PROPOSED CHANGES - RURAL RATE RELIEF

The West Lindsey District Council's current policy with regard to Rural Rate Relief is as follows:-

4.1 THE DISCRETIONARY RELIEF SCHEME

In order to be eligible for consideration for Discretionary Rate a business must;

· Be in the boundaries of a qualifying settlement (within an area of population of less than 3,000);

· Have a rateable value of less than £12,000; and

· Be of benefit to the local community;

and

It should be reasonable for the authority, having regard to the interests of Council Tax payers of the area, to grant such relief.

4.2 Discretionary Relief of up to 100% can be granted to businesses meeting the above criteria, and is not limited to any particular type of business.

4.3 Businesses qualifying for the 50% Mandatory Relief can also apply for Discretionary Relief on the remaining 50% of their rate bill.

4.4 Guidance issued by the Department of the Environment, Transport and the Regions in December 1997, states that any decision made to grant relief need not be "in the interests of the Council Tax payers of the authority" merely that decisions should "have regard to their interests". The Authority should balance the interests of the individual ratepayer and/or an individual community on the one hand against the general interests of the taxpayers of the authority on the other.

4.5 The guidance also advises that Authorities should consider each case on its own merits, as special factors may apply that a "set of rules" might not take into account. That does not, however, prevent Authorities from creating internal guidance so as to ensure a consistent approach.

4.6 The new Discretionary Relief scheme is inserted into Section 47 of the Local Government Finance Act 1988.

4.7 The funding of Discretionary Relief awarded is the same for all applicants, i.e. 75% of the cost is borne by the Non-Domestic Rate Pool and 25% by the Council Taxpayer.

4.8 There is no reduced funding from the Non Domestic Rate Pool in respect of Discretionary Relief awarded to businesses that have already been granted Mandatory Relief (as is the case for Discretionary Relief awarded to Charities to top-up their Mandatory Relief).