Explanatory note

These Regulations amend the Non-Domestic Rating (Levy and Safety Net) Regulations 2013 (S.I. 2013/737) (“the 2013 Regulations”). The 2013 Regulations are part of the system for the local retention of non-domestic rates established by Schedule 7B to the Local Government Finance Act 1988. They make provision for calculating whether the Secretary of State is required to make a safety net payment to a billing authority or a major precepting authority and whether such an authority is required to make a levy payment to the Secretary of State.

Schedule 1 to the 2013 Regulations prescribes how the retained rates income for each billing authority and major precepting authority is to be calculated for the purposes of levy and safety net calculations.

Regulation 3 of these Regulations amends Schedule 1 to the 2013 Regulations to provide, in relation to the financial year beginning on 1st April 2025, for the calculation of retained rates income for authorities in areas where 100% of business rates are retained locally, as well as the Greater London Authority.

In calculating its retained rates income for the financial year beginning on 1st April 2025, the amendments made to Schedule 1 by regulation 3 of these Regulations require an authority to include in its calculations amounts of rates relief awarded in accordance with guidance issued by the Secretary of State. Copies of the guidance are available online, as indicated in the footnotes to these Regulations. Hard copies of the guidance can be obtained free of charge by writing to the Ministry of Housing, Communities and Local Government, 2 Marsham Street, Westminster, London, SW1P 4DF.

Schedule 6 to the 2013 Regulations makes provision for the business rates baseline and baseline funding level (and other associated values for the calculation of retained rates income) for the financial year beginning on 1st April 2021 in respect of new local authorities established on that date.

Regulation 4 of these Regulations amends Schedule 6 to the 2013 Regulations to correct an error contained in the Non-Domestic Rating (Levy and Safety Net) (Amendment) Regulations 2022 (“the 2022 Regulations”) in respect of the retained rates income calculations for North Northamptonshire. These Regulations are therefore being issued free of charge to known recipients of the 2022 Regulations.

An impact assessment has not been produced for this instrument because it amends an existing local tax regime. Publication of a full impact assessment is not necessary for such legislation.