Reduction or Remission of Rates under Section 49 Hardship
Introduction / Policy Requirements
Section 49 of the Local Government Finance Act 1988 gives billing authorities
discretion to reduce or remit the payment of rates whilst giving regard to the
interests of its Council Tax payers. This legislation gave the power to reduce
or remit rates on both occupied and unoccupied property rates.
The ratepayer must satisfy the Council that the ratepayer would sustain
hardship if they did not receive the relief. The test of “hardship” need not be
confined strictly to financial hardship as the interests of the community in the
area may be affected if the relief is not awarded. 25% of any relief or
remission is funded by Council Tax payers and the adverse effect from
refusing the application may outweigh the cost to the taxpayers.
This policy sets out how the Council will exercise this discretion and the
criteria that must be satisfied.
Criteria for using powers
The applicant must: be providing a unique service to Torbay
 produce financial records demonstrating any loss of income arising from
the factors affecting their trade
 apply for the relief on a temporary basis and not a year on year relief to
help pay the rate liability
 show that the rate liability is a significant percentage of their total business
expenditure
 submit any other evidence that may be relevant, in their view, to cause
that hardship
 show that if the business was to close due to this hardship then there
would be a detrimental effect on the local economy due to unemployment
and it should therefore be in the interests of the Council Tax payers to give
relief.
Responsible Officer
 Executive Head of Finance
Once all the information has been received by the Revenue Section a report
is submitted to the Head of Finance for consideration of the application.
Decision making process
The Head of Finance will decide every application for Hardship relief where
the ratepayer has satisfied the required criteria as laid out in this policy.
Notification of decision
The Council will notify a ratepayer of its decision within 28 days of receiving
sufficient information to make a decision.
Review of decision/ re-determination requests
Under the Local Government Finance Act 1988 there is no right of appeal
against the Council’s use of discretionary powers. However, the Council will
accept a customer’s request for a re-determination of its decision, and
whether any additional information against the required criteria has been
provided to justify a change to its decision.
Notification of review / re-determination decision
The Council will notify a ratepayer of its decision within 28 days of receiving a
request for a re-determination.
Policy Review
This policy will be reviewed annually, or sooner if appropriate, to take account
of operational adjustments or changes to legislation. The Council will seek for
amendments to this policy to be approved through Cabinet.