Issue - meetings

The Chief Accountant submitted a report seeking approval for the National Non-Domestic Rates (NNDR) estimates and NNDR1 Return for 2021/22.

The Local Government Finance Act introduced the part-retention of income from Business Rates from April 2013. The income generated is to be shared between the Government (50%), the County Council (9%), the Fire Authority (1%) and the Borough Council (40%). The Council will then have to pay a tariff of £11,465,704 from its share of the income to the Government.

The Council was required to complete and approve the NNDR1 Return, showing how the estimated income had been calculated and how it was to be shared.

It was noted that, in response to the Covid19 pandemic, the Government had extended the business rate relief scheme. The extension was not announced until March 2020 and was therefore not included in the NNDR1 form for 20/21 and was not taken into account as part of the authority’s council tax setting decisions thereby creating a shortfall in business rate income. As a result, MHCLG provided additional Section 31 grants to fully reimburse billing authorities for the lost income. This grant will be carried forward into 2021/22 to offset the resulting deficit. It will therefore have no impact on the General Fund position for 2021/22.

*RESOLVED –

1. That the estimated National Non Domestic Rates estimates as recorded on the NNDR1 Return (Appendix A to the officer’s report) be approved.

2. That the Acting Chief Finance Officer be given delegated authority to make any subsequent changes to the NNDR1 return that are identified before the final submission date of the 31 January, 2021.

REASON FOR DECISIONS

To fulfil the statutory requirements to approve the estimated Business Rates income. The information is required by the Government, by the Council and the other precepting authorities to enable them to set their Council Taxes.