Policy & Resources Cabinet Member – Minutes – 31 January 2014

107      (47) SETTING THE NON-DOMESTIC RATES TAX YIELD FOR 2014-15 – The Director of Policy and Resources submitted a report which sought consideration and approval of the North Lincolnshire National Non Domestic Rates (NNDR) Tax Yield for 2014-15.

An earlier report had been considered by Council on 10 December 2013.  A tax yield could not be finalised at that time because of changes made to the business rate multiplier and various reliefs as part of the Chancellor’s autumn statement.  The matter was referred to Cabinet for consideration.

Cabinet were unable to make a final decision as the final version of the form had not been issued, the matter was subsequently delegated to the Director of Policy and Resources, in conjunction with the Cabinet Member Policy and Resources for a decision.

The report outlined that under arrangements introduced from 1 April 2013 the total business rate for England was shared 50/50 between central and local shares. The local share was then allocated to individual councils in proportion to the amount of business rates they collected in 2010/11 and 2011/12 and increased by inflation each year. The government used the central share to fund any grants it made to local government.

Each year the Council was required to estimate the amount of NNDR it believed it would collect in the following financial year and make a return, the NNDR 1, to Government.  This was the purpose of this report.

Full details for consideration were outlined within the report.

The net NNDR tax yield for 2014-15 was estimated to be £81.792m.  It was explained that the council would be able to adjust its estimate through the NNDR1 return mid-year; and substitute the actual in the NNDR 3 return after the period had closed; but for budgeting purposes this was the tax yield to be used for 2014/15.

As with Council Tax, any surplus or deficit on the Business Rates element of the collection fund was applied to the budget in the following year.

An urgent decision was required because the NNDR Tax Yield must be reported back to the Department for Communities and Local Government on the NNDR 1 form by 31 January 2014.  The final version of this form was only released on the DCLG website on 28 January 2014.

Resolved – (a) That Council set a net NNDR tax yield for 2014-15 of £81.792m, and (b) that the Secretary of State and Humberside Fire Authority be duly notified.