Agenda, decisions and minutes

There were no apologies for absence.

To provide an opportunity for Members and Officers to declare any disclosable pecuniary and non-pecuniary interests in any item on the agenda.

There were no declarations of interest.

In accordance with Procedure Rules Nos.11 and 35 a period of 10 minutes is allocated for members of the public to address the meeting on any matter relevant to the work of the body in question.  Individual members of the public may speak for up to 5 minutes but the Chairman or person presiding will decide how the period of time allocated for public speaking will be apportioned where there are a number of speakers. Members of the public are not required to give notice to use this facility. However, as a matter of courtesy, a period of 24 hours’ notice is encouraged.

Members of the public wishing to ask a question at the meeting should provide at least three clear working days’ notice in writing and should include the question with that notice. This will enable an informed answer to be given.

No members of the public were present.

To determine whether the Council should continue to be part of a business rates pooling arrangement under the Business Rates Retention Scheme with the local authorities in Greater Manchester and Cheshire West and Chester Council

That the Cabinet Member for Finance and Assets, in consultation with the Chief Operating Officer:

1.    Endorses the application for Cheshire East Council to form a business rates pool with the ten Greater Manchester authorities and Cheshire West and Chester Council from 1 April 2016; and

2.    Agrees that Manchester Council continues to act as the lead authority for the pool.

Consideration was given to the Council continuing to be part of a business rates pooling arrangement under the Business Rates Retention Scheme with the local authorities in Greater Manchester and Chester West and Chester Council.

As part of the Scheme authorities come together, on a voluntary basis, to pool their business rates. This gives them scope to generate additional growth through collaborative effort and to smooth the impact of volatility in rates income across a wider economic area. It also ensures that members of the pool are treated as if they were a single entity for the purposes of calculating levy and safety net payments under the scheme.

Each authority must decide whether such pooling is appropriate for them and the consequences of forming a pool are different in each case and each therefore needs to undertake their own due diligence, modelling their individual position alongside the pool position. This had been undertaken.  The situation for the proposed pool suggested that the levy rate would be reduced to zero therefore benefitting the pool as a whole. By comparison, Cheshire East Council’s levy rate would be 43p in the pound paid over to central government.

On the basis of the current position of each of the twelve authorities, there was a realistic prospect of Trafford, Stockport, Cheshire East and Cheshire West and Chester generating sufficient business rates growth which would otherwise lead to levies being paid to DCLG should the business rates pool not exist.  An application had been submitted on behalf of the Greater Manchester Council’s, Cheshire East, and Cheshire West and Chester to the Department of Communities and Local Government on the pooling of business rates.  The pool would become operational from 1 April 2016 unless the Council or another member opted out.

RESOLVED

1.    That the application for Cheshire East Council to form a business rates pool with the ten Greater Manchester authorities and Cheshire West and Chester Council from 1 April 2016 be endorsed.

2.    That agreement be given for Manchester Council to continue to act as the lead authority for the pool.