Purpose

Direction required on whether all existing policies to remain in place and to continue into the new Unitary for each area / unless otherwise directed.

Decision

RESOLVED

That     (i)     it be agreed in principle that discretionary council tax and business rates policies should be harmonised across the geographical area of West Surrey Council from Vesting Day;

            (ii)    the adoption of a single harmonised Section 13A(1)(c) discretionary policy for West Surrey Council be endorsed in principle, applying a consistent framework for hardship, exceptional circumstances, application requirements, evidence, decision-making, review and appeals, subject to further approval of such a policy;

            (iii)    the adoption of a single harmonised Section 47, discretionary business rates relief policy for West Surrey be endorsed in principle, covering charitable and not-for-profit relief, community and economic benefit, hardship relief, local discounts, government-funded schemes administered through Section 47 powers and subsidy control requirements, subject to further approval of such a policy;

            (iv)   further work be undertaken to refine and complete the proposed policies, including consideration of the outcomes of consultation, equality impact assessments and implementation;

            (v)    requests that harmonised Council Tax and Business Rate discretionary relief policies be brought back to the Shadow Executive on 16 December 2026 for recommendation to the Shadow Authority meeting on 14 January 2027 for formal adoption to be effective from Vesting Day; and

            (vi)   it be agreed that the harmonised policies should be reviewed within twelve months of implementation, and thereafter at least every three years, or sooner where legislative, financial or operational changes require review.

Reasons for decision:

The recommendations are made to ensure that West Surrey Council is able to operate from Vesting Day with clear, lawful and consistent discretionary taxation policies.  Harmonising the policies will reduce the risk of residents, businesses and voluntary organisations being treated differently because of historic district or borough boundaries and will provide a common basis for decision-making.

From an operational perspective, harmonisation is necessary to support safe transition.  Revenues and Benefits teams will need to administer billing, collection, recovery, discounts, exemptions, reductions and reliefs from day one.  Multiple inherited policies would complicate system configuration, staff training, customer communications, quality assurance and financial monitoring.  A harmonised approach will enable a single set of application forms, evidence standards, decision templates, delegated authority levels, review arrangements and management information reports for each new authority.

A harmonised approach is recommended under section 13a of the Local Government Finance Act 1992 and Section 47 of the Local Government Finance Act 1988 and will allow West Surrey Council to make fair, reasonable and evidence-based decisions while retaining the ability to consider exceptional circumstances.  A published and consistent policy framework will support transparency, protect against arbitrary or inconsistent decisions and assist officers in applying discretion lawfully.