Agenda item
Motion C - Discretionary Business Rate Local Discount and Engagement Proposed by Councillor Ruth Smith, Seconded by Councillor Michael Brooker
2026 has seen the introduction of a new Business Rates system, with updated rateable values and changes to sector-specific rate relief.
Councillors have been hearing from town centre businesses that the increases are a shock and a threat to the viability of their businesses. There are reports that it is hard to speak to council advisors about the changes.
This Council would like the Executive members and CEO to consider adopting a Local Discounts and Incentives policy to safeguard the prosperity of West Oxfordshire’s high streets, local jobs and to promote growth within and relocation to the district, in the post 2026 rates landscape.
In addition, assurances are sought that small businesses eligible for the Supporting Small Business Relief scheme can access clear information about how their rates will vary year on year until the full new rate is reached.
Council notes:
- The finance team perform their business rates functions excellently every year, as evidenced by External Audit and internal audit.
- Business Rates are set by national government. WODC is responsible for collection.
- The powers for granting discretionary rate relief by Councils are provided in Sections 44a, 47 and 49 of the Local Government Finance Act 1988, which was amended by the Localism Act 2011 to incorporate wider powers to grant relief under discretions.
- The Council website has the Discretionary Rate Relief Policy at the bottom of the Rate Relief page. This policy lists Local Discounts and Incentives as a category under its powers, but does not contain a section indicating any policy for that category of relief.
https://www.westoxon.gov.uk/business-and-licensing/business-rates-and-rate-relief/rate-relief/
Council resolves to:
- Agree that the Executive and CEO should consider whether a Local Discount and Incentives policy could enhance the economic objectives and wellbeing of the District.
- Agree that communications with small businesses and all residents be reviewed and improved to ensure they all understand the 2026-27 £800 cap and how that will vary during transition to their new rates in the coming years.
Minutes:
Councillors Michelle Mead and Alex Wilson left the meeting.
Councillor Ruth Smith introduced the item. Councillor Smith read out the motion as follows;
“2026 has seen the introduction of a new Business Rates system, with updated rateable values and changes to sector-specific rate relief.
Councillors have been hearing from town centre businesses that the increases are a shock and a threat to the viability of their businesses. There are reports that it is hard to speak to council advisors about the changes.
This Council would like the Executive members and CEO to consider adopting a Local Discounts and Incentives policy to safeguard the prosperity of West Oxfordshire’s high streets, local jobs and to promote growth within and relocation to the district, in the post 2026 rates landscape.
In addition, assurances are sought that small businesses eligible for the Supporting Small Business Relief scheme can access clear information about how their rates will vary year on year until the full new rate is reached.
Council notes:
- The finance team perform their business rates functions excellently every year, as evidenced by External Audit and internal audit.
- Business Rates are set by national government. WODC is responsible for collection.
- The powers for granting discretionary rate relief by Councils are provided in Sections 44a, 47 and 49 of the Local Government Finance Act 1988, which was amended by the Localism Act 2011 to incorporate wider powers to grant relief under discretions.
- The Council website has the Discretionary Rate Relief Policy at the bottom of the Rate Relief page. This policy lists Local Discounts and Incentives as a category under its powers, but does not contain a section indicating any policy for that category of relief.
https://www.westoxon.gov.uk/business-and-licensing/business-rates-and-rate-relief/rate-relief/
Council resolves to:
- Agree that the Executive and CEO should consider whether a Local Discount and Incentives policy could enhance the economic objectives and wellbeing of the District.
- Agree that communications with small businesses and all residents be reviewed and improved to ensure they all understand the 2026-27 £800 cap and how that will vary during transition to their new rates in the coming years.”
Councillor Micheal Brooker seconded the motion and emphasised the importance of supporting local businesses, which were stronger contributors to the local economy than national chains.
At this point the Chair, proposed suspending Council procedure rule 12A, before moving onto the debate. Procedure rule 12A only allowed 60 minutes for motions, which at this point had been reached. The motion was seconded by the vice-chair and voted on as follows.
For 23, Against 10, 1 Abstention
Council Resolved to:
- Suspend Council Procedure Rule 12A in order to allow more than one hour for motions.
The Council then debated the motion, raising the following points;
- Significant increases in business rates from 2026 were causing concern and confusion among local businesses, despite transitional relief, and members felt the Council should do more to explain and support businesses through the changes.
- Members highlighted that the Council’s discretionary rate relief policy includes scope for local discounts and incentives, which were not currently used, and suggested these could help support local businesses, high streets, and economic wellbeing.
- The importance of small and medium-sized businesses, charities, and community organisations to the local economy and community life was emphasised, with concerns raised that rising rates and wider cost pressures could threaten their viability.
- It was noted that existing reliefs were available and that an updated discretionary rate relief policy was due to be considered by the Executive, alongside a need to improve communication and engagement with affected businesses.
Council resolved to:
- Agree that the Executive and CEO should consider whether a Local Discount and Incentives policy could enhance the economic objectives and wellbeing of the District.
- Agree that communications with small businesses and all residents be reviewed and improved to ensure they all understand the 2026-27 £800 cap and how that will vary during transition to their new rates in the coming years.
Voting record for 38 for, Against 0, Abstentions 2.
Councillors Andrew Beaney and Sarah Veasey left the chamber.