REDDITCH is to investigate the potential benefits of a new Government scheme which could let it keep a greater share of its business rates.
The borough is currently part of the Greater Birmingham and Solihull business rate pool which, after costs and shares to other authorities, including 50 per cent to central government, sees it keep £26.50 of every £100 collected in the town.
However the Government, to encourage business growth at county level, is looking for ‘business rate pool pilots’ to try out the new scheme.
Under this arrangement the pool would retain 100 per cent of the rates collected, with no share going to central government, which in return, would look to reduce the Revenue Support Grant (RSG) it gives to pool members.
For a Worcestershire pool to be considered all six local authorities, Bromsgrove District, Malvern Hills, Redditch Borough, Worcester City, Wychavon District and Wyre Forest would have to agree to take part.
With time pressing – the Government has set a deadline of October 27 to take part – finance director Jayne Pickering told Monday’s full council meeting the authority could not be a member of both a Worcestershire pool and Greater Birmingham and Solihull.
“This gives us an opportunity to move forward and see what is best for Redditch,” she told councillors.
She added that under the new scheme there would be an assumption that more money would go to Worcestershire County Council (which under the present scheme gets £9 in every £100 raised in Redditch) to help pay for more adult social care.
The Government would also want to see a slice of the money go to encourage business growth.
However it was still to be decided the split between the six authorities and the county – should they all agree to take part – the impact of the loss of RSG on Redditch, and what safety net would be in place should business rate income fall.
Even then it would still depend on Worcestershire being accepted as a pilot for the new scheme.
