Content

14.1

The Executive Director City Futures submitted
a report seeking approval to secure Business Rate Retention (BRR)
status for a c150ha area of land running from the City Centre to
Meadowhall containing a number of sites
that have the potential to increase the business rate take above
the existing level (the Baseline), as outlined in this report.

 

 

14.2

RESOLVED UNANIMOUSLY: That
Strategy and Resources Policy Committee:-

 

 

 

(a) approves the Council securing Business
Rates Retention status in relation to the South Yorkshire
Investment Zone (IZ), as set out in this report, noting the final
details of the Business Rate Retention Area are to be agreed with
the Director of Finance and Commercial Services in consultation
with the Chief Executive and Leader of the Council, and subject to
officers agreeing the pooling of any business rate growth in
accordance with the below delegation; and
 
(b) delegates authority to the Director of
Finance and Commercial Services in consultation with the Chief
Executive and Leader of the Council to agree the pooling of any
business rate growth.
 

14.3

Reasons for
Decision

 

 

14.3.1

The underlying benefit that this proposal
brings is the potential to secure long term additional funding to
deliver a programme of economic activity in Sheffield and South
Yorkshire that will grow the economy for the benefit of residents
and business.

 

 

14.3.2

Both capital and revenue investments will be
made over the 25-year period once positive business rate returns
are achieved over the Baseline.

 

 

14.3.3

Investments will be made that:
• Provide for local economic growth
within Sheffield and the region.
• Support existing local strategies with
a focus on growth.
• Support the priority sector (Advanced
Manufacturing) within the Investment Zone.

 

 

14.3.4

Whilst the principles of the BRR scheme have
been provided by Government there remain points of detail to agree
with Government and SYMCA in their role as Accountable Body for the
IZ. This includes finalising the precise layout of IZ boundary, the
agreeing the methodology to calculate the Baseline, the content of
the BRR Investment Strategy and any requirements for pooling growth
at a South Yorkshire level. These points of detail are to be
delegated to the Director of Finance and Commercial Services in
consultation with the Chief Executive and Leader of the
Council.

 

 

14.4

Alternatives
Considered and Rejected

 

 

14.4.1

A do-nothing option would leave the Council no
worse off in that it would continue to secure any business rate
growth above existing levels within the identified area but at the
current rate of 49%. This income would become part of the General
Fund and can be used without any restriction imposed through the IZ
BRR scheme. However, the IZ BRR enables 100% retention of the
business rate growth and the areas of spend considered acceptable
within the scheme provide considerable flexibility to support
projects and activity that the Council would likely fund without
having IZ BR status.

 

 

14.4.2

Consideration has been given to including a
wider area within the IZ BRR however expansion is not likely to
capture any additional growth areas other than those which will
likely include significant residential development. Consequently,
the growth of such areas will be limited and may indeed see a net
reduction in business rate income which will negatively impact on
the overall position in relation to the BRR Baseline.