Item 5 - Business Rates Devolution for London (L7/6)

Summary 

Leaders Committee in December 2015 agreed a set of overarching ambitions for the potential devolution of business rates to London, and established a small working group to oversee the development of proposals. Since then further details of the Government’s thinking have emerged, including the commitment set out in the March 2016 Budget to “explore with London options for moving to 100% business rates retention ahead of the full roll out of the business rates reforms.” Government intends to consult formally on the approach to business rate devolution in July 2016.

This report sets out the latest position and seeks Leaders’ endorsement of a ‘statement of principles’ for the design and management of devolved business rates in London, as the basis for a potential joint submission with the Mayor of London to Government before the end of June.

Recommendations 

Leaders are asked consider the report and to:

(1) amend and endorse as appropriate the ‘statement of principles’ for business rate devolution in London, as set out in Appendix 2
(2) seek agreement with the Mayor of London to submit the statement of principles jointly by the end of June, and to delegate final approval of any significant amendments required elected officers via the urgency procedure
(3) note that there will be ongoing discussions to explore with Government the early introduction of elements of business rate devolution in a London ‘pilot’.

 

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