Head of Employment, Skills and Enterprise and the Operational Director Customer Services.

Councillor Mashari, Cabinet Member for Regeneration, Growth, Employment and Skills introduced the report stating that Cabinet had agreed, at its meeting on 26 January 2015, to award a Business Rates discount to companies who agreed to pay its employees the London Living Wage and who became accredited with the Living Wage Foundation.

She reminded members that the level of discount was five times the costs of accreditation, 30% of the cost of the discount was borne by the council. The discount was restricted to the first 100 companies who became accredited. However it was agreed to review the scheme in 2016 in order to assess its effectiveness and whether it should be further extended.

Councillor Mashari stated that to date, there were now 16 accredited Brent businesses in the borough including the Council as well as 7 other national employers with branches in the borough. Of the 16 accredited businesses 15 meet the criteria for entitlement and have claimed or are in the process of claiming their business rates discount. As well as this, the Living Wage Foundation and Brent’s Employment, Skills and Enterprise team remain in ongoing discussions with a number of Brent businesses about accreditation so it was expected that some of these businesses would shortly gain accreditation.

Councillor Mashari stated that getting businesses to agree to commit to pay the London Living Wage and gaining accreditation was a long term process, it was therefore recommended that the scheme be extended to 31 March 2019 so that those companies already in discussion could qualify as well as providing further time for encouraging other businesses to become accredited.

The council had 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’s Cabinet. Any discount scheme needs Cabinet approval. The qualifying criteria was set out in Appendix 1 to the report.

RESOLVED:

(i)         that the discretionary discount scheme for businesses accredited to the London Living Wage Foundation be continued to 31 March 2019 on the basis that the Business Rates discount would continue to be five times the cost of accreditation and would be awarded to businesses in Brent which become accredited with the Living Wage Foundation and who met the criteria detailed in Appendix 1 to the report from the Strategic Director, Resources;

(ii)        that it be noted that the approval and continuation of the scheme were pursuant to the Council’s powers under section 47 of the Local Government Finance Act 1988 and that the Cabinet was 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;

(iii)       that it be noted that officers in Employment, Skills and Enterprise and Customer Services monitor the scheme in terms of take up and costs and would report back to Cabinet at a later date should any changes to the scheme be required;

(iv)       that applications for such discounts in National Non-Domestic Rates that meet the criteria as set out in Appendix 1 be considered and approved jointly by the Head of Employment, Skills and Enterprise and the Operational Director Customer Services.