Agenda item

Report from the Strategic Director of Finance and Customer Services.

Recommendation:

That Cabinet refuse the applications for Hardship Relief.

Consideration was given to the report which asked Cabinet to consider applications for Business Rates Hardship Relief in accordance with the Council’s Discretionary Business Rates Relief Policy (approved by Cabinet on 12 December 2016.)

Application 1 for the award of hardship relief did not meet the Council’s qualifying criteria as set out in the Policy, as an award would be considered to be giving the applicant an unfair trading advantage. The business undertook logistical activities, such as freight forwarding (particularly international freight), customs agent and order fulfilment. Their current financial difficulties were attributed to three main factors:-

·                Liquidation of a major client, which resulted in a circa £15,000 debt write-off.

·                The business was a victim of a large-scale fraud.

·                During late 2022 business started to slow down, and this continued into 2023 and 2024 as the UK economy was in decline. Utilities and business expenses have continued to increase.

The company had limited liquidity due to the difficult trading conditions and the resulting rates bill represented a major challenge to the company’s financial position. The ratepayer was applying for Hardship Relief with regards to their 2023/24 and 2024/25 rates liability. The financial implications of awarding the relief were set out in section 6 of the report.

Application 2 did not meet the Council’s qualifying criteria as set out in the Policy, as an award would be considered to be giving the applicant an unfair trading advantage. The applicant had requested that relief be awarded on three empty properties for which the company was actively seeking tenants. These properties were proving difficult to let in the current climate.

The company stated that their financial forecasts indicated that, without tenants and with continued payment of business rates, their financial stability would decline further and, potentially, leading to insolvency by April 2025. They had already taken measures to minimise expenses, including the director foregoing a salary. The ratepayer was applying for Hardship Relief with regards to their 2024/25 rates liability. The financial implications of awarding the relief was set out in section 6 of the report.

Additional details regarding both applications were set out in exempt Appendix 1.

Resolved:

That Cabinet refuse the applications for Hardship Relief.