Agenda item

Policy and Resources and Finance Committees

To note action taken under urgency procedures in relation to delegations concerning write-off limits and discretionary Business Rates relief.

Minutes:

FINANCE COMMITTEE

POLICY AND RESOURCES COMMITTEE

 

(Jeremy Paul Mayhew)

(Deputy Catherine McGuinness)

26 November 2020

Report of Urgent Action Taken: Update to the Code of Corporate Governance concerning delegation of write-off limits and discretionary Business Rates relief

During 2020, in an effort to streamline and accelerate the decision-making process  as part of the Corporation’s immediate response to the Covid-19 pandemic, amendments were made to the Scheme of Delegations affecting irrecoverable debt write-off limits. The Head of Revenues was given delegation to write-off debts of up to £100,000, and the Chamberlain was given delegation to write-off debts of up to £500,000 (the pre-Covid delegated limit was £20,000). Debts over £500,000 still required approval by your Finance Committee. These temporary measures expired on 31 October 2020.

 

At the same time, the limits of delegation were increased for the Head of Revenues from £5,000 to £25,000 for awards of discretionary rate relief, made under Sections 47 and 49 of the Local Government Finance Act 1988. This was also a temporary measure which expired on 31 October 2020.

 

Whilst the temporary write-offs and discretionary rate relief limits had now expired, it was felt that the reason for the increased delegation limits continued, with many businesses and individuals likely to suffer further financial difficulties as a result of the pandemic.

 

In the absence of a November meeting of the Court its approval was, therefore, sought under urgency procedures, to extend the delegations for these revised limits until 31 March 2021.

 

A new grant scheme was also announced by the Government in the autumn, which involved regular support grant payments to businesses that have been forced to suspend trading due to the Covid restrictions. As this was a new scheme, there had been no previous requirement for delegation and, therefore, the Court was also asked to delegate authority for the payment of these business support grants to the Head of Revenues.

 

Resolved – That the action taken under urgency procedures be noted.

Supporting documents: