# The Non-Domestic Rating (Rates Retention) and (Levy and Safety Net) (Amendment) Regulations 2017, Note: Explanatory note


(This note is not part of the Regulations)
These Regulations amend the Non-Domestic Rating (Rates Retention) Regulations 2013 (S.I. 2013/452) (“the Rates Retention Regulations”) and the Non-Domestic Rating (Levy and Safety Net) Regulations 2013 (S.I. 2013/737) (“the Levy and Safety Net Regulations) to provide for—
(a) changes to the calculation of the individual levy rate for all local authorities to reflect the non-domestic rating revaluation which has effect on 1 April 2017; and
(b) changes to the administration of the rates retention scheme, including the calculation of levy and safety net payments, to give effect to the Government’s decision to create, from 1st April 2017, pilot areas in which authorities will retain 100% of locally raised non-domestic rates.
The pilot areas in which authorities retain 100% of locally raised non-domestic rates are Greater Manchester, Liverpool City Region, West Midlands, the West of England and Cornwall (“100% pilot areas”). The amendments also increase the Greater London Authority’s (GLA) share of non-domestic rating income; and make a corresponding reduction in the central share.
Amendments to the Rates Retention Regulations
Regulation 3 amends regulation 3 of the Rates Retention Regulations to require billing authorities in 100% pilot areas to estimate amounts specified in Schedule 2 and to notify the Secretary of State and any relevant precepting authority of those amounts.
Regulation 4 amends regulation 4 of those Regulations to provide that billing authorities in 100% pilot areas are not required to make a central share payment to the Secretary of State.
Regulation 5 amends regulation 5 of those Regulations to change the relevant precepting authority shares for the Greater London Authority and the West of England Combined Authority.
Regulation 6 consequentially amends regulation 6 of those Regulations to reflect the insertion of Schedule 2A by S.I. 2016/1268.
Regulation 7 amends regulation 11 of those Regulations to change the percentage shares for Greater London.
Regulation 8 amends Schedule 2A to those Regulations to provide that it does not apply to billing authorities in Greater Manchester from 1st April 2017 when that becomes a 100% pilot area.
Regulation 9 consequentially amends Schedule 3 to those Regulations to reflect the changes in percentage shares for billing authorities in 100% pilot areas.
Regulation 10 consequentially amends Schedule 4 to those Regulations to provide that the distribution of surpluses and deficits in the Collection Fund reflects the changes to the central and local shares in Greater London and in the 100% pilot areas.
Regulation 11 inserts Schedule 5 to those Regulations.
Amendments to the Levy and Safety Net Regulations
Regulation 13 amends regulation 5 of the Levy and Safety Net Regulations to change the calculation of the baseline funding level for all local authorities in England.
Regulation 14 amends regulation 6 of those Regulations to change the individual levy rate for all local authorities in England. The amendments provide that some authorities in pilot areas have an individual levy rate of zero (as agreed with the authorities as part of their pilot agreements).
Regulation 15 amends Schedule 1 to those Regulations to change the calculation of “retained rates income” for billing authorities in 100% pilot areas, with the effect that safety net payments for such authorities continue to be calculated as if the authorities were still operating under the 50% rates retention scheme (as agreed with the authorities as part of their pilot agreements).
Regulation 16 inserts Schedule 3 to those 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.

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Source: https://www.legislation.gov.uk/ukdsi/2017/9780111154540/note (the official version)
Page: https://openlegislation.uk/draft-non-domestic-rating-rates-retention-and-levy-and-safety-net-amendment-regulations-2017/note
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.