What progress it has made in relation to the business rates incentivisation scheme.

The Business Rates Incentivisation Scheme (BRIS) was introduced from 1 April 2012 to incentivise councils to maximise their existing business rates income and growing their tax base by providing councils with the potential to retain 50 per cent of any increase in business rates income over and above agreed targets for 2012-13 and future years.
The jointly agreed BRIS guidance sets out clearly that either central or local government can request a change in the annual BRIS targets in the event of a material change in the predicted non-domestic rates income. The 2012-13 mid-year returns from local authorities identified that the loss from revaluation appeals was likely to be significantly lower than predicted and also indicated an increased cost of mandatory rates relief. The Scottish Government considered the net increase in income from these factors as very significant and proposed a revision to the 2012-13 BRIS targets. Without changing the targets councils would have stood to gain a significant windfall without either collecting or attracting new business rates income.
COSLA leaders took the decision in May 2013 that they did not want to consider the review of the 2012-13 BRIS targets until the final non-domestic rates audited figures for 2012-13 became available in March 2014. I made it clear at that time that until the 2012-13 targets had been agreed I would not be publishing any future years’ targets.
COSLA leaders reconsidered their position at their 25 April 2014 meeting, following receipt of the audited returns, but did not consider that a significant event had occurred and as a result they were unable to agree the revised 2012-13 targets.
I have agreed to meet with COSLA President Councillor David O’Neill to discuss a possible joint review of the Scheme and the arrangements for taking that forward. This meeting has been arranged for 4 June 2014 and the outcome will help inform what action is required in relation to the 2012-13 targets, including any payments to councils, and a review of the future of BRIS to ensure lessons are learnt from the first year of operation.