Laura Sharman 11 August 2015

Councils forced to refund millions after ‘unfair’ business rate ruling

Councils in Worcestershire have warned that changes to the way business rates are calculated for GP surgeries will cost local authorities millions of pounds.

This year, a number of GP surgeries have made successful appeals against the amount they pay in business rates, after a valuation tribunal ruling found purpose built GP surgeries should pay significantly less.

Worcestershire County Council, Worcester City Council, Wychavon District Council, Malvern Hills District Council and Hereford & Worcester Fire Authority have written to the Government calling for an urgent review of the situation, saying councils will need to refund millions of pounds.

It is estimated surgeries in Wychavon will receive a £3.5m refund and £600,000 a year on an on-going basis from this financial year, while surgeries in Malvern Hills will receive a £3m refund and £400,000 a year. It is understood that refunds will be retained by NHS England and the future money by local Clinical Commissioning Groups.

Cllr Paul Cumming, portfolio holder for finance on Malvern Hills District Council, said: 'We know a number of other authorities have been similarly affected and expect the issue to eventually have an impact across the country. We are raising the issue and the unfairness of the situation with MPs, the LGA and district council representative bodies.

‘This decision will place even more strain on our finances and whilst front line services have been protected from the cuts we've had to make so far, this new situation may put them at risk.’

Cllr Lynne Duffy, portfolio holder for resources on Wychavon District Council, added: ‘The one off refund will have to come from our cash reserves and the on-going loss will have to be made up through further efficiency savings, carrying out more income generating work for other councils and growing the business rates base by providing land for new and expanding businesses.’

The councils are calling for support from the Government, arguing that it is only since 2013 that councils have been able to retain half of the business rate they collect locally.

Visit The MJ for an in-depth look at the ruling (£).

SIGN UP
For your free daily news bulletin
Highways jobs

Team Manager

Durham County Council
Grade 14 - £50,269 - £54,495
Are you an experienced, motivated leader with a passion for improving outcomes for children and young people? We’re looking for someone who can inspir Durham
Recuriter: Durham County Council

Social Worker, Connecting Families Team

Durham County Council
Grade 9 £35,412 - £39,152 (Pre-Progression) / Grade 11 £44,075 - £48,226 (Post-Progression)
Connecting families are a team within the Children in Care service in Durham. The team support families of children who are subject to a Section 31 Ca Durham
Recuriter: Durham County Council

Human Resources Officer Advice and Support

Durham County Council
£35,412 to £39,152 p.a. (Grade 9)
  Do you want a new challenge?  An opportunity to develop your career in HR or try something new? If so, come and join our team. The post is full tim Spennymoor
Recuriter: Durham County Council

Support Officer

Durham County Council
Grade 6 £28,142 - £31,022
WHAT IS INVOLVED?   Do you want a role where your organisation skills make a real difference in local communities? Join our Newly remodelled Local Net Durham
Recuriter: Durham County Council

School Crossing Patrol

Durham County Council
Grade 1 £4,800 (approx.) £12.85 per hour
Join our School Crossing Patrol Service! Are you punctual and reliable? Do you have good communication skills and a strong sense of community spirit? Durham
Recuriter: Durham County Council
Linkedin Banner