Issue - meetings

The Assistant Director of Finance and Customer Services presented the Medium Term Financial Plan Budget Update and Consultation Report 2026/27 to 2028/29 – Business Rates Pool for the Executive Committee’s consideration.

Members were informed that, in accordance with the Local Government and Finance Act 2012, Councils were permitted to work together to pool business rates.  Where Councils participated in business rate pools, this operated on a no detriment principle, meaning that Councils should not be placed at a disadvantage as a result of participating in a pool. 

Members were informed that there were some advantages arising from pooling business rates which included:

·             Retaining a larger proportion of business rates growth locally.

·             Reducing the associated levy payable to the Government.

·             Sharing the risks and rewards.

·             Supporting regional economic development through collaborative investment.

Redditch Borough Council had previously taken part in the Herefordshire and Worcestershire Business Rates Pool.  Therefore, agreement to participate in this pool would ensure continuity.  Alternatively, the Council could decide not to participate in a business rates pool in 2026/27.  There was a deadline of 24^th November 2025 by which the submission of proposals for business rate pools for 2026/27 needed to be made.

Following the presentation of the report, Members discussed the proposals and in doing so commented that participation in a business rates pool was considered to be good practice.  Members also noted that participation in a business rates pool would help to reduce financial risks for the Council.  On this basis, Members commented that they were in agreement with proposals to participate in the Herefordshire and Worcestershire Business Rates Pool in 2026/27.

The recommendations were proposed by Councillor Ian Woodall and seconded by Councillor Juma Begum.

RECOMMENDED that

1)          the Council approve joining the Herefordshire and Worcestershire Business Rates Pool for 2026/27; and

2)          authority for the decision on the financial arrangements be delegated to the Section 151 Officer following consultation with the Portfolio Holder for Finance.