Purpose

This
report covers new business rate relief that the Government has
announced for ten years, covering the period 1 April 2024 to 31
March 2034.
The
Film Studio Relief Scheme will provide eligible film studios with a
40% reduction on their gross business rates during the ten-year
period. This reduction is inclusive of any transitional relief
which may apply.
As
there are a number of national business rates revaluations
scheduled to occur during the span of this relief, the Government
may change the relief percentage in the future to keep a similar
level of benefit for these studios.
As the
scheme is designed for a limited period only, the Government is not
making changes to legislation, but instead providing detailed
guidance, and asking local authorities to use powers under s47 of
the Local Government Finance Act 1988 to set up the scheme.
Government will then fully repay the cost of relief awarded in line
with their guidance.
The government only released
the guidance to this policy on the 20th February, hence
the need for an urgent portfolio holder decision to ensure that
this policy can be implemented as part of the 2025/26 business
rates billing process.

Decision

Decision made and reasons:
 
This
decision adopts the following discretionary business rate relief
scheme.
Film
Studio Relief Scheme
This is
a scheme to cover the period 1 April 2024 to 31 March 2034, for
eligible film studios.
Eligibility for the relief will be determined by the Valuation
Office Agency (VOA), which is the body responsible for valuing
properties for business rate purposes. The VOA will notify the
Council of any properties to which the scheme will
apply.
There
are currently two studios within the borough that we expect to be
told will qualify for the relief. They are types of facilities
which saw exceptionally large increases at the 2023
revaluation.
The
scheme works by fixing a maximum level of business rates which can
be charged for any particular day, of 60% of the gross rates
calculated based on the rateable value. If the account is also
subject to transitional relief following a revaluation, then the
level of film studio relief is adjusted to reflect this.
For
example, if transitional relief is awarded which is equivalent to
10% of the gross rates, then film studio relief would be awarded
for 30%, bringing the total bill to 60% of the gross
rates.
If
transitional relief is equivalent to 40% or more of the gross
rates, then no film studio relief will be awarded.
The
detailed guidance for this scheme is published on GOV.UK

Business rates: Film studio relief - local authority
guidance - GOV.UK, and the scheme adopted
by Dacorum Borough Council will follow this guidance, including any
future amendments.
For the
avoidance of doubt, that means that this scheme allows for the
recalculation of any relief amount awarded, including in prior
years, where there is any change to the rateable value of the film
studio to which the relief has been awarded. The scheme also
provides for calculations known as ‘clawback’, which
come into operation if there is a change in rateable value from the
level that existed when the scheme was designed.
Film
Studio Relief is a scheme which is classed as a subsidy under the
Subsidy Control Act 2022. This does not impose any cap of the value
of relief which can be awarded, but does mean that each individual
relief of more than £100,000 is subject to transparency
requirements. Such awards will be added to the national subsidy
control database on the Manage UK Subsidies Portal.
Our
current estimate is that relief for 2024/25 will be approximately
£200k, and for 2025/26 it will increase to circa £1m.
This expected increase is due to a reduction in transitional relief
on the affected accounts.
Authority to make decisions of this type has been delegated to
the Portfolio Holder (Corporate and Commercial) by cabinet decision
CA/78/17.