Issue - meetings

Peter Stuart, Head of Corporate Resources introduced the report.  He noted that the settlement had been announced and there were no changes to the draft to be considered by Council at the next meeting.  The report had been scrutinised. He explained how National Non-Domestic Rates (NNDR) is designed to reward Local Authorities which encourage business growth and the increased revenue from the Rampion site. The money received is a bonus for encouraging the renewal energy site. The figures would be adjusted for 2021/22 based on projections due to the sites at Rampion and DPD. It was likely that the Council may not have to use general reserves next year (2021/22).   A reset was introduced to NNDR in 2014 which has not been activated but if activated it removes any growth over the notional need of the Council.  If the reset is triggered it would affect 2022/23. He is confident it will shortly be triggered and less NNDR income will be received in the following years, and then there will be an extra draw on general reserves.  He will provide an update for Members in MIS.  

The Leader noted the benefits of this element of a green recovery and the probable use of general reserves in future years.

The Deputy Leader highlighted the uncertainty of the current climate for longer-term planning.  She acknowledged fiscal certainty concerns regarding the benefits of renewable energy sites and whether the Council might accept more applications for renewable energy sites.

The Cabinet Member for Economic Growth welcomed an MIS update for Members and asked if the settlement and reset might happen at the same time, as the Council needs to plan soon for 2023/2024.

The Cabinet Member for Community also expressed concern with the uncertainty regarding the reset and further development of the rural areas of the District. 

The Cabinet Member for Customer Services thanked the Head of Corporate Resources for his clear explanation.  She expressed concern at the Council’s increased expenditure due to Covid and asked if that had been considered. She noted that West Sussex County Council had received more funding from central Government.

The Head of Corporate Resources confirmed the Council retains the additional funds from Rampion until the reset is activated and the base line need is adjusted or changes are made to the NNDR system, i.e. rates for virtual businesses. The revenue is secure for the coming year.  Local Authorities would like more certainty with NNDR funding.  It would be too late when the settlement figure is released and more might be known when the next Budget is announced.  The additional expenditure, due to Covid, had not been considered and appeals for some types of facility were still in progress.  Figures for 2021/22 are known and partly for 2022/23.

The Leader advised it was difficult to make forecasts and recommend budgets in these uncertain times.  The Council has a strong track record and has diversified its income to ensure a strong financial position.  Covid has had a severe impact reducing income  ...  view the full minutes text for item 6