Select Committee on Communities and Local Government Committee Written Evidence


Memorandum by Richmondshire District Council (SBR 36)

  Richmondshire District has one of the smallest populations of any local authority, but covers one of the largest geographical areas. At 509 square miles it is actually larger than four English Counties, but within its boundary live only 50,700 people (2004 mid year estimate). Richmondshire is therefore one of the most sparsely populated District Councils in the country, its boundaries stretching from the Vale of York in the east to Cumbria in the west.

  Predominantly rural in character, a large part is situated in the Yorkshire Dales National Park. It encompasses some of England's most unspoilt and beautiful countryside and includes much of the renowned Yorkshire Dales, with some of the finest scenery to be found in the District's main dales of Wensleydale and Swaledale, which are perhaps the best known of the 26 Dales in the District.

  There are two main arterial roads, the A1 North/South and the A66 East/West five miles from Richmond, giving easy access to many parts of the country. The eastern part of Richmondshire lies within the Vale of Mowbray and is similar in character to the adjoining area of Hambleton. Richmond is the largest town in the District and Catterick Garrison are the main centres and serve a wide hinterland. Catterick Garrison is home to the largest British army garrison in the world and it is estimated that the total military related population is 17,500 people. The role of the latter is set to increase in importance, with the proposed growth of the Army garrison likely to support a widening of its services. Both of these centres have strong social and economic links with the Tees Valley and somewhat weaker links with the regional and sub-regional centres in the south.

  The remainder of the District is made up of the upland areas of the Yorkshire Dales National Park. The landscapes and settlements here are of national and international importance and the area has a strong environmental, cultural and heritage base which underpins its vital tourism sector.

  Overall Richmondshire is seen as a relatively prosperous area with higher than average educational achievement and relatively low unemployment levels of 1.2%. However, whilst unemployment across the district is low, there are areas of the District where high unemployment remains a concern. Richmondshire's economy is still largely reliant upon low paid, seasonal farming and tourism employment and average wage levels are below the national and regional averages. In contrast to the army garrison at Catterick, the majority of businesses spread throughout the District are small and medium sized enterprises that employ less than 250 people.

  In addition, there are identified pockets of considerable disadvantage with parts of Richmondshire falling into the country's worst 30% of wards for income and employment, education and child poverty, whilst the nature of the District, its size and, in some areas, sparsity of population present challenges to providing quality services with many communities among the 10% most deprived for access to services.

GENERAL INFORMATION REGARDING LOCAL TAXATION

    —  Richmondshire DC is the billing authority for both Council Tax and National Non-Domestic Rates within it's area.

    —  Richmondshire currently has 21,500 Banded Council Tax Properties and 2,300 Business Rated Properties.

    —  Of those 2,300 Business Rated Properties a great majority are small businesses that are family run.

    —  The only major conurbation of Business Properties is centred in and around the market town of Richmond. The remaining businesses are sparsely spread throughout the District.

    —  Approximately 500 properties currently enjoy Small Business Rate Relief.

THE RATIONALE FOR INTRODUCTION OF A SUPPLEMENTARY BUSINESS RATE

    —  To give back an element of Local Accountability by Councils to Businesses.

    —  To be able to make businesses themselves more accountable to the welfare of a local area.

    —  To enable projects of a local nature to be introduced thus improving that area for both businesses and members of the public.

APPROVAL MECHANISMS

    —  Will this act in the same way as a BID ie will ratepayers be required to vote in favour of any supplementary charge.

    —  Will the supplementary charge effect all of the Business ratepayers or will it be kept to an immediate area that will benefit the most from any charge of this nature.

    —  The need to liaise with and take input from local Business forums, Parish and Town Councils. Also other agencies such as Yorkshire Dales National Park.

CONSIDERATION/IMPLEMENTATION ISSUES

    —  Decisions should be taken at the lowest tier of a two-tier authority and any monies received should be retained at that level. Monies should then be paid, for instance, to the County Council for any specific projects that have a direct impact on services administered by the first tier authority.

    —  The additional cost and time in setting up and administering a Supplementary Rate. In small Councils will this cost outweigh the additional money collected?

    —  Will the billing and collection of the Supplementary Charge fall within the current regulations or will it be collected outside of the normal National Non-Domestic Rate? If collected outside, who will administer it and how?

    —  The impact on Budgets in respect of Discretionary Rate Relief if the Supplementary Charge was to be added to all Business Properties!

    —  Would empty premises be liable for the charge? If yes would they pay the full rate or a proportion thereof?

    —  Would MOD properties be involved? (Major impact in Richmondshire as £3.9 million of a total rateable value of £25.6 million is MOD related).

    —  Will empty, exempt properties pay?

    —  Would it be a one-off annual charge or would it span more than one year.

APPROPRIATE SCALE OF SUPPLEMENT

    —  Limit of supplement could be set in accordance with Council Tax capping levels.

    —  Could be in accordance with the inflationary increase in the level of the Non-Domestic Rate Multiplier.

    —  If based on rateable value will the supplement increase/decrease as Rateable Value changes or will the charge be set as at 1 April as a static amount?

THRESHOLDS/SMALL BUSINESSES

    —  Provided the supplement is to be retained at a local level all Businesses should be required to pay (as previously mentioned consideration must be given to those Business Properties that are non-profit making and enjoy an element of either/or Mandatory/Discretionary Rate Relief).





 
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