# The Telecommunications Industry (Rateable Values) Order 1989, Note: Explanatory note


(This note is not part of the Order)
Under paragraph 3(2) of Schedule 6 to the Local Government Finance Act 1988, the Secretary of State may by order provide in the case of non-domestic hereditaments to be shown in the central rating lists for England and Wales that the normal rules of valuation for rating contained in paragraphs 2 to 2B of that Schedule shall not apply, and instead their rateable value shall be such as is specified, or determined in accordance with rules set out, in the order.
Telecommunications hereditaments occupied (or, if unoccupied, owned) by British Telecommunications plc (“British Telecom”) and Mercury Communications Limited (“Mercury”) are required to be shown in the central rating lists by virtue of the Central Rating Lists Regulations 1989 (S.I. 1989/2263). This Order provides (article 4) that paragraphs 2 to 2B are not to apply to such hereditaments, and that their rateable value is to be as specified in or determined under the rules set out in the Order.
Part II (article 5) specifies rateable values of Mercury’s telecommunications hereditaments in England and in Wales up to and including the year 1994-5, adjusted by reference to changes in the length of Mercury’s cable for years after 1990-1.
Part III (article 6) specifies the rateable value in the year 1990-1 of British Telecom’s telecommunications hereditaments in England, and provides for its variation in subsequent years in accordance with a standard formula, which takes account of changes in the number of distribution points in England and Wales.
Part IV provides for determination of the rateable values of British Telecom’s telecommunications hereditaments in Wales. Article 8 provides that in 1990-1 their rateable value is to be £6,427,138 divided by the non-domestic rating multiplier applicable for that year in relation to Wales under Schedule 7 to the Act. In subsequent years this amount is progressively reduced, and adjusted as provided in Part V by reference to changes in the number of distribution points in England and Wales, until the amount produced by this formula equals or is less than the amount produced in respect of that year by adjusting the amount of £13,190,000 by reference to such changes. Thereafter (article 11) the rateable value is calculated each year by making a similar adjustment.

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Source: https://www.legislation.gov.uk/uksi/1989/2478/note (the official version)
Page: https://openlegislation.uk/telecommunications-industry-rateable-values-order-1989/note
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.