The Strategic Director Finance and Governance and Executive Director, Economic Development and Communities submitted a report which sought to support a number of, mainly smaller local business, least able to absorb the full impact of increases under the Governments Business Rate 2017 revaluation, by the distribution of Government grant.
The report outlined that the Government had undertaken a national revaluation of all commercial premises in England and Wales. From 1st April 2017, all premises in Middlesbrough would be assigned a reviewed rateable value by the Valuation Office, used to calculate the level of business rates charged to their occupier. The last time there was a revaluation was in 2010. The 2017 revaluation had resulted in the business rate bills of some premises in Middlesbrough increasing significantly, although there was an overall reduction in the rateable value in the 4,300 business premises in Middlesbrough from £110.9 million to £103.7 million (-6.5%). There were 129 properties which had seen an increase of more than 12.5% with a rateable value of less than £200,000, which was the Governments criteria for distributing the grant nationally.
The report provided information on the following, further details of which were outlined in the report:
1) Discretionary business rates relief scheme;
2) Supporting Small Business Scheme
3) Pubs Relief Scheme
The grant condition required the Council to consult with the Tees Valley Combined Authority. The proposed scheme had been presented to them and they have given their support to the proposal.
That the Executive agree to support and implement Option 2 for distributing the Government grant to support business in the town most affected by the increase in rateable values as set out in the report.
The decision was supported by the following reason:
The Council has been allocated a Government grant to support businesses which have seen their business rates bills increase as a result of the 2017 revaluation. The Council must design and consult on its own scheme for distributing the grant.