HL Deb 01 December 1992 vol 540 cc89-91WA
Viscount Davidson

asked Her Majesty's Government:

What will be the distributable amount of non-domestic rates for 1993/94 and if they will explain the basis of their calculations.

The Parliamentary Under-Secretary of State, Department of the Environment (Lord Strathclyde)

My right honourable friend the Secretary of State for the Environment announced on 12th November that the non-domestic rate multiplier for 1993/94 will rise by 3.5 per cent. from its 1992/93 level to 0.416. The distributable amount of non-domestic rates based on this poundage will be £11,559 million. This includes an Exchequer payment of £992 million into the non-domestic rates pool to compensate local authorities for the shortfall in 1992/93 and 1993/94 which would otherwise occur as a result of the Non-Domestic Rating Act 1992. The basis of the calculation is set out in the table.

Calculation of Distributable Amount 1993/94 £ million
1. Income from Local Lists in 1993/94
(a) Total local list RV x multiplier (£31,500m x 0.416) 13,104
(b) Less transitional decrease (499)
(c) Less reliefs on empty and partially empty properties (1,213)
(d) Less reliefs to charities (330)
(e) Less discretionary reliefs (19)
(f) Less losses on collection (200)
(g) Less appeals in respect of previous years and other rating adjustments (541)
Sub-Total 10,302
2. Income from Central List in 1993/94
Total Central list RV x multiplier (and after transition) (£2,714m x 0.416) 1,126

1 Includes 75 licences which entitle holders to fish with either a drift or fixed T net.

2 Total number of net licences issued. Many of the licence holders will not have used drift nets.

3 Includes licences for 20 coracle nets, four trammel nets and two sling nets.

Calculation of Distributable Amount 1993/94 £ million
3. Income from Crown Contributions in Aid in 1993/94
Net Crown yield (after transition) 455
Net yield for 1993/94 (Items 1, 2 and 3) 11,883
4. Reductions to Contributions
(a) Offset for City of London (25)
(b) Allowance for local authorities' collection costs (66)
Net contributions for 1993/94 (1, 2 and 3 less 4) 11,792
5. Outturn Adjustments for previous years
(a) Less adjustments for empty property relief in respect of 1992/93 and previous years (606)
(b) Less other outturn adjustments in respect of 1992/93 and previous years (549)
Sub-total of net contributions for 1993/94 less outturn 10,637
6. Exchequer Contributions to compensate for reductions in revenue resulting from the provisions of the Non-Domestic Rating Act 1992 (the 1992 Act)
(a) Add income foregone in 1992/93 due to revised transitional arrangements 400
(b) Add income foregone in 1993/94 520
(c) Add Addition to cost of collection allowance in 1992/93 and 1993/94 2
Sub-total 922
Total NNDR Distributable Amount for 1993/94 11,559


1. Item 1(a): the estimated rateable value total represents the values of non-domestic hereditaments on local rating lists.

2. Item 1(b): the adjustment includes the estimated amount of rates that will not be recouped locally due to the revised transitional arrangements under the provisions of the 1992 Act.

3. Item 1(e): discretional relief granted to charities, non-profit making organisations and for other reasons.

4. Item 1(g): net adjustments in respect of appeals and other amendments to the rating list affecting liability for previous years' rates settled in 1993/94.

5. Item 2: the rateable value of non-domestic hereditaments on the central rating list after adjustments for appeals.

6. Item 4(a): a preliminary estimate of the reduction in the amount which the City of London will not be required to pay into the non-domestic rating pool on account of the local rate in the City. It is the amount which w ill be retained by the authority to meet its expenditure.

7. Item 4(b): the allowance for the costs incurred by local authorities in collecting the non-domestic rates from ratepayers.

8. Item 5(a): adjustments based on estimated mandatory reliefs for empty property in 1992/93 and earlier years not taken into account in the calculation of the distributable amount for 1992/93.

9. Item 6(a) and 6(b): the contribution from central government to offset the amount of the Secretary of State's estimate of income foregone arising from the provisions of the Non-Domestic Rating Act 1992.

10. Item 6(c): estimated additional sum for local authorities' costs of collection in 1992/93 and 1993/94 resulting from the provisions of the 1992 Act.