To answer questions (if any) from elected members pursuant to Rule 11 of the Council’s Rules of Procedure
Minutes:
The Deputy Chief Executive reported there was one question from Councillor Peter Bedford and three questions from Councillor Stephen Woodliffe.
Question asked by Councillor Peter Bedford pursuant to paragraph 11 of the Rules of Procedure as set out in the Constitution:-
Could the finance portfolio holder please answer a question which has been banded around on Facebook about Boston Borough Council giving discounted business rates to European Shops Trading in Boston.
Response by Councillor Jonathan Noble
Whilst being unable to comment on the Facebook posts as copies haven’t been provided, this response provides general information on the rate relief available to retail businesses.
The Retail, Hospitality and Leisure Relief scheme, which is administered by local authorities on behalf of central government, provides up to 50% relief for eligible businesses, up to a cash limit of £110,000 per business. This is a temporary scheme, and as such the government has not changed legislation but funds local authorities to use their discretionary powers to administer a local scheme in line with guidance. In the Boston Borough Council area, 278 businesses are currently in receipt of this relief.
Small Business Rate Relief (SBRR) of up to 100% is also available where the businesses property and ratepayer meet qualifying criteria. Eligible businesses can get the retail discount alongside SBRR where they get less than 100% SBRR.
Rate relief schemes are open to all eligible businesses that meet scheme criteria.
Supplemental question asked by Councillor Bedford pursuant to paragraph 11.6 of the Rules of Procedure as set out in the Constitution:-
The answer doesn’t get to the bottom of the problem. The article on Facebook raised concerns and made Members and the Council look pathetic, to which I took exception and promised to raise the question at Council. Do you agree the matter needs an urgent scrutiny meeting to ask questions in depth and receive evidence that nobody is getting preferential treatment.
Response by Councillor Noble
The key point is in the last sentence of my response, the scheme is open to all, there is no differential between EU and UK businesses. I will raise your request with the Leader.
Questions asked by Councillor Stephen Woodliffe pursuant to paragraph 11 of the Rules of Procedure as set out in the Constitution:-
1. With reference to the properties owned by Boston Borough Council, when agreeing a tenancy does the Borough include a clause in the agreement that no sub-letting may occur without the prior agreement of the Borough Council?
Response by Councillor Jonathan Noble:
I thank Councillor Woodliffe for notification of his question.
When agreeing any lease, licence or other form of property letting, ‘sub-letting’ is a normal clause that is included; limits on sub-letting are case specific; where the concept of sub-letting is acceptable in the negotiation phase, it would be normal to caveat the resulting clause with ‘subject to written consent from the landlord’; in other cases, for example where a Tenancy at Will were an appropriate form of agreement, sub-letting may be explicitly prohibited.
Supplemental question asked by Councillor Woodliffe pursuant to paragraph 11.6 of the Rules of Procedure as set out in the Constitution:-
Thank you for your response. Does the tenancy agreement clause invoke a rent review if sub-letting occurs?
Response by Councillor Noble
I will provide a written response to the supplementary question.
2. With reference to the properties owned by Boston Borough Council and rented out, are you satisfied that each of the rents for those tenancies represents a fair return for the Council Taxpayer?
Response by Councillor Jonathan Noble:
I thank Councillor Woodliffe for notification of his question.
I am satisfied that the rents associated with the Council’s portfolio are set appropriately and that the Council is a good landlord that will always negotiate firmly but fairly with the interests of the taxpayer and wider community always being integral to such negotiation and agreement.
For assurance, where an agreement allows for a rent review, they are carried out in accordance with the review terms set out within the contractual agreement in place; for example, through the application of RPI at certain points.
Where an agreement allows a review of the ‘market rent’, the Council would appoint a suitably qualified Chartered Surveyor to assess that market rent, as would happen in respect of any lease renewal. Specialist legal advice is always sought for the preparation of leases with any other technical input required to inform any specific clauses taken as necessary.
Supplemental question asked by Councillor Woodliffe pursuant to paragraph 11.6 of the Rules of Procedure as set out in the Constitution:-
Thank you for your response. Some Councillors are of the opinion that some rents are not providing a reasonable return for the Council. What steps have been taken to ensure the Council and tax payers are not being ripped off?
Response by Councillor Noble
A review process is available and each tenancy is looked at on a case by case basis.
3. It is clear that organic farm products sell at premium prices, so would you agree with me that it would be a failure of management if a farm rent were to be lowered to a tenant intending to grow organic products?
Response by Councillor Jonathan Noble:
I thank Councillor Woodliffe for notification of his question.
Firstly I can confirm that the Council does own a farm, Corporation Farm at Midville. The Principal Lease for the farm was entered into on 2 February 1945 with a protected tenancy under the Agricultural Holdings Act of 1986 remaining in place today. The rent payable under the tenancy is currently subject to a Demand for Rent Arbitration that is due for determination by 6 April 2023; that Notice of Demand having been served on 20 January 2022.
The process of rent review for the farm is prescribed in law and set out at Schedule 2 of the Act; the Council has appointed a specialist agricultural surveyor to lead the rent negotiation on its behalf in accordance with the law and to propose, and hopefully agree, in consultation with the Council, a new rent. If a new rent cannot be agreed by both parties then there will be a need for arbitration or referral to a third party to determine the rent payable.
Demands for Rent Arbitration under the Act can be served by a landlord or by a tenant; a landlord would normally serve Notice if they felt that there was scope to secure a rent increase, and a tenant if they thought they could secure a rent decrease; the Council is confident that there is scope to increase the rent from 6 April 2023, however, until due process has been followed and agreement reached or arbitration or referral to a third party concluded, it is not possible to suggest what that increase may be.
Supplemental question asked by Councillor Woodliffe pursuant to paragraph 11.6 of the Rules of Procedure as set out in the Constitution:-
Thank you for your response. Has such an occurrence occurred and if so when did it occur and which portfolio holder was responsible?
Response by Councillor Noble
Not to the best of my knowledge, I will provide a written response.