Item 4 - Business Rates Retention Pilot: Strategic Investment Pot Outcome (L9/18)

Summary    

This report informs the Leaders’ Committee and the Mayor of London of the outcome of the Strategic Investment Pot (SIP) decision-making process, part of the London Business Rates Retention Pilot Pool. 

From April 2018 London’s boroughs, the City of London and the GLA agreed with Government to establish a 100% business rate retention pilot pool. Of the estimated net financial benefit, 15% (£52m) is set aside for a Strategic Investment Pot (SIP).  

22 bids for SIP funding were received from 15 accountable boroughs for a total of £123.4m, with all authorities represented. London Councils and the Lead Authority (City of London Corporation) convened a Panel of Chief Officers from across London to evaluate the bids, and a recommendation was made to award funding to eight bids, totalling £46.83m. The Lead Authority consulted on the recommendation over the summer, achieving the broad support required to allocate funds. The report details this outcome and the funding decision. 

The report also includes the next steps for the SIP, which include the provision of feedback to bidders, the financial administration arrangements, preparations for a future bidding round, and the lessons to be learnt from this first pilot year.