Item 6 - London Business Rates Pilot Pool (L10/17)

Summary    

This report updates Leaders’ Committee on progress towards a London Business Rates Pilot Pool since July, when the Committee last considered this issue.

It sets out the latest information on the government’s position, and emerging proposals for a pilot pool, including the distribution of any financial benefits that arise. It seeks both the Committee’s in-principle support for proceeding with an application to become a pilot pool and a steer on key elements of the pool’s operation and governance. Finally, it informs Leaders of the nature and timetable for decisions that each local authority would be required to take to give effect to the proposals.

Recommendations    

Leaders’ Committee is asked consider the report and, noting that any arrangements will be subject to the individual approval of all the London local authorities, to:

(1)    Support in principle an application to government for a London-wide business rate pilot pool for 2018/19, based on the features set out in paragraph 8 of Appendix B (and subject to the receipt of satisfactory assurances regarding “new burdens” and the “fair funding review” as identified in paragraph 10 of Appendix B).
Should recommendation (1) be agreed, Leaders’ Committee is further asked to:

(2)    agree to delegate to the Chief Executive in consultation with Elected Officers of Leaders’ Committee  in accordance with urgency procedures, the negotiation of the detail of final proposals to be then put to individual authorities and the Mayor of London for agreement (see paragraph 9);
(3)    express a preference between the four options for distributing the financial benefits of a pool outlined in Appendix B, Section D; and/or to provide a steer on the relative weighting between the elements of a final distribution option to be devised;
(4)    indicate whether it is content in principle – and subject to further legal advice – to develop proposals by which the authorities would delegate to a new joint committee of Leaders and the Mayor the exercise of functions in respect of deciding the allocation of strategic investment resources to specific projects in accordance with the principles and voting arrangements to be contained within the agreed framework for operating the pool (see paragraph 15)