Item 6 - The future of the London Business Rates Retention Pilot Pool (E09/19)

Summary 
 
London authorities and the GLA have successfully negotiated business rates retention pilots for 2018-19 and 2019-20, generating an estimated aggregate financial benefit of £568 million to invest in future economic growth and support vital local services.
Planned reforms of the business rate retention system are now highly unlikely to be implemented in April 2020, and an early decision by both Government and London local government will be required if the pilot pool is to be extended for a further year, or a non-pilot pool is to be established.
This report outlines the options available and seeks the Executive’s support in pursuing formal negotiations with Government, together with a steer on the report to be presented to Leaders’ Committee on 8th October. 

 

Recommendations 

The Executive is asked to consider the contents of the report and:

a) agree the proposal to submit a letter to Government formally seeking the extension of the pilot pool to 2020-21, subject to subsequent endorsement by Leaders’ Committee on 8th October;
b) comment on the desirability of pursuing a London pool in the absence of a pilot agreement, providing a steer for the report to Leaders’ Committee.