# The Non-Domestic Rating (Designated Areas) Regulations 2013

S.I. 2013/107 · made 22 January 2013 · revised to 1 April 2017

The purpose of these Regulations is to designate specific areas within which a proportion of the non-domestic rating income is to be calculated in accordance with the Regulations. Such proportions are to be disregarded by each billing authority all or part of whose area falls within the designated area for the purpose of particular calculations made under Schedule 7B to the Local Government Finance Act 1988 (“the 1988 Act”) (local retention of non-domestic rates).

Made under: Local Government Finance Act 1988 (Schedule 7B paragraph 39)

PDFs: Printed copy https://openlegislation.uk/non-domestic-rating-designated-areas-regulations-2013/pdf/uksi_20130107_en.pdf; Explanatory Memorandum https://openlegislation.uk/non-domestic-rating-designated-areas-regulations-2013/pdf/uksiem_20130107_en.pdf

## Introductory text

Rating And Valuation, England
Made 22nd January 2013
Laid before Parliament 24th January 2013
Coming into force 18th February 2013
The Secretary of State for Communities and Local Government in exercise of the powers conferred by paragraph 39 of Schedule 7B to the Local Government Finance Act 1988, makes the following Regulations:
These Regulations are made with the consent of the Treasury in accordance with paragraph 39(13) of Schedule 7B to the Local Government Finance Act 1988.

## 1 Citation and commencement

These Regulations may be cited as the Non-Domestic Rating (Designated Areas) Regulations 2013 and come into force on 18th February 2013.

## 2 Interpretation

In these Regulations—
“the 1988 Act” means the Local Government Finance Act 1988;
“Birmingham City Centre Designated Area” means the area designated in Schedule 1 by reference to the areas bounded externally by the outer edge of the blue line shown on maps 1 to 26;
“designated area” means an area designated by regulation 3 and Schedule 1;
“local list” means a list compiled and maintained in accordance with section 41 of the 1988 Act;
“non-domestic rating income” has the meaning given by Schedule 2;
“period of designation” means—
(a)for the Birmingham City Centre Designated Area, the period of 33 years specified in regulation 4(2);
(b)for any other designated area, the period of 25 years specified in regulation 4(1);
“preceding year” means the year immediately preceding the year for which a calculation under these Regulations is being made;
“relevant billing authority” means a billing authority in England all or part of whose area falls within a designated area;
“small business non-domestic rating multiplier”, in relation to a year, means the small business non-domestic rating multiplier for the year determined under Part 1 of Schedule 7 to the 1988 Act; and
“specified year” means a year falling within the period of designation.

## 3 Designation of areas

The areas referred to in Schedule 1 are designated for the purposes of these Regulations.

## 4 Period of designation

(1) The designations made by regulation 3 and Schedule 1 take effect on 1st April 2013 and , subject to paragraph (2), remain in effect for a period of 25 years beginning with that date.
(2) The designation of the Birmingham City Centre Designated Area has effect for the period of 33 years which comprises—
(a) the period of 25 years specified in paragraph (1); and
(b) a further period of 8 years beginning immediately after the end of the period specified in paragraph (1).

## 5 Calculation of the proportion of non-domestic rating income to be disregarded

(1) Schedule 2 contains rules for the calculation, in relation to each relevant billing authority and for each specified year, of a proportion of the authority’s non-domestic rating income in respect of the designated area or areas within which all or part of the authority’s area falls.
(2) The amount calculated in accordance with Part 1 of Schedule 2 in relation to a relevant billing authority for a specified year in respect of a designated area is to be disregarded for the purposes of the calculations under the following provisions of Schedule 7B to the 1988 Act as those provisions apply to the authority for the year—
(a) paragraph 6 (payments in respect of the central share);
(b) regulations under paragraph 7 (administrative arrangements for payments in respect of the central share);
(c) regulations under paragraph 9 (payments by billing authorities to major precepting authorities);
(d) regulations under paragraph 10 (administrative arrangements for payments by billing authorities to major precepting authorities);
(e) paragraph 13 (calculations following local government finance report);
(f) paragraph 16 (calculations following amending report);
(g) paragraph 23 (calculations of levy payments);
(h) paragraph 26 (calculations of safety net payments);
(i) regulations under paragraph 28 (calculations of payments on account);
(j) paragraph 30 (calculations relating to distribution of remaining balance).

## Signature

We consent to the making of these Regulations
Desmond Swayne
David Evennett
Two of the Lords Commissioners of Her Majesty’s Treasury
16th January 2013
Signed by authority of the Secretary of State for Communities and Local Government
Brandon Lewis
Parliamentary Under Secretary of State
Department for Communities and Local Government
22nd January 2013

## Schedule 1: Local retention of non-domestic rates: designation of areas

## 1 

Each of the areas listed in column 1 of the table in this Schedule is designated by reference to the area or areas bounded externally by the outer edge of the blue line shown on the map or maps specified in column 2 of the table.

## 2 

A reference in this Schedule to a map is to one of the maps numbered 1 to 117 and entitled “Maps referred to in Schedule 1 to the Non-Domestic Rating (Designated Areas) Regulations 2013”, of which prints, signed by a member of the Senior Civil Service in the Department for Communities and Local Government, are deposited and available for inspection at the offices of the Secretary of State for Communities and Local Government and, in relation to each map, at the offices of the relevant billing authority to which the map relates.

## 3 

For the purposes of determining a designated area, where part only of a hereditament is situated within an area shown on a map, the whole of the hereditament is taken to be included within that designated area.
Designated area
(Column 1)
Numbered map
(Column 2)
Baseline figure (see paragraph 3(2) of Schedule 2)
(Column 3)
Birmingham City Centre
1 to 26
3,774,888
Black Country South Staffordshire
117
Nil
Black Country Walsall
27
164,848
Black Country Wolverhampton
28
83,015
Alconbury Enterprise Campus
29
597,001
Newquay Aerohub
30
402,551
Nottingham City
31, 34 and 35
3,847,068
Nottingham Broxtowe
32 and 33
1,050,656
Humber Port Corridor Hull
37
Nil
Humber Port Corridor East Riding
36
Nil
Humber Port Corridor North East Lincolnshire
38
Nil
Humber Super Energy Cluster Hull
39 and 41 to 45
150,463
Humber Super Energy Cluster East Riding
40
91,596
Humber Super Energy Cluster North Lincolnshire
46
914,373
Lancashire Advanced Engineering and Manufacturing South Ribble
47
Nil
Lancashire Advanced Engineering and Manufacturing Ribble Valley
48
1,744,980
Lancashire Advanced Engineering and Manufacturing Fylde
49
1,869,566
Aire Valley Leeds
50
881,475
MIRA Technology Park
51
850,734
Sci-Tech Daresbury
52
31,174
Mersey Waters Liverpool
53
3,434,396
Mersey Waters Wirral
54
2,733
Royal Docks
55
224,767
Manchester Airport City
56 to 60
5,658,084
New Anglia Great Yarmouth
61 and 62
260,529
New Anglia Waveney
63 to 66
Nil
North East Sunderland
67 to 69
133,736
North East Northumberland
70 to 72
11,106
North East Newcastle
73
64,842
North East North Tyneside
74 and 75
516,416
Science Vale UK
76 and 77
1,133,055
Sheffield City Region Sheffield
80, 85 and 87 to 91
1,576,208
Sheffield City Region Barnsley
78
83,533
Sheffield City Region Chesterfield
92 and 93
Nil
Sheffield City Region Rotherham
79, 81 to 84 and 86
315,768
Solent Fareham
94
92,746
Solent Gosport
95
408,435
Harlow
96 and 97
2,754,899
Northampton Waterside
98
3,194,482
Tees Valley Stockton
99 and 102
Nil
Tees Valley Hartlepool
100 and 103
Nil
Tees Valley Redcar and Cleveland
101, 104, 106 and 107
Nil
Tees Valley Middlesbrough
105
Nil
Hereford
108
219,879
West of England
109
12,413,383
Gateshead Development Area
110
1,082,810
Newcastle Development Area
111 to 113
5,598,739
Nottingham Development Area
114
5,489,940
Sheffield Development Area
115
1,443,449
Liverpool City
116
29,424,796

## Schedule 2: Rules for calculation of the amount to be disregarded

### Part 1: Calculation of the proportion of non-domestic rating income to be disregarded for the purpose of calculations under Schedule 7B to the 1988 Act

## 1 

(1) For the purposes of regulation 5, but subject to sub-paragraph (2), the proportion of a relevant billing authority’s non-domestic rating income for a specified year in respect of a designated area within which all or part of the authority’s area falls is the difference between—
(a) the amount of the authority’s non-domestic rating income for that year in respect of that area calculated in accordance with Part 2; and
(b) the amount calculated in relation to the authority for that year in respect of that area in accordance with Part 3.
(2) Where the amount calculated in accordance with Part 3 is greater than or equal to the amount calculated in accordance with Part 2, the proportion for the purposes of regulation 5 is zero.

### Part 2: Calculation of non-domestic rating income

## 2 

(1) A relevant billing authority’s non-domestic rating income in respect of a designated area for a specified year is the amount calculated in accordance with the formula—
( A−B )+( C−D )−E+F+G−H where—
A is the total of the amounts credited to the authority’s collection fund income and expenditure account in the 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 hereditaments situated in the designated area;
B is the total of the amounts charged to the authority’s collection fund income and expenditure account in the 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 hereditaments situated in the designated area;
C is the amount of any transitional protection payments under paragraph 33(1) of Schedule 7B to the 1988 Act made to the authority in the year in respect of hereditaments situated in the designated area;
D is the amount of any transitional protection payments under paragraph 33(1) of Schedule 7B to the 1988 Act made by the authority in the year in respect of hereditaments situated in the designated area;
E is the total of the amounts credited to the authority’s collection fund income and expenditure account in the 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 hereditaments situated in the designated area to which sub-paragraph (2) applies;
F is the total of the amounts charged to the authority’s collection fund income and expenditure account in the 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 hereditaments situated in the designated area to which sub-paragraph (2) applies;
G is the amount of transitional protection payments under paragraph 33(1) of Schedule 7B to the 1988 Act made by the authority in the year in respect of hereditaments situated in the designated area to which sub-paragraph (2) applies;
H is the amount of transitional protection payments under paragraph 33(1) of Schedule 7B to the 1988 Act made to the authority in the year in respect of hereditaments situated in the designated area to which sub-paragraph (2) applies.
(2) This sub-paragraph applies to a hereditament which—
(a) is to be treated as one hereditament by virtue of regulations under section 64(3)(b) of the 1988 Act; and
(b) would have constituted three or more separate hereditaments had regulations under section 64(3)(b) not been made.
(3) In this paragraph, references to an authority’s collection fund income and expenditure account is a reference to a revenue account to which, in accordance with proper practices, are credited or charged amounts in respect of the authority’s income or expenditure relating to sums paid or to be paid into or payments met or to be met from the authority’s collection fund.

### Part 3: Calculation of the amount deducted from non-domestic rating income

## 3 

(1) If the specified year is not a year in which local lists must be compiled, the amount to be calculated for the purposes of paragraph 1(1)(b) in relation to the authority for the year in respect of the area is that described in sub-paragraph (2) or (3) (as the case may be).
(2) For the year beginning on 1st April 2013, that amount is calculated in accordance with the formula—
J× K 2 K 1 where—
J is the figure provided in column 3 of the table in Schedule 1 in relation to the designated area;
K2 is the small business non-domestic rating multiplier for the year beginning on 1st April 2013; and
K1 is the small business non-domestic rating multiplier for the year beginning on 1st April 2012.
(3) For the year beginning on 1st April 2014, and for a subsequent specified year which is not a year in which local lists must be compiled, that amount is calculated in accordance with the formula—
L× M 2 M 1 where—
L is the amount calculated in accordance with sub-paragraph (2), this sub-paragraph or paragraph 4(2), as the case may be, for the preceding year;
M2 is the small business non-domestic rating multiplier for the specified year concerned; and
M1 is the small business non-domestic rating multiplier for the preceding year.

## 4 

(1) If the specified year is a year in which local lists must be compiled (“the revaluation year”), the amount to be calculated for the purposes of paragraph 1(1)(b) in relation to the authority for the year in respect of the area is that described in sub-paragraph (2).
(2) That amount is the amount calculated in accordance with the formula—
N×( P× R 2 Q× R 1 ) where—
N is the amount calculated in accordance with paragraph 3(2) or 3(3), as the case may be, for the preceding year;
P is the aggregate rateable values shown in the relevant billing authority’s local list for 1st April in the revaluation year for the hereditaments, other than those hereditaments to which paragraph 2(2) applies, falling within the designated area;
Q is the aggregate rateable values shown in the relevant billing authority’s local list for 31st March in the preceding year for the hereditaments, other than those hereditaments to which paragraph 2(2) applies, falling within the designated area;
R2 is the small business non-domestic rating multiplier for the revaluation year;
R1 is the small business non-domestic rating multiplier for the preceding year.
(3) For the purposes of this paragraph, the rateable value of a hereditament shown in the relevant billing authority’s local list for 31st March in the preceding year is to be taken to be the rateable value that would have been shown in that list for that day had the circumstances relating to that hereditament been as they were on 1st April in the revaluation year.

## Explanatory note

(This note is not part of the Regulations)
The purpose of these Regulations is to designate specific areas within which a proportion of the non-domestic rating income is to be calculated in accordance with the Regulations. Such proportions are to be disregarded by each billing authority all or part of whose area falls within the designated area for the purpose of particular calculations made under Schedule 7B to the Local Government Finance Act 1988 (“the 1988 Act”) (local retention of non-domestic rates).
Regulation 3 and Schedule 1 designate the areas in relation to which a proportion of the non-domestic rating income is to be disregarded from certain calculations. The designations are made by reference to maps which are available for inspection at the office of the Secretary of State for Communities and Local Government or the office of the billing authority in whose area the designated area falls.
Regulation 4 specifies that the designations take effect on the 1st April 2013, and have effect for a period of 25 years. The effect of specifying the years is to trigger paragraph 39(9) of Schedule 7B to the 1988 Act, which restricts the type of amendments that may be made to the Regulations and prevents the revocation of the Regulations until after the end of the 25 year period.
Regulation 5 and Schedule 2 provide for the calculation of the proportion of non-domestic rating income that is to be disregarded. The starting point is the definition of non-domestic rating income which is essentially the amounts payable to the authority under sections 43 and 45 of the 1988 Act in respect of hereditaments situated in the designated area, subject to a number of adjustments. The non-domestic rating income is then compared to a baseline figure representing existing non-domestic rating income in the area, which is to be uplifted each year, to produce an amount representing growth in income in the area. The calculation is to be made separately for each billing authority in respect of each of its designated areas.
No separate impact assessment has been prepared for these Regulations, but the impact assessment prepared for the Local Government Finance Act 2012 is relevant:
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/8470/2054063.pdf

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Source: https://www.legislation.gov.uk/uksi/2013/107 (the official version)
Page: https://openlegislation.uk/non-domestic-rating-designated-areas-regulations-2013
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.