Latest Public Sector News


Javid: Attempts to ‘claw back’ business rates overpayments would have ‘significant negative impact’

Sajid Javid has called for an independent review of the processes that led to an overpayment of business rates to local councils.

In a letter to Melanie Dawes, permanent secretary for the Ministry of Housing, Communities and Local Government (MHCLG), Javid confirmed that the department should not seek repayment from local authorities.

Councils participating in the 100% business rates retention pilots were overpaid by a total of £36m in 2017-18, due to an error in the methodology used to calculate the payments.

However, Javid said that affected local authorities would lose 17.1% of the additional growth in business rates retained from being a part of the pilot, with eight councils losing a quarter.

For Cornwall this would mean that it was left worse off than a council that retains just 50% of its business rates, which would require the ministry to compensate it through the no detriment clause.

He warned that any attempt to “claw back the” overpayments would come at the very end of the financial year, when councils have most likely already spent the money on delivering stretching objectives as part of their devolution deals, and that seeking repayment would have a “significant negative impact.”

In order to avoid the need for the ministry to seek repayment, he has decided that it should reduce the pilot local authorities’ “on account” payments for 2018-19.

Top image: David Mirzoeff

Have you got a story to tell? Would you like to become a PSE columnist? If so, click here.


There are no comments. Why not be the first?

Add your comment



public sector executive tv

more videos >

last word

Prevention: Investing for the future

Prevention: Investing for the future

Rob Whiteman, CEO at the Chartered Institute of Public Finance (CIPFA), discusses the benefits of long-term preventative investment. Rising demand, reducing resource – this has been the r more > more last word articles >

public sector focus

View all News


Peter Kyle MP: It’s time to say thank you this Public Service Day

21/06/2019Peter Kyle MP: It’s time to say thank you this Public Service Day

Taking time to say thank you is one of the hidden pillars of a society. Bei... more >
How community-led initiatives can help save the housing shortage

19/06/2019How community-led initiatives can help save the housing shortage

Tom Chance, director at the National Community Land Trust Network, argues t... more >


Artificial intelligence: the devil is in the data

17/12/2018Artificial intelligence: the devil is in the data

It’s no secret that the public sector and its service providers need ... more >

the raven's daily blog

What came first, the bad customer or the bad customer service?

17/03/2020What came first, the bad customer or the bad customer service?

Source: PSE Feb/March 20 Stephen Bahooshy, Senior Commissioning Manager and Nicky Selwyn, Carer and Service User Group Chair, Croydon Council.   Here it is... more >
read more blog posts from 'the raven' >

editor's comment

25/10/2017Take a moment to celebrate

Devolution, restructuring and widespread service reform: from a journalist’s perspective, it’s never been a more exciting time to report on the public sector. That’s why I could not be more thrilled to be taking over the reins at PSE at this key juncture. There could not be a feature that more perfectly encapsulates this feeling of imminent change than the article James Palmer, mayor of Cambridgeshire and Peterborough, has penned for us on p28. In it, he highlights... read more >