Issue - meetings

This report provides an analysis of the Local Government Finance Settlement, announced on 19 December 2012.  It also provides an update on the status of the Leeds City Region (LCR) pool.

RESOLVED:    That Cabinet:

i)         Note the provisional Local Government Finance Settlement figures;

ii)       Agree to the Leader, on the advice of the Director of Customer & Business Support Services, deciding on how to proceed with the council’s involvement in the LCR business rates pool.

iii)      Delegate approval of the annual NNDR1(National Non Domestic Rates) form to the Director of Customer & Business Support Services.

REASON:        i)           To inform financial planning decisions for the 2013/14 and 2014/15 budgets.

ii)          So that the council’s income from the business rates retention scheme is maximised.

iii)          So that process for Council Tax and business rates are aligned and so that the council can submit business rates figures to Central Government as and when requested.

Members received a report which provided an analysis of the Local Government Finance Settlement, announced on 19 December 2012, with the final settlement due at the end of January, and an update on the status of the Leeds City Region (LCR) pool.

Information on the key themes of the new funding system, following changes arising from the 2011 Localism Bill, were set out in detail at paragraph 3 of the report. With the main changes to the settlement for 2013/14 being:

·         A loss of £4m compared to the Formula Grant funding received in 2012/13.

·      As a tariff authority York would have to levy a rate of 49%, for every £1 of growth in the city, with only 25.5p retained locally.

·         The Revenue Support Grant allocation would reduce between £5m and £6m or a loss of 14-16%.

·         £20m of cost savings would need to be delivered over the next 2 years.

Following agreement to the Council’s participation in the designated Leeds City Region business rates pool the Department for Communities and Local Government had now approved the designated pool. Data relating to the pool was however still being released and Members were therefore asked to allow the Leader, with advice from the Director of CBSS, to make the final decision following receipt of all the information, with a report back to Committee in February.

The Cabinet Member reported on future funding difficulties and the additional cost pressures of Adult Social Care. The retention of business rates locally however would allow the potential of assisting financial growth.

RESOLVED:    That Cabinet:

i)         Note the provisional Local Government Finance Settlement figures;

ii)       Agree to the Leader, on the advice of the Director of Customer & Business Support Services, deciding on how to proceed with the council’s involvement in the LCR business rates pool. ^1.

iii)      Delegate approval of the annual NNDR1 (National Non Domestic Rates) form to the Director of Customer & Business Support Services.^2.

REASON:        i)           To inform financial planning decisions for the 2013/14 and 2014/15 budgets.

ii)          So that the council’s income from the business rates retention scheme is maximised.

iii)          So that process for Council Tax and business rates are aligned and so that the council can submit business rates figures to Central Government as and when requested.