Local authority business growth incentive (LABGI) Scheme - consultation

Report: 8
Date: 11 December 2007
By: the Treasurer and Director of Strategic Finance on behalf of the Commissioner

Summary

The Department of Communities and Local Government and HM Treasury have issued an ‘issues paper’ paper about reforms to LABGI. This paper proposes that police authorities be part of the arrangements to share in the future distribution of any future income from the scheme.

A. Recommendations

That members note the report and support the proposed response.

B. Supporting information

1. The Department of Communities and Local Government and HM Treasury have issued an ‘issues paper’ on reforms to the Local Authority Business Growth Incentives Scheme. A copy of the document has been placed in the Members Room. The aim of the LABGI scheme is to return to local government some of the additional Business Rate income paid by local businesses, as a result of economic growth and generation within the Authority area. Police authorities do not presently receive any LABGI grant.

2. The Local Government act 2003 gave powers to the relevant minister to allow additional business rates, over and above those assumed in annual financial settlements and which would normally be retained by Government, to be returned to Local Government and allocated to principal authorities, which by definition, includes police authorities. However, the scheme devised by the then ODPM, was constituted for Council’s only and the consultation documents specifically referenced a view that police authorities should be excluded from the arrangements. At the time earlier consultation documents made reference to the linkages between the impact of economic development on a range of local services, including community safety.

3. The current Consultation Paper has made it clear that as in the first consultation, the incentives should apply only to those authorities who most directly influence local economic development. For this reason the Government continues to believe that single service police authorities should be excluded from the scheme.

4. There are a number of arguments which can be put forward which demonstrate the wide range of policing activities which contribute towards economic growth and the provision of an infrastructure which allows businesses to flourish and allows local people to feel sufficiently safe and secure to use those facilities. In particular, for example, a policing role in supporting economic growth can be demonstrated in:

• Support of daytime and nightime economies, particularly by providing a visible policing presence and the creation of an environment where people feel safe and secure
• In support of initiatives which tackle problems associated with the misuse of drugs, which often undermine local economic wellbeing
• By working with planning authorities to ‘design out’ crime from new facilities
• Safer Neighbourhoods Programme – SN teams have been established in every London ward as of the end of December 2006, with the teams responsible for significant amounts of MPS problem solving, intelligence gathering and law enforcement
• LAA partnership working
• Employer Supported Special Constable Programme

 C. Race and equality impact

There are no specific implications arising from information set out in this report, but measures to allow local people to feel sufficiently safe and secure to use facilities is something which might be particularly welcomed by women and the elderly.

D. Financial implications

1. The recent Comprehensive Spending Review announcement on 9 October has indicated that a future LABGI scheme will allocate £50m nationally for 2009-10 and £100m in 2010-11. There will be no LABGI scheme in 2008-09.

2. It does seem that there are arguments for the police service to be part of any future scheme and that a response to the consultation paper should support this strategic aim. Responses to the consultation paper are due by 12 December.

E. Background papers

None

F. Contact details

Report authors: Ken Hunt, MPA & Anne McMeel, MPS

For more information contact:

MPA general: 020 7202 0202
Media enquiries: 020 7202 0217/18

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