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GARY L WATSON IRRV (HONS) DEPUTY CHIEF EXECUTIVE IRRV

THE DISCRETIONARY POWERS OF A BILLING AUTHORITY TO AWARD RELIEF - IRRV EAST ANGLIA ASSOCIATION: 29TH APRIL 2016. GARY L WATSON IRRV (HONS) DEPUTY CHIEF EXECUTIVE IRRV. OUTLINE OF PRESENTATION. Background Key Developments Current Reliefs Discretionary Relief Part Occupied Relief

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GARY L WATSON IRRV (HONS) DEPUTY CHIEF EXECUTIVE IRRV

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  1. THE DISCRETIONARY POWERS OF A BILLING AUTHORITY TO AWARD RELIEF-IRRV EAST ANGLIA ASSOCIATION: 29TH APRIL 2016 GARY L WATSON IRRV (HONS) DEPUTY CHIEF EXECUTIVE IRRV

  2. OUTLINE OF PRESENTATION Background Key Developments Current Reliefs Discretionary Relief Part Occupied Relief Hardship Relief Case Law Contact Details

  3. BACKGROUND(PRE: 01/04/90) General Rate Act 1967 - Section 25: Part Occupation * Discretionary - Section 40: Charities & Kindred Organisations * Mandatory and Discretionary - Section 53: Poverty * Discretionary - Schedule 1: Hardship * Discretionary Rating Disabled Persons Act 1978 - Section 2: Institutions * Entitlement

  4. BACKGROUND (@ 01/04/90) Local Government Finance Act 1988 - Section 44A: Part occupied hereditaments * Discretionary - Sections 43 to 48: Charities, Kindred Organisations and CASC’S * Mandatory and Discretionary - Section 49: Hardship * Discretionary - Section 57 and Schedule 7A: Transitional Provisions * Entitlement

  5. KEY DEVELOPMENTS Bayliss Report (March 1996) - “A rural rate relief scheme should be introduced, relief on charity shops reconsidered, billing authorities should be able to retrospectively award discretionary relief and hardship relief defined.” ODPM Guidance Note (December 2002) - 10 chapters and 2 annexes * Chapter 3: Statutory powers * Chapter 9: State aid * Chapter 10: Notification of decisions

  6. KEY DEVELOPMENTS IRRV Committee of Enquiry (February 2007) - “The whole scheme of rate relief should be reviewed.” Lyons Review (March 2007) - “The Government should conduct a review of exemptions and reliefs to consider the scope for removing inappropriate subsidies and distortions and to simplify the system.” DCLG Statement (March 2007) - Undertake consultation and legislate by March 2010

  7. KEY DEVELOPMENTS DCLG Statement (October 2007) - “Paragraph 4.73 of the pre-budget report and paragraphs 2.77 - 2.79 of the White Paper set out the Government’s review of reliefs and exemptions as recommended by the Lyon’s Inquiry. In addition to the reforms to empty property relief that are already underway, the Government intends to consult on proposals to simplify the current set of reliefs, apart from those for charities and community amateur sports clubs. It is envisaged the reforms will protect those enjoying existing reliefs and will not increase funding of reliefs from the central business pool beyond the current level. Subject to the outcome of the consultation, the Government intends, subject to Parliament, to legislate to introduce reforms by 2010. No further changes arising from the review are proposed at this time.”

  8. KEY DEVELOPMENTS SINCE 01/04/90 Localism Act 2011 - Extension of section 47 Local Government Finance Act 1988 Business Rates Administration Review 2014 - To be announced in the March 2016 Budget Budget (March 2016) - Amendments to Section 47 Local Government Finance Act 1988

  9. CURRENT RELIEFS(@ 29/04/16) Local Government Finance Act 1988 - Sections 43 to 48: Charities, Kindred Organisations, CASC’S and General * Mandatory and Discretionary - Sections 43 & 44 and 47 & 48: Rural Areas * Mandatory and Discretionary - Sections 43 and 44: Small Business * Entitlement - Section 44A: Part occupied Hereditaments * Discretionary - Section 49: Hardship * Discretionary - Sections 47 and 57 and Schedule 7A: Transitional Provisions * Discretionary and an Entitlement

  10. DISCRETIONARY RELIEF Legislation - Sections 47 and 48 Local Government Finance Act 1988 - S.I.1989/1059 Scope - Charities, kindred organisations, community amateur sports clubs and rural areas - General Guidance - ODPM / DCLG - Examples Application procedure - Application form?

  11. DISCRETIONARY RELIEF Conditions to be satisfied - Charities, kindred organisations, community amateur sports clubs and rural areas - General Decision making process - Criteria - Officers v members Duration of relief - Start - End - Reviews Calculation of charge / relief

  12. DISCRETIONARY RELIEF Financial implications - 50/50 Appeals - Judicial review - Local Government Ombudsman State aid - Yes Key Issues - When to award - When not to award … and reasons to give

  13. DISCRETIONARY RELIEF How to approach the following? An application is received from a charity in respect of a hereditament they have occupied since 1st April 2014. The first demand notice was only served by the billing authority on 10th April 2016. An application is received from a ratepayer in respect of relief on a retail hereditament that they have occupied since 1st April 2014. The chief financial officer has enquired whether the billing authority is entitled to still receive transitional relief on a small office they occupy. The relief had been awarded from 2010/2011 through to 2014/15.

  14. PART-OCCUPIED RELIEF Legislation - Section 44A Local Government Finance Act 1988 - S.I.2008/386 Scope - Partly-occupied hereditaments Guidance - ODPM / DCLG - Examples Application procedure - Application form?

  15. PART-OCCUPIED RELIEF Conditions to be satisfied - Long v short time Decision making process - Criteria - Officers v members Duration of relief - Start - End - Reviews Calculation of charge / relief

  16. PART-OCCUPIED RELIEF Financial implications - 50/50 Appeals - Judicial review - Local Government Ombudsman State aid - No Key Issues - When to award - When not to award … and reasons to give

  17. PART-OCCUPIED RELIEF How to approach the following? An application is received in respect of a hereditament that was part-occupied from 1st December 2015 to 31st January 2016. The ratepayer can demonstrate it was part- occupied for that period, whilst they refurbished the building. An application is received in respect of a hereditament that has been part-occupied since 1stJanuary 2013 but will now be fully occupied on 15th May 2016, once refurbishment has been completed. An application is received in respect of a hereditament that has just become part- occupied. It is anticipated the proportion between occupied / unoccupied will change over the next 3 years, although the agent only requests relief up to 31st March 2017.

  18. HARDSHIP RELIEF Legislation - Section 49 Local Government Finance Act 1988 Scope - Hardship Guidance - ODPM / DCLG - Examples Application procedure - Application form?

  19. HARDSHIP RELIEF Conditions to be satisfied - Hardship - Due regard to taxpayer’s interest Decision making process - Criteria - Officers v members Duration of relief - Start - End - Reviews Calculation of charge / relief

  20. HARDSHIP RELIEF Financial implications - 50/50 Appeals - Judicial review - Local Government Ombudsman State aid - Yes Key Issues - When to award - When not to award … and reasons to give

  21. HARDSHIP How to approach the following? An application is received from a company that has stores in most high streets. A down-turn in trade has resulted in a number of their shops being closed, although at the present time, the company is hoping to keep the shop open in your area. An application is received from a local shop keeper who vacated a shop in your area on the 31st December 2015. The lease on the shop expires on the 31st December 2016. He currently has one other shop in the area which continues to trade where he employs two members of staff. An application is received from the local non-league football club that recently had a number of games called off because of adverse weather, creating severe cash-flow problems.

  22. CASE LAW General - Associated Provincial Picture Houses v. Wednesbury Corporation (1948) * Established a “standard of unreasonableness” - Investors in Industry Commercial Properties Ltd. v Norwich City Council (1986) * Clarified the “right of appeal” - R v Tower Hamlets London Borough Council Ex Parte Chetnik Developments Ltd. (1988) * Need to understand the “purpose of legislation” - Dorot Properties Ltd. v Brent London Borough Council (1989) * Can consider the “conduct of the ratepayer”

  23. CASE LAW Hardship - R v Liverpool City Council Ex Parte Windsor Securities Ltd. (1978) * Considered the “the meaning of “hardship” - R v Liverpool City Council Ex Parte Caplin (1984) * Considered the “the meaning of “hardship” - Hackney London Borough Council v Izdebski (1988) * Established magistrates “cannot consider hardship at a liability order hearing” - Wakefield Metropolitan District Council Huzminor Investment Dev. Ltd. (1989) * Considered the “the meaning of “hardship” - R v Birmingham City Council Ex Parte Mushtaq (1995) * Considered the “the meaning of “hardship”

  24. CONTACT DETAILS Gary L Watson IRRV (Hons) Deputy Chief Executive IRRV Telephone: 0207-691-8988 E-Mail: Gary.watson@irrv.org.uk

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