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

Transport and Major Work Manager

Slough Borough Council
£54,556 to £60,085 per year Inclusive of Local Weighting Allowance of £1096
Drive the future of transport and infrastructure in Slough Slough, Berkshire
Recuriter: Slough Borough Council

Service Director - Environment

City Of Doncaster Council
£108,164 per annum
We are looking for an energetic and resilient leader to become our next Service Director of Environment here at City of Doncaster. Doncaster, South Yorkshire
Recuriter: City Of Doncaster Council

Environmental Health Officer – Food, Health & Safety & Animal Licensing

Ashfield District Council
£39,152 – £41,771 per annum plus £2,000 Market Supplement (Pay award pending)
We are looking for an enthusiastic individual to carry out the full range of day-to-day functions and duties of an Environmental Health Officer Sutton-In-Ashfield, Nottinghamshire
Recuriter: Ashfield District Council

Assertive Outreach Officer

Ashfield District Council
£28,598 - £31,022 per annum (pay award pending)
This is an exciting opportunity to join the Housing Options Team as an Assertive Outreach Officer Sutton-In-Ashfield, Nottinghamshire
Recuriter: Ashfield District Council

Graduate EHO– Commercial and Environmental Protection

Ashfield District Council
£28,598 - £31,022
We are looking for an enthusiastic individual to carry out the full range of day-to-day functions and duties Environmental Health Officer Sutton-In-Ashfield, Nottinghamshire
Recuriter: Ashfield District Council
Linkedin Banner