Local Authority Business Growth Incentives -Consultation Paper
Q1: Do you agree with the principles of the scheme?
The consultation document states the principles for the scheme as:
1)The incentive must be applicable to all authorities
2)The distribution of benefits must be fair
3)The scheme should be as intelligible and transparent as possible
Borough of Poole Council would prefer these to be amended as follows:
Principle 2 to read:
"The distribution of benefits must be equitable"
Principle 3 to read:
"The scheme should be intelligible and transparent. It should also be simple to administer"
Q2: Do you agree with using an eight year period for setting the trend?
A: We have no objection to an eight year period.
Q3: Are there models for setting the baseline that the Government has not considered that need to be considered?
A: None that we can suggest.
Q4: Which of the baseline models is your preferred option and why?
A: Of the proposed models, the sub-regional baseline model is our preferred model and would appear to be the most fair for all local authorities.
Q5: Which of the two preferred options for floors and scaling factors (high/high and medium/medium) do you think provides the best balance between financial support and financial incentive?
A: Of the two preferred options, Poole prefers the medium/medium option. However, Poole also feels a range of options could be made available to better suit individual authorities.
Q6: Do you agree with using formula spending shares as the measure for determining ceilings? Do you agree that a 1% ceiling in year one of the scheme rising in line with the schemes (ie reaching 3% in year three) provides an adequate balance of incentive and cap on gains?
A: Using FSS is a too simplistic and convenient method of calculating the
Geiling. Without establishing comparative ceilings using RV or Per Head models it is difficult to establish which method would be best for Poole and therefore offer the best incentive/largest cap.
Q7: How do you think that benefits should be shared between different tiers of local government?
A: No comment in view of the fact that Poole is a Unitary Authority and so will not be affected by this question.
Q8:lf a local authority would you like to volunteer to be part of the administrative dry run?
A: Poole would be willing to consider this if the Government commits to fully fund all costs.
Additional comments
The consultation paper does not cover the detail of the administrative arrangements which would need to be put in place. Borough of Poole wishes to emphasise how important it is that the scheme is clear and simple to administer and takes account of all the issues surrounding business rate collection.
If and when this scheme is implemented, the Government must ensure that local authorities are adequately funded for all additional work.
Borough of Poole
Civic Centre
Poole
Dorset BH15 2RU
10 October 2003