Businesses and section 114
On 24 January 2024, Birmingham City Council held the Business Ratepayer Briefing.
The briefing invited businesses to hear from the council for an update on the current financial position, funding opportunities, and Business Rates and answer any questions.
I have a contract with the council, or I am owed money for goods and services. Will I be paid?
Contractual commitments will be honoured, and all invoices for work delivered will be paid.
My business is part of a procurement contract. Will this continue?
Yes. Anything which is part of a current contract will continue.
My business needs to invoice the council for ongoing or completed projects. How do I do this?
The way you invoice us has not changed. All contractual agreements will continue.
Will the Enterprise Zone (EZ) continue to support transformation in the city centre?
Our Section 151 Officer has confirmed the EZ sits outside our general fund. This means the EZ can still:
- progress projects
- sign funding agreements
- release funding which has already been approved
Funding decisions still need to follow our spend control processes.
Will the council's major projects, such as Smithfield and Paradise, continue to be delivered?
Yes. We are committed to making sure projects which are important for our long-term growth are delivered.
Will the recently launched Our Future City Plan (OFCP) continue?
Yes. OFCP is still a priority for us. However, some of the strategy's proposals might need to be changed slightly.
My business is applying for a tender on Find it in Birmingham. Will this continue?
If the spend is classed as essential (statutory goods and services), the tendering process will go ahead. The supplier should continue to apply, and the Section 151 Spend Control Board will decide.
I rent premises from Birmingham City council. Will my rent increase?
Your agreement with us may include a rent review clause which explains how the rent can be reviewed. Your rent may also change at the end of your current lease.
Will fees and charges increase for council services such as commercial waste collection, premises licences, and food hygiene inspections?
All sources of income, including fees and charges, are being reviewed as part of the financial recovery plan.
Will parking charges increase, particularly around the city centre?
All sources of income, including fees and charges, are being reviewed as part of the financial recovery plan.
Will the council still be offering grants to help businesses?
We are committed to delivering a £15 million grant programme for small and medium-sized enterprises (SMEs).
This programme offers £5,000 to £100,000 to businesses that want to develop, grow, invest, and create local jobs.
Read more about our West Midlands SME Grant Programme.
If you are looking to invest in energy and resource efficiency, then support is also available through our Net Zero Grant Programme.
This programme offers £5,000 to £100,000 to eligible SMEs.
Read more about our Net Zero Grant Programme.
How do I pay my business rate and/or Business Improvement District (BID) levy?
The section 114 notice does not have any effect on our statutory requirement to bill, collect, and recover business rates and BIDS. You should continue to make payments as detailed on the most recent bill sent to you.
When someone is declared bankrupt, any future payments should be made to the official receiver or trustee in bankruptcy, so why do we continue to pay Birmingham?
The official receiver and trustees in bankruptcy or liquidators are only appointed when individuals or companies enter formal insolvency under the Insolvency Act. This does not apply to local councils.
The section 114 notice is issued under the Local Government Finance Act, which is different to the formal insolvency procedure.
We continue to work as normal, fulfilling our commitment to provide statutory services, including the billing and collection of Council Tax and business rates.
Why should I pay my business rates and/or BID levy?
We must receive the funds to support our recovery plan to continue delivering essential services.
If payments are made as they are due, we will not have to carry out costly reminder and enforcement activities. It also allows us to collect these funds more efficiently.
We collect BID levy payments for the relevant BID company to use.
Will my business rates and/or BID levy go up?
We do not set business rates.
Business rate bills are calculated using:
- the rateable value of the property, which is set by the Valuation Office Agency
- the multiplier, which is set annually by the government
BID payments are calculated using the business rate bill for the property and a percentage multiplier or set levy fee, which is agreed upon by the individual BID at the start of the five-year term.
What are you doing to collect the arrears in business rates and BIDs?
We are using all available resources to recover and enforce debts as efficiently as possible.
We also have an ongoing project to identify new or altered business rate properties so we can include them in the business rate list, bill them, and collect any additional revenue.
Page last updated: 11 March 2024
