Decision details

COVID Additional Relief Fund (CARF) Policy

Decision Maker: Portfolio Holder for Finance

Decision status: Recommendations Approved

Is Key decision?: No

Is subject to call in?: Yes

Purpose:

To update the Portfolio Holder on the options for spending the discretionary fund allocations for Covid Additional Relief Fund (CARF) payment and to recommend the attached proposed policy.

 

Decision:

Resolved

 

(1)       That the proposed policy for the Covid Additional Relief Fund (CARF) (annexe 1) be approved.

 

(2)       That authority be delegated to the Assistant Director of Finance (S151) to agree the final percentage of the award and/or maximum Rateable Value threshold using the latest information for businesses eligible to receive the award and the reliefs they are entitled to in order to ensure use of the fund is maximised

 

Reasons for the decision:

Option 5 (Model 5 below) is the preferred approach.  Option 5 focuses the relief on businesses classed as “small and medium” and so focuses the resource on the smallest businesses which will have seen significant struggles.

 

It is recommended that due to movement in rateable values and businesses receiving other reliefs that delegated power to review the % of the award or maximum RV threshold is held by section 151 to ensure maximised spending of the fund.

 

Alternative options considered:

The following alternative options have been identified and models 1 to 4 were rejected for the reasons as set out below and model 5 is the recommended option to take forward.

 

Table 1: Example Models

 

 

Model 1

Model 2

Model 3

Model 4

Model 5

Criteria

35% of rates liability with £50K monetary cap & max RV cap of £100k

9% off all eligible accounts in 2021/22. No cap on RV or award

11% of rates liability. No cap on RV or award

Same as model 1 with RV cap of £50,999. All accounts in 2021/22 - 50% award

Same as model 4 with RV cap of £50,999. All accounts in 2021/22 - 56% award with 50K monetary cap

Total £ awarded

 £     3,622,707.15

 £     3,541,536.40

 £     3,685,739.52

 £     3,527,467.50

 £     3,950,763.60

Percentage of Cherwell’s funding allocation

90.8%

88.8%

92.4%

88.4%

99.1%

 

Model 1: Similar to Oxford City

Excludes all ATMs, Advertising boards, Energy Suppliers & Networking, Telecommunications mast, schools - independent and maintained, government and justice, betting and gambling, fire, police, solar panels, banks and liable on 1.4.2021 and still liable and must be occupying for more than 60 days. Maximum Rateable Value = £100,000

Model 2: Similar to West Oxon

Excludes car parks, schools and colleges and army barracks then standard percentage across the board.  All businesses, no cap on amount of award. This includes open and closed accounts. Caveat: will have to check Companies House pre-award

Model 3:

Excludes all ATMs, Advertising boards, Energy Suppliers & Networking, Telecommunications mast, schools - independent and maintained, government and justice, betting and gambling, fire, police, solar panels, banks and liable on 1.4.2021 and still liable and must be occupying for more than 60 days. No Max RV or cap on award

Model 4:

Excludes all ATMs, Advertising boards, Energy Suppliers & Networking, Telecommunications mast, schools - independent and maintained, government and justice, betting and gambling, fire, police, solar panels, banks and liable during 2021/22 and must be occupying for more than 60 days. Maximum Rateable Value = £50,999

Model 5:

Excludes all ATMs, Advertising boards, Energy Suppliers & Networking, Telecommunications mast, schools - independent and maintained, government and justice, betting and gambling, fire, police, solar panels, banks and liable during 2021/22 and must be occupying for more than 60 days. Maximum Rateable Value = £50,999

 

 

By awarding relief to businesses in properties with a rateable value of £51,000 or higher risks the relief being rejected due to the business exceeding subsidy levels. 

 

Awarding a lower value percentage to all businesses will adversely impact those businesses determined as most in need.

 

By capping the rateable value at £50,999 this would assist small and medium businesses within Cherwell.  Option 4 would leave a discretionary fund available, however if insufficient applications received then the funds would be returned to central government.

Interests and Nature of Interests Declared:

None.

Corporate Priorities : An enterprising economy with strong and vibrant local centres;

Wards Affected: (All Wards);

Reason No Public Access: No

Contact: Jacey Scott, Head of Revenues and Benefits Email: jacey.scott@cherwell-dc.gov.uk Tel: 01295 221548.

Publication date: 02/09/2022

Date of decision: 02/09/2022

Effective from: 08/09/2022

Accompanying Documents: