Issue - meetings

Portfolio Holder – Councillor Martin Cook

In September 2024, the savings programme identified in the Budget Delivery Plan report was approved. This report details the changes that need to be made to the Discretionary Business Rate Relief Policy to deliver the expected saving of £47,000 per year through a reduction in discretionary rate relief awards to applicable organisations. 

The Council has discretionary relief powers (under section 47 of the Local Government Finance Act 1988 as amended) to update its policy on Discretionary Business Rate Relief to realise the savings identified.

This report recommends that Executive approves an amended Discretionary Business Rate Relief policy and delegates authority to the Chief Executive in consultation with the Portfolio Holder and Leader to agree future changes to the Discretionary Business Rate Relief policies for the life of the 2023 Rating List.

105.1. Councillor M Cook introduced the report highlighting that under the Local Government Finance Act 1988 all local authorities were required to have a Discretionary Rate Relief Policy that provided for up to 100% relief for certain categories of businesses/organisations. One of the savings options identified in the Budget Delivery Plan adopted in September 2024 was to reduce the level of relief provided by £47k pa. Currently 68 organisations received business rates relief, with an average benefit of £691 pa. Paragraph 2.3 of the report set out how the proposed savings would be achieved as given the current volatility around business rates collection and recent write offs, it was no longer sustainable to offer the current level of relief. The Council’s policy had been more generous previously and the proposed changes brought it in line with the relief offered by other local authorities. The updated Discretionary Business Rate Relief Policy for 2025/26 was attached at Appendix 1 of the report and its adoption would enable annual billing to proceed on that basis.

105.2. Councillor Fisher commented that most of the relief was offered to voluntary sector organisations but noted that any business could apply and asked if this happened. Councillor Fisher asked how the policy criteria of ‘The Interest of Council Tax Payers’ was applied, i.e. how could it be demonstrated that offering say a 10% rate relief to a charity would represent good value to the taxpayer.

105.3. Councillor M Cook commented that most of the organisations that benefitted were voluntary organisations or national charities and it was rare for businesses to make an application. When an application was received, Officers would make an assessment against all of the criteria to ensure that any recommendation was in line with the Policy.

It was RESOLVED:

a)             That Executive approves the updated Discretionary Business Rate Relief Policy as set out in Appendix 1 of the report for the 2025/26 financial year.

Reason: To enable the realisation of savings whilst continuing to provide support to applicable organisations in Ipswich.

b)            That Executive delegates authority to the Chief Executive, in consultation with the Portfolio Holder for Resources and the Leader of the Council, to agree future changes to the Discretionary Business Rate Relief policies for the life of the 2023 Rating List.

Reason: To enable the policies to be maintained during the life of the rating list in order to provide support to ratepayers in Ipswich.