The Harrow Business Consultative Panel met on Monday 25 January 2021, with discussions focusing on the council's budget, support for local businesses, and the impact of the pandemic. The meeting was attended by Councillors Kiran Ramchandani, Susan Hall, Jeff Anderson, Norman Stevenson (Portfolio Holder for Business, Employment & Property), and Bharat Thakker.

Council Budget and Financial Position

Councillor Susan Hall raised concerns about the council's financial situation, questioning the cost of climate change officers and a Black Lives Matter advisor. It was stated that £150,000 has been allocated for climate change work, with an officer dedicated to this for a period. For Black Lives Matter initiatives, there is currently no specific provision in the draft budget, but staff within the policy team are undertaking related work, and a small budget is being finalised.

Regarding contingencies and reserves, it was clarified that there is an ongoing contingency of £1.248 million in the revenue account for unforeseen items. The draft budget clearly outlines the reserves and how they have been used to balance the budget, with the aim of reducing the amount drawn from reserves to under £1 million in the final budget.

Commercial Investment Strategy

The council's commercial investment strategy was discussed, with clarification sought on commercial property investment and income generation. The council has purchased properties but has not acquired any for about 18 months. One property, King's House, has vacant space which may impact the Medium Term Financial Strategy (MTFS) saving target. The plan to purchase more investment properties with a £100 million allocation in the capital programme has been halted due to the difficulty in finding properties that meet the required return criteria. The expected £2.5 million return from this strategy has been removed from the draft capital programme.

Council Tax Collection

Despite the ongoing pandemic, the council's council tax collection rate has fared better than many other London boroughs. Even without instigating court action, the council has maintained a collection rate of approximately 98%, with arrears well-provided for and little risk of loss. The budget is fully supported, with minimal loss to the tax base, although increased Council Tax Support (CTS) cases have incurred additional costs.

Business Support and Engagement

A significant portion of the meeting was dedicated to discussing support for local businesses and the challenges of engaging them with the panel. Councillor Hall expressed disappointment at the lack of business representation at the meeting, a sentiment echoed by Councillor Norman Stevenson, who noted that while the council's economic development team, led by Mark, does good work communicating with businesses, this panel meeting is a missed opportunity for direct engagement.

Mark, from the economic development team, highlighted that over the past 12 months, the borough has secured over £2 million in external funding for initiatives such as retrofitting schemes and decarbonisation projects, which will significantly impact carbon emissions and fuel poverty. He also mentioned that Louise Baxter, representing 200 businesses in the commercial heartlands, was present, though unable to participate directly due to technical issues.

The council has implemented several measures to support businesses, including:

• Disseminating approximately £50 million in government grants.
• Working with the Greater London Authority (GLA) on the Reopening High Streets Fund to ensure COVID-19 secure trading environments.
• Supporting a business advice helpline through West London Business.
• Providing advice and guidance through the London Business Partnership to help businesses secure funding, loans, and grants, and to pivot their operations.
• Implementing the Additional Restrictions Grant policy to support businesses in trading online, particularly those lacking digital skills.
• Establishing the Harrow Basket online directory for local businesses.
• Exploring additional funding from recent government disbursements to further support businesses.
• Acting as a gateway for the Department for Work and Pensions' Kickstart programme, facilitating placements for young people.

Fern, also from the council's finance team, detailed the substantial financial support provided to businesses:

• Approximately £42 million in the first lockdown.
• £1.93 million from October to December for recent restrictions, supporting around 400 businesses.
• A forthcoming 42-day secondary lockdown grant, with payments of up to £9,000 per property for businesses mandated to close, expected to be distributed by the end of February. This is anticipated to be around £7-8 million.
• An additional £5,000 for every pub in Harrow, on top of the statutory £1,000.
• Additional payments from the restrictions grant in March and June for businesses that received the local restrictions support grant between October and December.
• A recovery strategy allowing for deferred business rate payments into the next year for businesses facing financial difficulties.

Overall, the council anticipates providing between £50-55 million in direct support to businesses, which is comparable to the £56 million net in gross business rates normally collected. This figure is further increased by the 100% government retail relief provided to every business-facing retail business, equating to an additional £30 million. This brings the total support to businesses to over £85 million between last year and the current year.

Impact of Business Closures

Councillor Hall raised concerns about the impending closure of Debenhams in Harrow and its potential impact on smaller businesses in the vicinity. Mark acknowledged the difficulty in predicting the exact impact, especially given the current business restrictions. He mentioned investment from the GLA in Green Hill Place, opposite Debenhams, which includes kiosks for small traders, and noted significant interest from businesses wanting to occupy them. He also stated that the town centre has shown resilience due to increased local residency from housing regeneration.

Business Rates Trends

Andrew Drax, representing West London Business, inquired about trends in local business rates. It was explained that there are several trends affecting the tax base:

• Lower collection rates due to the pandemic, necessitating payment deferrals.
• Permitted development, which has historically led to a decrease in Harrow's tax base year on year.
• A potential for reductions in office and retail space from the Valuation Office Agency due to the pandemic's impact.

These are national risks, with permitted development being more specific to Harrow. The council has made provisions for these risks, including the non-materialisation of the London pool this year.

In terms of benchmarking, Harrow's business rate collection is performing well, partly due to a lower overall taxation amount compared to other authorities. While sympathetic to businesses, the council stressed the necessity of collecting business rates to balance the books.

Technical Issues and Participation

The meeting experienced technical difficulties at the beginning, preventing some registered business representatives, including Andrew Bakers from West London Business and Lou Baxter, from participating fully. A dial-in number was provided via chat to allow for participation. Later in the meeting, it was confirmed that Andrew Bakers, Lou Baxter, Mandy Panassari (representing businesses on Pinner Road), and Manjik Panassari had joined and could view the proceedings.

Closing Remarks

Councillor Hall expressed disappointment at the low business attendance but acknowledged that the circumstances of the lockdown likely contributed to this. Louise, from the Business Improvement District (BID), thanked the council for their hard work throughout the pandemic, acknowledging the difficult circumstances and expressing confidence that Harrow is still performing well. Councillor Norman Stevenson also commended Louise for her efforts in supporting businesses in the town centre. The meeting concluded with thanks to all attendees for their contributions and attendance.