Issue - meetings

To receive the report of the Strategic Director for Corporate Resources.

The report on Box-shifting was taken as read and Members were advised that the council complied with legislation and was waiting for central government to assess the impact and look at anti-avoidance regulations.

The Head of Service Finance responded to Members questions making the following points:

·         the Business Rates Team carried out inspections of those box-shifting to ensure compliance with legislation; and

·         from 1^st April 2024 the Government extended the re-set period for empty property relief (EPR) from 6 weeks to 13 weeks and the impact on Exeter was broadly as forecast, with only a modest reduction in the level of EPR and no significant reduction in the number of businesses that show signs of practicing ‘box shifting’.

Councillor Moore proposed a motion, seconded by Councillor Holland, that the Customer Focus Scrutiny Committee request that the Executive Findings from this work are sent to government with a request that Local Authorities were given more powers when deciding when empty property rates relief can legitimately be granted.

The Councillor felt that it was a good idea to send feedback to government but not sure about giving powers to Local Authorities and proposed that the motion be amended.

In response to a Member’s question, the following information was provided:

·         the government planned to consult on anti-avoidance;

·         the Welsh Government had concluded their consultation and proposals would take effect from April 2026;

·         local powers may not be needed as banning the practice had been campaigned for nationally; and

·         it was likely that the government would closely monitor what took place in Wales and may bring forward similar legislation.

Councillor Read and Councillor Moore accepted the amendment proposed by Councillor Pole and following a vote was unanimously CARRIED.