Council and Democracy

Agenda item

Markham Vale Enterprise Zone - Business Rates

Decision:

* RESOLVED –

 

That Cabinet recommends to full Council that:

 

(1)  The Business Rates income from the Markham Vale Enterprise Zone (MVEZ) be retained by the Council from 1 April, 2020 and re-invested locally to support the delivery of local economic priorities.

 

(2)  The change in Business Rates policy for MVEZ be applied annually for the remaining 17 years of allowable business rates retention up to 2036/37.

 

(3)  Approval be given to the proposal for three key programmes of investment: key projects delivery, economic growth activities and skills activities; and that the funding be particularly targeted at unlocking and accelerating key developments and sites and delivering better outcomes for local communities.

 

(4)  Detailed programmes of investment be developed, with a particular emphasis on the key growth projects being progressed through the Joint Growth Board, with Derbyshire County Council; and recommendations be made to Cabinet and Council as appropriate to ensure the programmes and associated spending are approved in line with the Council’s constitution.

 

REASONS FOR DECISIONS

 

1.     To revise the Council’s policy with regards to the retained business rates income from MVEZ, following the Council’s decision to discontinue its membership of the SCR LEP.

 

2.     To ensure that the retained business rates income is reinvested locally and used to support the delivery of local economic priorities in and around Chesterfield.

Minutes:

The Executive Director and the Assistant Director – Economic Growth submitted a report proposing that the Council’s policy in respect of business rates income from Markham Vale Enterprise Zone (MVEZ) be revised and that the retained business rates income be re-invested locally to support the delivery of local economic priorities in and around Chesterfield.

 

The Council had agreed in December, 2014 (Council Minute No. 62, 2014/15) for the retained business rates from MVEZ to be paid to the Sheffield City Region (SCR) Local Enterprise Partnership (LEP) subject to review in the event of there being a change to the Council’s membership of the SCR LEP. Following the Leader’s decision, noted by Council on 17 July, 2019 (Council Minute No. 20, 2019/20), for the Council to relinquish its membership of SCR LEP with effect from 1 April, 2020, it was now appropriate to review the Council’s policy relating to the retained business rates income from MVEZ.

 

Having regard to the Government’s original Enterprise Zone policy and advice received from the Government’s Cities and Local Growth Unit, it was proposed that the Council retained the business rates income associated with MVEZ from 1 April 2020, and that the income be exclusively targeted at projects, initiatives and activities that support the delivery of local economic priorities.

 

The report referred to the objectives set out in the Council’s Growth Strategy (2019 – 23) and to three key programme areas that had been identified as priorities for investment for the retained MVEZ business rates income – key projects delivery, economic growth activities and skills activities.

 

The report set out the financial, legal and risks associated with  the proposals and the alternative options considered. 

 

* RESOLVED –

 

That Cabinet recommends to full Council that:

 

(1)  The Business Rates income from the Markham Vale Enterprise Zone (MVEZ) be retained by the Council from 1 April, 2020 and re-invested locally to support the delivery of local economic priorities.

 

(2)  The change in Business Rates policy for MVEZ be applied annually for the remaining 17 years of allowable business rates retention up to 2036/37.

 

(3)  Approval be given to the proposal for three key programmes of investment: key projects delivery, economic growth activities and skills activities; and that the funding be particularly targeted at unlocking and accelerating key developments and sites and delivering better outcomes for local communities.

 

(4)  Detailed programmes of investment be developed, with a particular emphasis on the key growth projects being progressed through the Joint Growth Board, with Derbyshire County Council; and recommendations be made to Cabinet and Council as appropriate to ensure the programmes and associated spending are approved in line with the Council’s constitution.

 

REASONS FOR DECISIONS

 

1.     To revise the Council’s policy with regards to the retained business rates income from MVEZ, following the Council’s decision to discontinue its membership of the SCR LEP.

 

2.     To ensure that the retained business rates income is reinvested locally and used to support the delivery of local economic priorities in and around Chesterfield.

Supporting documents: