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The Non-Domestic Rating (Levy and Safety Net) (Amendment) Regulations 2014

Draft. This instrument was laid in draft and may differ from the one made. Look for the made version under its title.

Draft 2014, ISBN 9780111108819

Original text. legislation.gov.uk does not revise statutory instruments, so later amendments are not shown here. Changes made to it are listed under each provision when known.

Draft Regulations laid before Parliament under section 143(9D) of the Local Government Finance Act 1988, for approval by resolution of each House of Parliament.

Rating And Valuation, England

Made 2014

Coming into force in accordance with regulation 1

The Secretary of State, in exercise of the powers conferred by section 143(1) and (2) of, and paragraphs 22, 25 and 37(1) and (2) of Schedule 7B to, the Local Government Finance Act 1988f1, makes the following Regulations:

In accordance with section 143(9D)f2 of that Act, a draft of this instrument was laid before Parliament and approved by a resolution of each House of Parliament.

Annotations to the whole text

Footnotes

f1

1988 c.41. Schedule 7B was inserted into the Local Government Finance Act 1988 by section 1 of, and Schedule 1 to, the Local Government Finance Act 2012 (c.17).

f2

Section 143(9D) was inserted by section 1 of the Local Government Finance Act 2012.

Contents

  1. 1Citation and commencement
  2. 2Amendment to the Non-Domestic Rating (Levy and Safety Net) Regulations 2013
  3. 3Amendment to the Non-Domestic Rating (Levy and Safety Net) Regulations 2013
  4. 4Amendment to the Non-Domestic Rating (Levy and Safety Net) Regulations 2013
  5. 5Amendment to the Non-Domestic Rating (Levy and Safety Net) Regulations 2013
  6. 6Amendment to the Non-Domestic Rating (Levy and Safety Net) Regulations 2013
  7. 7Amendment to the Non-Domestic Rating (Levy and Safety Net) Regulations 2013
  8. 8Amendment to the Non-Domestic Rating (Levy and Safety Net) Regulations 2013
  9. 9Amendment to the Non-Domestic Rating (Levy and Safety Net) Regulations 2013
  10. 10Amendment to the Non-Domestic Rating (Levy and Safety Net) Regulations 2013
  11. Signature
  12. Explanatory note

1Citation and commencement

These Regulations may be cited as the Non-Domestic Rating (Levy and Safety Net) (Amendment) Regulations 2014 and come into force on the day after the day on which they are made.

2Amendment to the Non-Domestic Rating (Levy and Safety Net) Regulations 2013

The Non-Domestic Rating (Levy and Safety Net) Regulations 2013f1 are amended as follows.

3Amendment to the Non-Domestic Rating (Levy and Safety Net) Regulations 2013

In regulation 5 (business rates baseline and baseline funding level) after paragraph (3) insert—

“(4)

In the case of an authority which is a pool of authorities—

(a)

the business rates baseline of the authority is to be the sum of the individual business rates baselines of the authorities that comprise the pool; and

(b)

the baseline funding level for the authority for a year is to be the sum of the individual baseline funding levels for the year of the authorities that comprise the pool.”.

4Amendment to the Non-Domestic Rating (Levy and Safety Net) Regulations 2013

For the formula in paragraph 1(1) of Schedule 1 (calculation of retained rates income for billing authorities) substitute—

“”

K( L+N−M−O+T )+( P−Q )

5Amendment to the Non-Domestic Rating (Levy and Safety Net) Regulations 2013

In paragraph 1(1) of Schedule 1—

(1)

Omit the “and” at the end of the definition of “P”; and

(2)

After the definition of “Q” insert—

“and

T is the amount calculated in accordance with sub-paragraph (4A) in respect of the years commencing on 1st April 2013 and 1st April 2014 and in respect of any other year is zero.”

6Amendment to the Non-Domestic Rating (Levy and Safety Net) Regulations 2013

For paragraph 1(4)(d) of Schedule 1 substitute—

“(d)

the difference between the amount calculated in accordance with sub-paragraph (3) and the amount which would be so calculated if a determination under section 47 of the 1988 Act were taken into account where the determination relates to a Case A or Case B hereditament within the meaning of paragraph 1 of Schedule 2 to the Non-Domestic Rating (Rates Retention) Regulations 2013f1 and the conditions in paragraph 1(2) of that Schedule are met.”.

7Amendment to the Non-Domestic Rating (Levy and Safety Net) Regulations 2013

After paragraph 1(4) of Schedule 1 insert—

“(4A)

The amount calculated in accordance with this sub-paragraph is 50% of the amount which is the difference between—

(a)
(i)

the total of the amounts credited to the billing authority’s collection fund income and expenditure account in the specified year in accordance with proper practices in respect of non-domestic rates payable under sections 43 and 45 of the 1988 Act in respect of a day in that year; less

(ii)

the total of the amounts charged to the billing authority’s collection fund income and expenditure account in the specified year in accordance with proper practices in respect of non-domestic rates payable under sections 43 and 45 of the 1988 Act in respect of a day in that year; and

(b)

the amount that would have been calculated under paragraph (a) if section 43(4A) to (4D) of the 1988 Actf1 were omitted.”.

8Amendment to the Non-Domestic Rating (Levy and Safety Net) Regulations 2013

For the formula in paragraph 2 of Schedule 1 (calculation of retained rates income for major precepting authorities) substitute—

“”

S( R+U )+( P−Q )

9Amendment to the Non-Domestic Rating (Levy and Safety Net) Regulations 2013

In paragraph 2 of Schedule 1—

(a)

omit the “and” at the end of the definition of “P”; and

(b)

after the definition of “Q” insert—

“and

U is, in respect of the years commencing on 1st April 2013 and 1st April 2014, the sum of the amounts calculated in accordance with paragraph 1(4A) for each of the billing authorities that is required to make payments to the major precepting authority for the relevant year under Part 4 of Schedule 7B to the 1988 Act, and in respect of any other year is zero.”.

10Amendment to the Non-Domestic Rating (Levy and Safety Net) Regulations 2013

In the table in Schedule 2 (table of authorities, business rates baselines and baseline funding levels) omit from “The pool of authorities designated as-” to the end of the table.

Signature

Signed by authority of the Secretary of State for Communities and Local Government

Name

Parliamentary Under Secretary of State

Department for Communities and Local Government

Date

Explanatory note

(This note is not part of the Regulations)

These Regulations amend the Non-domestic Rating (Levy and Safety Net) Regulations 2013 (“the Levy & Safety Net Regulations”).

The Levy and Safety Net Regulations are part of the system of local retention of non-domestic rates, established by Schedule 7B to the Local Government Finance Act 1988 (“the rates retention system”). They make provision for calculating whether the Secretary of State is required to make a safety net payment to an authority and whether an authority is required to make a levy payment to the Secretary of State. Levy and safety net payments are calculated by reference to an authority’s non-domestic rating income and its “baseline funding level” and “business rates baseline”.

Under the rates retention system, the Secretary of State may designate groups of authorities as pools. A pool of authorities is treated as a single authority for the purpose of levy and safety net calculations. Regulation 3 amends the Levy and Safety Net regulations to specify how the business rates baseline and baseline funding level of pools is to be calculated, allowing pools to be removed from the table in Schedule 2 (regulation 10).

Regulations 4 to 9 make a number of changes to the calculation of retained rates income to ensure proper treatment of certain rate reliefs.

A full impact assessment has not been produced for this instrument as no impact on the private or voluntary sectors is foreseen.