Issue - meetings

Report of Assistant Director of Finance (Section 151 Officer)

Purpose of report

To update Budget Planning Committee (BPC) on the Business Rates Reset consultations; one of which took place in April and a follow up that was launched 20 June for responses in mid-August. These consultations relate directly to the Medium-Term Financial Strategy (MTFS) 2026/27 – 2030/31.

Recommendations

The Budget Planning Committee resolves:

1.1     To note the council’s response to the Business Rates Reset consultation which was open between 8 April and 2 June.

1.2     To note the Fair Funding 2.0 consultation that was launched on 20 June with a closing date of 15 August.

Resolved

(1)        That the Council’s response to the Business Rates Reset consultation which was open between 8 April and 2 June be noted.

(2)        That the Fair Funding 2.0 consultation that was launched on 20 June with a closing date of 15 August be noted.

The Assistant Director Finance (S151 Officer) submitted a report to update the Committee on the Business Rates Reset consultations; one of which took place in April and a follow up that was launched 20 June for responses in mid-August. These consultations related directly to the Medium-Term Financial Strategy (MTFS) 2026/27 – 2030/31.

In introducing the report, the Portfolio Holder for Finance, Property and Regeneration advised the Committee that the Government had launched a consultation earlier in the year on the technical aspects that officers had responded to, however a second consultation was launched on 20 June with a closing date of 15 August. Officers would be drafting a response and comments from the Committee were invited.

At the Committee’s request, the Assistant Director Finance explained, in layman’s terms, the proposed business rates reset. The Assistant Director Finance advised that currently the Council was able to retain a proportion of business rates revenue collected with the remaining percentage going to central government. The central share was redistributed to local government through grants.   Councils could keep the revenue generated from businesses in their area and the Cherwell district had good growth during the last 12 years. The Assistant Director Finance explained that the Government’s proposed business rates reset was a full reset which would mean that the distribution of the rates would change and it was expected the impact of the changes would reduce the council’s funding by 40%.

In answer to a question from a member of the Committee regarding the impact of the Business Rates Reset on the agreed Medium Term Financial Strategy (MTFS), the Assistant Director Finance advised that the approved MTFS made the broad assumption that there would be a full business rates reset and would be phased over three years which was the approach given by government in the consultation.

Resolved

(1)        That the Council’s response to the Business Rates Reset consultation which was open between 8 April and 2 June be noted.

(2)        That the Fair Funding 2.0 consultation that was launched on 20 June with a closing date of 15 August be noted.