Decision details

This report covers new business rate relief that the Government has announced for ten years, covering the period 1 April 2024 to 31 March 2034.

The Film Studio Relief Scheme will provide eligible film studios with a 40% reduction on their gross business rates during the ten-year period. This reduction is inclusive of any transitional relief which may apply.

As there are a number of national business rates revaluations scheduled to occur during the span of this relief, the Government may change the relief percentage in the future to keep a similar level of benefit for these studios.

As the scheme is designed for a limited period only, the Government is not making changes to legislation, but instead providing detailed guidance, and asking local authorities to use powers under s47 of the Local Government Finance Act 1988 to set up the scheme. Government will then fully repay the cost of relief awarded in line with their guidance.

The government only released the guidance to this policy on the 20^th February, hence the need for an urgent portfolio holder decision to ensure that this policy can be implemented as part of the 2025/26 business rates billing process.

Decision made and reasons:

This decision adopts the following discretionary business rate relief scheme.

Film Studio Relief Scheme

This is a scheme to cover the period 1 April 2024 to 31 March 2034, for eligible film studios.

Eligibility for the relief will be determined by the Valuation Office Agency (VOA), which is the body responsible for valuing properties for business rate purposes. The VOA will notify the Council of any properties to which the scheme will apply.

There are currently two studios within the borough that we expect to be told will qualify for the relief. They are types of facilities which saw exceptionally large increases at the 2023 revaluation.

The scheme works by fixing a maximum level of business rates which can be charged for any particular day, of 60% of the gross rates calculated based on the rateable value. If the account is also subject to transitional relief following a revaluation, then the level of film studio relief is adjusted to reflect this.

For example, if transitional relief is awarded which is equivalent to 10% of the gross rates, then film studio relief would be awarded for 30%, bringing the total bill to 60% of the gross rates.

If transitional relief is equivalent to 40% or more of the gross rates, then no film studio relief will be awarded.

The detailed guidance for this scheme is published on GOV.UK Business rates: Film studio relief - local authority guidance - GOV.UK, and the scheme adopted by Dacorum Borough Council will follow this guidance, including any future amendments.

For the avoidance of doubt, that means that this scheme allows for the recalculation of any relief amount awarded, including in prior years, where there is any change to the rateable value of the film studio to which the relief has been awarded. The scheme also provides for calculations known as ‘clawback’, which come into operation if there is a change in rateable value from the level that existed when the scheme was designed.

Film Studio Relief is a scheme which is classed as a subsidy under the Subsidy Control Act 2022. This does not impose any cap of the value of relief which can be awarded, but does mean that each individual relief of more than £100,000 is subject to transparency requirements. Such awards will be added to the national subsidy control database on the Manage UK Subsidies Portal.

Our current estimate is that relief for 2024/25 will be approximately £200k, and for 2025/26 it will increase to circa £1m. This expected increase is due to a reduction in transitional relief on the affected accounts.

Authority to make decisions of this type has been delegated to the Portfolio Holder (Corporate and Commercial) by cabinet decision CA/78/17.

This report covers new business rate relief that the Government has announced for ten years, covering the period 1 April 2024 to 31 March 2034.

The Film Studio Relief Scheme will provide eligible film studios with a 40% reduction on their gross business rates during the ten-year period. This reduction is inclusive of any transitional relief which may apply.

As there are a number of national business rates revaluations scheduled to occur during the span of this relief, the Government may change the relief percentage in the future to keep a similar level of benefit for these studios.

As the scheme is designed for a limited period only, the Government is not making changes to legislation, but instead providing detailed guidance, and asking local authorities to use powers under s47 of the Local Government Finance Act 1988 to set up the scheme. Government will then fully repay the cost of relief awarded in line with their guidance.

The government only released the guidance to this policy on the 20^th February, hence the need for an urgent portfolio holder decision to ensure that this policy can be implemented as part