News round-up: Business rates redistribution and appeals, council spending and EU funding
0Replacement for ‘top-ups’ and ‘tariffs’ mooted
The government has outlined options for new arrangements to redistribute business rates income between richer and poorer authorities. In a consultation on the proposed devolution of 100% of non-domestic rates, the government is seeking views on a range of time periods for a full reset of the system – between five and 20 years – or frequent partial resetting. Cllr Nick Forbes, senior vice chairman of the Local Government Association, said: “It is important for the new system to be implemented in a way which balances rewarding councils for growing their local economies but avoids areas less able to generate business rates income suffering as a result.”
Business rates appeals to be “streamlined”
A new “streamlined” approach to business rates appeals has been proposed by the government which allow businesses to skip an early stage of the process. A statement from the Department for Communities and Local Government says businesses will be permitted to bypass the first stage of the current three-stage process under certain conditions.
The government is also proposing to restrict the ability of businesses to provide new information late in the appeals process. Appeal charges will also only be applied toward the end of an appeal in a move to encourage early disclosure of information. Another measure will see businesses provided with online accounts where they can update their own information for the Valuation Office Agency.
The statement follows a consultation that closed in January this year and attracted more than 200 responses. The statement said: “The overwhelming majority of respondents recognised the need for change. They also agreed the objectives of the reforms should be to put in place a swift, structured and transparent system, which promotes early engagement by all parties to resolve cases quickly.” Draft regulation on the system is expected for consultation in the summer while the government plans to have new measures in time for the new rating list due on 1 April next year.
Council spending set to drop
Councils’ spending will fall by 1% (0.9bn) in 2016-17, according to figures released by the Department for Communities and the Chartered Institute of Public Finance and Accountancy. Council reserves will stand at a total of £21bn, down 1.5% on the year before, with £17.3bn of these reserves earmarked for specific purposes. This includes a £2.3bn provision for schools, £174m for public health and £14.9bn for other areas of future local public spending.
Councils seek assurances on EU funding
The Local Government Association is seeking assurances from government that councils will still receive £5.3bn earmarked for regeneration funding through the European Union up to 2020. In the wake of the vote to leave, the LGA also said that councils must have a seat at the table in negotiating the UK’s exit from the European Union.
LGA chairman Lord Porter said :”Now that the British people have voted to part company with the EU, it is vital that we avoid powers or funding which affect local government getting swallowed up in Whitehall. Over the last year, more powers and funding have been given to local areas. The referendum result and the political uncertainty that has followed must not see that process stall or go backwards.”
Haringey announces joint venture shortlist
London Borough of Haringey has announced the shortlist for a private sector partner to develop 5,000 new homes and a new town centre for Wood Green. The three shortlisted bidders are Lendlease, Morgan Sindall with Affinity Sutton, and Circle Pinnacle with Starwood Capital and Catalyst. The ‘Haringey Development Vehicle’ will be a 50/50 long-term joint venture.
