Local Government Finance (Hansard, 2 December 1993)

§ Mr. Curry

As my right hon. Friend announced in his reply to the hon. Member for Cambridgeshire, South-West (Sir A. Grant) on 30 November 1993, at column496, the 653W distributable amount of non-domestic rates for 1994–95 will be £10,685 million. This is based on a non-domestic rate multiplier of 0.423 and includes an allowance of £464 million for an Exchequer payment to the non-domestic rates pool to compensate for the shortfall which would otherwise occur as a result of the Non-Domestic Rating Acts 1992 and 1993. The basis of th[...] calculation is set out in the table:

Calculation of distributable amount 1994–95
	£ million
1. Income from Local Lists in 1994–95
Total Local List RV x multiplier (£29,745x0.423)	12,582
(i) Reliefs
(a) Less transitional decrease	(487)
(b) Less reliefs on (i) empty properties	(1,280)
(ii) partially empty properties	(18)
(c) Less reliefs to charities	(353)
(d) Less discretionary reliefs	(19)
Net Yield	10,425
(ii) Collection Costs/Reductions to Contributions
(a) Less costs of collection	(70)
(b) Less losses on collection	(220)
(c) Less offset for City of London	(8)
Contribution in respect of year	10,147
(iii) Adjustments and Additions
(a) Less Net Repayments and interest	(670)
(b) Less outturn adjustments in respect of prior years	(875)
Net Local Contribution	8,602
2. Income from Central List in 1994–95
Total Central List RVxmultiplier (and after transition)=(2,672mx0.423)	1,130
3. Income from Crown Contributions in Aid in 1994–95
(a) Add Net Crown Yield (after transition)	463
(b) Less relief	(7)
(c) Add Metropolitan Police contribution	33
Net Crown yield	489
Total NDR Yield (1+2+3)	10,221
4. Exchequer Contributions
(a) Add income foregone in 1993–94 due to revised transitional arrangements	37
(b) Add income foregone in 1994–95	427
Total contribution	464
Total NNDR pool payments (1+2+3+4)	10,685
Total NNDR Distributable amount for 1994–95:	10,685

Notes:

1. Item 1: the estimated total local list rateable value (RV) represents the average value of non-domestic hereditaments on local rating lists, taking into account the effect of appeals decided during 1994–95.
2. Item 1(i)(a): 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 Non-Domestic Rating Acts 1992 and 1993.
3. Item 1(i)(b): adjustments based on estimated mandatory reliefs for empty property in 1994–95 and earlier years not taken into account in the calculation of the distributable amount for 1993–94.
4. Item 1(i)(d): discretionary relief granted to charities, non-profit making organisations and for other reasons.
5. Item 1(ii)(a): the allowance for the costs incurred by local authorities in collecting non-domestic rates from ratepayers.
6. Item l(ii)(c): 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 654 is the amount which will be retained by the authority to meet its own expenditure.
7. Item 1(iii)(a): net adjustments in respect of appeals and other amendments to the rating list affecting liability for previous year's rates settled in 1994–95.
8. Item l(iii)(b): Outturn adjustment based on outturn for 1992–93 and estimates for 1993–94. Much of the adjustments relate to reduced yield as a result of the number of appeals expected to be decided during 1993–94.
9. Item 2: the rateable value of non-domestic hereditaments on the central rating list after adjustments for appeals and adjustments in respect of previous years.
10. Item 4(a) and (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 Acts 1992 and 1993. The amount in respect of 1993–94 takes into account the contribution which was made in the distributable amount for that financial year.