Erewash borough councillors have rubber-stamped a decision to include the council in a bid for Derbyshire to become a trial area for a 100% rates retention pilot in 2018/19.
A report at the meeting of Council Executive this week (5 December) confirmed that Erewash Borough Council is part of the Derbyshire Rates Pool – along with all the county’s local authorities – which is hoping to be chosen as a business rates pilot area by the government.
The move comes after the government announced it was expanding the five current 100% pilots which started in April this year. Confirmation of the successful applications could be released later this month.
Councillor Wayne Major, Erewash Borough Council’s Deputy Leader and Lead Member for Resources, says:
If the bid to be a 100% pilot area is successful, there is the chance to retain a significant amount of additional rates next year within Derbyshire – possibly in the region of £21m if projections are met. These are financially challenging times and with council budgets continuing to be under pressure, it is a sensible move. Tapping into a key source of income such as business rates will be a vital part of being able to balance future budgets.
Under the 100% pilot programme, the retained money would be split between the councils and 30% of each authority’s gain ring-fenced to support economic regeneration in the county. The Derby and Derbyshire Authorities Joint Committee for Economic Prosperity would make the approvals on funding for individual projects.
The government has agreed a ‘no detriment’ clause for the 2018/19 pilots which will guarantee that those taking part will not be worse off as a result.