Wrthi'n llwytho
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RESOLVED a) That the Council be authorised to enter into the Memorandum of Understanding (MoU) set out in Appendix 1. b) That delegated authority be granted to the Assistant Chief Executive/Director of Place to take all necessary steps to implement the requirements of the MoU. c) That the Celtic Freeport business rate relief scheme, with an effective date of 26 November 2024 until 31 March 2034, be approved.
The following declarations were made: Item 3 - Celtic Freeport Memorandum of Understanding and Celtic Freeport Business Rate Relief Scheme Councillor Tessa Hodgson declared a personal interest by virtue of having a close family member employed by the Milford Haven Port Authority Councillor Marc Tierney declared a personal interest by virtue of being employed by a Member of the Senedd who is a Member of the Welsh Government.
Y penderfyniad fel y'i cofnodwyd
RESOLVED a) That the Council be authorised to enter into the Memorandum of Understanding (MoU) set out in Appendix 1. b) That delegated authority be granted to the Assistant Chief Executive/Director of Place to take all necessary steps to implement the requirements of the MoU. c) That the Celtic Freeport business rate relief scheme, with an effective date of 26 November 2024 until 31 March 2034, be approved.
Cabinet considered a joint report by the Head of Property & Construction and the Director of Resources which sought for the Council to enter into a Memorandum of Understanding (MoU) with government and delivery partners for the operation of the Celtic Freeport, and for the Cabinet to approve the Celtic Freeport business rate relief scheme. Councillor Paul Miller, the Deputy Leader and the Cabinet Member with responsibility for Place, the Region, Climate Change & Rural Affairs, introduced the report and explained that the next stage of the Freeport programme required agreement of governance arrangements and partner roles. Appendix 1 set out the Memorandum of Understanding, and Appendix 2 detailed the business rate relief scheme for new activity within the tax sites, with retained growth (after the dislocation deduction) to be allocated by the Public Funds Committee. He noted that local authorities would determine eligibility, with Welsh Government reimbursing retained rates through the following year’s revenue support grant. He asked how this was being reflected in the Medium?Term Financial Plan. Councillor Paul Miller Moved the Recommendations; Seconded by the Leader. The Director of Resources advised that the retained Non-Domestic Rates (NDR) had not yet been reflected in the Medium?Term Financial Plan, as it would come through the Revenue Support Grant (RSG) as a separately notified and ring?fenced element for the Freeport. Councillor Miller noted this arrangement and queried whether, once rate growth became sufficiently certain, for example, once a development had commenced, it might be possible for the Public Funds Committee to make allocations in advance or leverage anticipated income through borrowing. The Director of Resources confirmed that this may be possible but would require checking the relevant legislation and clarifying whether the Council or the accountable body would hold that responsibility. Councillor Tessa Hodgson asked who sat on the Joint Public Funds Committee and how its membership was determined. Councillor Paul Miller explained that Pembrokeshire’s representatives were himself, the Leader, and Councillor Cameron as Cabinet Member for Finance, and that Neath Port Talbot appointed an equivalent membership comprising its Leader and two Cabinet Members. In response to a further query, he confirmed that the Committee’s meetings were public, noting he would verify the arrangements regarding webcasting. He stated that one meeting had been held to agree indicative seed?capital allocations and that further meetings would take place to approve allocations once full business cases were available, thereafter convening on an ad?hoc basis as funding decisions were required. The Chief Executive confirmed that the Joint Public Funds Committee, as a joint committee of both local authorities, should ordinarily meet in public session, except where the subject matter requires exclusion of the press and public. He further noted the establishment of a Joint Public Funds Scrutiny Committee, intended to scrutinise reports and advice in advance of formal decision?making. He advised that the next meeting of the Public Funds Committee was provisionally scheduled for late June, at which formal seed?capital allocations would be considered, following the earlier indicative allocations made to support submission of the Full Business Case. Councillor Rhys Sinnett noted the complexity of the documentation and referred to the importance of the legal framework underpinning the Freeport. He highlighted the need to manage displacement risk, ensuring that businesses did not relocate into the tax site solely for tax advantages without generating genuine additional growth. He asked whether sufficient staffing and resources were in place to ensure robust checks and balances. The Director of Resources confirmed that checks would rely initially on the Valuation Office Agency to identify changes in rating, followed by business applications and confirmation from the Freeport that all eligibility requirements had been met before any relief was awarded. Councillor Paul Miller added that strict criteria applied and that only businesses aligned with the Freeport’s objectives would qualify. He distinguished this from the 6.4% displacement factor, explaining that the factor accounted for growth that might otherwise have occurred elsewhere, whereas “lifting and shifting” within the region would not qualify for relief. The Assistant Chief Executive further noted that the tax benefits were targeted at additionality, new jobs and new capital investment. Relocating an existing operation solely to access the tax zone would not generally yield benefit, but where relocation enabled growth beyond existing activity, relief would apply only to the genuinely additional element. The vote, undertaken by way of a roll call, was carried. The votes were recorded as follows: For the Motion: Councillors Jon Harvey, Paul Miller, Michelle Bateman, Alistair Cameron, Tessa Hodgson, Rhys Sinnett, Marc Tierney, Jacob Williams and Guy Woodham [9] There were no votes against or abstentions. RESOLVED a) That the Council be authorised to enter into the Memorandum of Understanding (MoU) set out in Appendix 1. b) That delegated authority be granted to the Assistant Chief Executive/Director of Place to take all necessary steps to implement the requirements of the MoU. c) That the Celtic Freeport business rate relief scheme, with an effective date of 26 November 2024 until 31 March 2034, be approved.
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