A scheme which could see up to £2million in business rates being retained to boost the local economy across Somerset has been approved by the Government.
As part of the recent Local Government Settlement, the Government has given the go ahead for the establishment of the Somerset Business Rates Pool; consisting of Somerset County Council, Bath & North East Somerset (B&NES) and North Somerset Unitary councils, Mendip, Sedgemoor and South Somerset District councils, and Taunton Deane Borough Council, forming a continuous geographic area centring on the ceremonial shire county of Somerset, with a combined population of over 900,000.
The Pool will build on the economic and community links between Bath, the Somer Valley and Mendip market towns of Midsomer Norton, Radstock, Frome, Shepton Mallet, Street, Wells and Glastonbury in the east, and the principal towns of the Somerset Levels in the west; including Bridgwater, Burnham on Sea, Weston Super Mare, Nailsea, Clevedon and Portishead. The administrative centre of the county is located in Taunton, with the M5 motorway passing Wellington and running to the south of the county and Yeovil and small market towns including Wincanton, Chard and Ilminster.
Bath & North East Somerset Council has been named as the lead authority for the Somerset Business Rates Pool. Councillor David Bellotti (Lib-Dem, Lyncombe), Bath & North East Somerset Council’s Cabinet Member for Community Resources, said: “Overall, we estimate the pool has the potential to ensure around a further £2million of Business Rates are retained locally to be shared between the member councils, encouraging closer working on the management of business rates between the partners.
“The region is forecast to experience above average growth over the next few years. Pooling Business Rates will help to mitigate local demographic and service pressures arising from additional growth and, by fully rewarding our communities for delivering such economic growth, will provide additional stimulus to new development. This will act as a further incentive for all the pooling authorities to proactively work together to drive economic growth within Somerset. The Pool will provide improved opportunities for co-ordination across the region, further re-investment in transport links in the area and will build on the joint-working that is already taking place, for example, between B&NES and North Somerset, including immediate opportunities to share expertise across the Pool membership.”
The rationale for the Somerset Business Rates Pool is to encourage economic growth; therefore Pool members are committed to using the additional business rates resource to promote further growth in the local economy. Subject to budgetary constraints, each Pool Member will allocate a significant proportion of their allocated Pool Dividend for activities that support:
· The creation of an environment where it is easy for businesses to start, locate and thrive
· Acceleration of the growth of the economy in Somerset through targeted support in the key strategic sectors.
The Somerset Business Rates Pool will complement B&NES and North Somerset councils’ participation in the West of England City Deal agreement and support and incentivise the growth in construction businesses and suppliers associated with the major development at Hinkley Point, the expansion of Bristol Airport as well as investment in large-scale distribution centres within the region, development at key junctions on the M5 corridor and the Firepool central commercial district in Taunton, plus commercial development arising out of the recently-announced dualling of the A303. A wider Pool for Business Rates Retention would allow the full benefits of economic growth arising from the strategic transport and infrastructure investment expected from the City Deal and these other major developments to flow back to the local bodies, and therefore their communities, hosting that development.
ENDS