Agenda and draft minutes

PRESENT:   C Carter (Wakefield MDC)

A Cross (Bradford MDC)

In Attendance:  R Ellis (LCC), R Colley (LCC), D Moore (LCC),

and H Gray (LCC)

To consider any appeals in accordance with  Procedure Rule 15.2 of the Access to Information  Rules (in the event of an Appeal the press and  public will be excluded).

There were no appeals against the refusal of inspection of documents.

To identify items which have been admitted to the agenda by the Chair for consideration. (The special circumstances shall be specified in the minutes).

There were no late items of business.

To highlight reports or appendices which officers have identified as containing exempt information, and where officers consider that the public interest in maintaining the exemption outweighs the public interest in disclosing the information, for the reasons outlined in the report.

1)  To consider whether or not to accept the officers’ recommendation in respect of the above information.

2)  If so, to formally pass the following resolution:-

RESOLVED – That the press and public be excluded from the meeting during consideration of the following parts of the agenda designated as containing exempt information on the grounds that it is likely, in view of the nature of the business to be transacted or the nature of the proceedings, that if members of the press and public were present there would be disclosure to them of exempt information, as follows:-

The agenda contained no exempt information.

To receive apologies for absence (if any).

The following apologies for absence and notifications of substitutes were reported:

Councillor Hinchcliffe (Bradford) and A Cross attended as substitute.

Councillor Shaw (Wakefield) and C Carter attended as substitute.

Apologies were also received from Councillor Pattison, S Mawson and K Mulvaney (Kirklees), Councillor Scullion and R Tuddenham (Calderdale), T Riordan and V Bradshaw (Leeds), A Balchin (Wakefield), I Floyd and D Mitchell (York).

To disclose or draw attention to any interests in accordance with Leeds City Council’s ‘Councillor Code of Conduct’.

No declarations of interest were made.

To approve as a correct record, the minutes of the previous meeting held on 11^th March 2024.

RESOLVED – The minutes of the previous meeting held 11^th March 2024 were agreed as a correct record.

To consider the report of the Chief Officer Financial Services, Leeds City Council, which sets out the context in which the 2024/25 Leeds City Region Business Rates Pool has been set up and includes the governance arrangements and Memorandum of Understanding for the Leeds City Region Pool, and the Terms of Reference for the governing Joint Committee. The report also presents the current position of the 2024/25 Business Rates Pool, including the latest income projections for 2024/25 and the proposed allocation of funding for 2024/25; and the proposed arrangements for the continuation of the Leeds City Region Business Rates Pool into 2025/26.

The Chief Officer, Financial Services, Leeds City Council submitted a report for consideration which set out the following:

a)  The context in which the 2024/25 Leeds City Region Business Rates Pool had been set up;

b)  The governance arrangements and Memorandum of Understanding for the Leeds City Region Pool, and the Terms of Reference for the governing Joint Committee which were included in the report at Appendix A and Appendix B respectively;

c)  The provisional 2023/24 financial outturn and the proposed allocation of funding for 2023/24;

d)  The current position of the 2024/25 Leeds City Region Business Rates Pool, including the latest income projections for 2024/25;

e)  The proposed allocation of funding for 2024/25;

f)  The proposed arrangements for continuation of the Leeds City Region Business Rates Pool into 2025/26.

The report highlighted that the 2024/25 Leeds City Region Business Rates Pool had been designated by Government from 1^st April 2024 under the 50% Business Rates Retention Scheme, thus allowing the Pool to retain levy payments within the region that would otherwise have to be paid to Central Government. The MoU had been approved by the Secretary of State and outlined the distribution mechanism for the pooled levy payments:

1. The running costs of the pool, if any, will initially be paid by the Lead Authority and will be re-imbursed to them from the Net Retained Levy.
2. If after A the Net Retained Levy is greater than £0 (i.e. the pool has made an overall gain), then the first £200k of Net Retained Levy will be paid to the City of York Council recognising that this member is the largest contributor of funding to the pool. If there is any further Net Retained Levy, then the joint committee may make decisions as to how it can be used to further regional economic growth.
3. If after A and B, the remaining Net Retained Levy is greater than £0, that is the Net Retained Levy is more than that required for the administration fee, for the purposes of the decisions of the joint committee and the £200k payment to York, then it becomes a Residual Benefit of the Pool and it will be returned to all member authorities using the following apportionments: -

• 25% in proportion to growth above the baseline, to continue to incentivise growth in the business rates tax base in the region,
• 25% in proportion to individual populations of Member Authorities, to recognise the most significant driver of need,
• 25% to the 4 top-up authorities in proportion to the top-ups they receive from Government, to recognise that without the participation of top-up authorities levy payments could not be retained within the region.
• 25% in proportion to the levy payments made to the pool, to recognise the contribution of the 2 levy-paying authorities to the income of the pool,

D.  Where the Residual Benefit of the Pool is less than £0, (i.e. where the Pool makes an overall loss) – the loss will be shared between all member  ...  view the full minutes text for item 7.