Dan Peters 03 June 2019

Government pays £15m to councils after business rate 'error'

The Government may have to pay out up to £15m to councils after it made yet another error in its business rate pilot administration.

It admitted it will be making ‘special payments to a number of local authorities’ after making the same error in the formula that prompted it to order a review last year.

The Ministry of Housing, Communities and Local Government (MHCLG) permanent secretary Melanie Dawes said considering former Valuation Office Agency chief executive Andrew Hudson has carried out a review into the department’s oversight of the business rates system in 2018 it was ‘all the more disappointing that the incorrect formula in the guidance note, which originated from the computation error, which was discovered last year, was not corrected before that guidance note was reissued’.

Ms Dawes said the ministry was ‘looking into the precise circumstances of how this happened’ and she had now decided to ‘accelerate and widen’ a post-implementation review of the Hudson review.

In a letter to auditor general Amyas Morse, Ms Dawes said she would commission a ‘broader review, for which we intend to appoint external advisers’.

The letter read: ‘This year, there has been no mistake in any of the calculations, nor any payments, relating to the business rates pilots.

'However, as last year’s error was corrected for, officials failed to update the relevant guidance note.

'As a result the NNDR1 [national non-domestic rates] guidance note for the financial year 2019/20, which was issued to local authorities on 17 December 2018, contained the same error in the same formula.

‘The incorrect formula has the impact of exaggerating the forecast benefit of participating in a pilot.

‘Given that the financial year has already started, and particularly since the error in the guidance repeats the same mistake as last year, the secretary of state has exceptionally decided to offer a goodwill payment to those councils that used the incorrect guidance for their financial planning in 2019/20 and where the consequences of doing so could be more difficult to mitigate.’

SIGN UP
For your free daily news bulletin
Highways jobs

Part Time Finance Administrator

Essex County Council
Up to £25081.00 per annum + Pro Rata
Part Time Finance AdministratorPermanent, Part Time£25,081 per annum, full time equivalentLocation
Recuriter: Essex County Council

Senior Customer Services Adviser (Housing Repairs

Mansfield District Council
£28,598 - £33,699 per annum
Mansfield is a town of towns at the centre of things in Nottinghamshire - a place of many strong connections Mansfield, Nottinghamshire
Recuriter: Mansfield District Council

No Wrong Door Deputy Manager

North Yorkshire Council
From £47,181 up to £51,356 per annum pro rata
We’re looking for a passionate, driven, and dynamic professional to join our management team within our innovative No Wrong Door (NWD) service. Scarborough, North Yorkshire
Recuriter: North Yorkshire Council

Senior Resource Centre Worker

North Yorkshire Council
£34,434 - £38,220 per annum pro rata
You will work closely with families and other professionals to ensure that you have sound knowledge of the children you are caring for Morton on Swale, Northallerton
Recuriter: North Yorkshire Council

Social Worker

North Yorkshire Council
£38,220 - £42,839 per annum, pro rata
Our Family Assessment and Support Teams you will work with a range of children and their families, carers and networks. Selby, North Yorkshire
Recuriter: North Yorkshire Council
Linkedin Banner