Memorandum by Worcestershire County Council
(SBR 38)
1. THE RATIONALE
FOR INTRODUCTION
OF A
SUPPLEMENTARY BUSINESS
RATE
Answer below along with answer to Q2.
2. ACCOUNTABILITY
AND APPROVAL
MECHANISMS FOR
THE INTRODUCTION
OF A
SUPPLEMENTARY BUSINESS
RATE AT
A LOCAL
LEVEL—THE
ROLE OF
BUSINESS AND
THE WIDER
COMMUNITY
1 and 2 answer: It would provide additional
flexibility and should benefit the local community and businesses
involved.
Any infrastructure will benefit current and
future businesses and have an effect on the whole county, as it
would be deemed a more prosperous place to live.
However, meetings and consultation would be
necessary between businesses and local communities, with a vote
if appropriate in the local situation.
3. CONSIDERATION
OF IMPLEMENTATION
ISSUES, INCLUDING
THE IMPACT
ON LOCAL
AUTHORITY TAX
BILLS AND
DECISION-MAKING
IN TWO-TIER
LOCAL AUTHORITY
AREAS
Local Authority premises as well as other public
sector premises will be subject to the SBR and this will have
to be taken into account by the Local Authority when budgets are
set.
The SBR system will be easier in unitaries than
in 2 tier areas. In order to overcome the problem of many SBR's
Sir Michael Lyons suggests that only upper tier authorities should
levy supplements, with collaboration of the districts in two-tier
areas. This would seem the only practical solution, however, agreement
with all parties may be difficult to achieve.
4. THE IMPACT
OF A
SUPPLEMENTARY BUSINESS
RATE ON
EQUALISATION
The SBR raised would need to be retained locally
as suggested by Sir Michael Lyons. This would also be a transparent
system and businesses paying SBR should be able to see what their
money is paying for.
If the extra raised through a SBR is taken into
account through the NNDR or RSG then it is lost from the local
area and the area would only gain if the same proportion was raised
elsewhere and put back into the system.
5. THE APPROPRIATE
SCALE OF
THE SUPPLEMENT
Initially a low supplement should be levied.
Once the business community has confidence and trust in the SBR
system this may be increased in order to fund bigger projects
for the good of the future economic prosperity of the area.
6. THE THRESHOLD
FOR PAYMENTS
AND WHETHER
SMALL BUSINESSES
SHOULD BE
REQUIRED TO
PAY
Whether small businesses pay all or a proportion
of SBR should be decided at a local level.
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