Purpose

In emerging and expanding
business parks, such as Fradley Business Park, businesses often
expand and grow their units/floorspace in creative ways – for
example adding mezzanine floors – which are then not easily
captured on the Valuation Office Agency’s list, so business
rate charges may not be appropriately levied.
 
Whilst the revenues team does
its best to track and trace any new businesses in the area, it does
not have a mechanism for identifying new spaces within existing
rated units and does not have the capacity to actively pursue
businesses to determine whether such new rateable value exists
within the district.
 
The council is keen to work
with a company called Capacity Grid to carry out a pilot to
determine whether an active approach to identifying new rateable
value within the district could generate positive
results.
 
Long-term any new rateable
value added to the list would benefit the district council, which
retains a percentage of business rates it collects. It will also
benefit other precepting authorities including the county, police,
fire and parish councils. Any additional revenue can then be used
to fund local services.
 
Capacity Grid charge a
percentage fee for their work. The pilot will be limited to a
maximum spend of £75,000 with Capacity Grid. This spend will
be met by the additional business rates revenue
generated.
 
Approval is sought to progress
the pilot within this financial year (2023-24).

Decision

The Cabinet Member for Finance &
Commissioning approved a Business Rates Pilot on the basis that
this will maximise business rates revenue to the district council,
up to a maximum spend of £75,000.