Agenda item

Notice of Motion

This Council notes:


1.            Cardiff Council raises nearly £200 million a year in business rates (NNDR) paid into a central pool from which a portion is returned to Cardiff.

2.            In 2015/16 and 2016/17 Cardiff has “lost” an average of £86million per year because of the pool and a similar amount is projected for 2017/18.

3.            Without action, the potential loss of Cardiff business rates over this 5-year Council term could be £450million. No other Council or major City in the UK loses such a high proportion of the NNDR which it raises.

This Council further notes that:


1.            In addition to the associated costs of being the Capital City of Wales, Cardiff plays host to about 80 thousand daily commuters who work in Cardiff but pay Council Tax elsewhere.

2.            The revenue support grant (RSG) allocates Cardiff £313 million in the current year which, on a per capita basis is £860 - putting Cardiff 20th out of 22 Welsh councils. It could be seen that some of this grant is a return of the NNDR ‘lost’ to the pool.

3.            Cardiff Council is investing capital and officer time in developing our city which will achieve and increase the level of NNDR received, yet it is manifestly unfair that the financial benefit of this investment is taken away from Cardiff.

This Council calls on the Cabinet to:


Develop a key strategy for a negotiation with the Welsh Assembly Government, with the aim that Cardiff Council receives a much greater share of the NNDR it generates in 2018/19 and beyond. This should be achieved without accepting a compensating reduction in the RSG.


Proposed by:    Councillor Rod McKerlich 


Seconded by:   Councillor Thomas Parkhill