Discretionary rate relief notes

Discretionary Rate Relief under Section 47 of the Local Government Act 1988 And Localism Act 2011

Policy framework

The following tables describe the guidelines that will be applied by the Council in deciding whether or not to grant discretionary relief and for determining the amount of relief to be granted.

General principles for the award of relief

Each application for discretionary rate relief will be considered on its own merits having regard to the Council's Community Strategy and Financial Plans and will be reviewed every year. Any requests to backdate the award of discretionary relief is restricted to claims received between 1 April and 30 September in any year and will be considered on an individual basis, having regard to the reason for the late application. The maximum period of backdate would be the 1 April of the previous year. 

In order to support the steps taken by the government to raise revenue and help deliver the governments commitments relating to education and young people, no discretionary relief will be awarded to private schools. A private school is defined as:

A school:

• at which full-time education is provided for pupils of compulsory school age (whether or not such education is provided for pupils under or over that age)
• where fees or other consideration are payable for that provision of full-time education
• which is not a nursery school

 An institution:

• which is wholly or mainly concerned with providing education suitable to the requirements of persons over compulsory school age but under 19
• at which full-time education is provided for such persons
• where the provision of such full-time education is wholly or mainly provision in respect of which fees or other consideration are payable
• which is not an independent training or learning provider

An independent training or learning provider means an institution at which education or training is provided for persons over compulsory age but under 19 under a contract with the Government, and where the consideration for the provision is payable by the Government under that contract.

The % relief indicated in these guidelines may not therefore be granted in full or at all. There may be circumstances where it is appropriate to award less, or even no relief to an organisation and it is recommended that the following additional factors be taken into account in determining whether the maximum available relief will be awarded:

• is the organisation operating at a financial surplus (as a guide an amount in excess of 12 months spending in reserves would generally not be considered for discretionary relief unless a Business Plan exists detailing how these reserves are to be used to the benefit of the local community)
• whether the organisation employs staff or relies heavily on unpaid volunteers
• does the organisation provide a service that duplicates or saturates previous service provision? Generally relief should only be granted to an organisation that compliments other services supported or provided by the Council or relieves the need for the Council to provide such services
• the organisation should not seek to promote or support political parties
• consideration will be made of the financial impact on the council and its taxpayers in making awards. Relief may be refused or capped if it is considered that the cost to the Council outweighs the benefit that will be gained from the award of the relief
• if the organisation is a national charitable organisation, generally relief will not be awarded
• as a general rule Trading Arms of charities will not be granted relief