HL Deb 02 December 1997 vol 583 cc188-9WA
Lord Evans of Parkside

asked Her Majesty's Government:

Whether they will set out the basis of the calculations of the distributable amount of non-domestic rates for 1998–99.

Baroness Hayman

The distributable amount of non-domestic rates in England for 1998-99 will be £12,524 million. This is based on a non-domestic rate multiplier of 0.474 and includes an allowance of £360 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 regulations under Section 58 of the Local Government Finance Act 1988 to phase in the effects of the 1995 revaluation on rate bills.

The calculation for 1998–99, and the prior-year figures on which this is based, are set out in the table below:

National non-domestic rates—Calculation of distributable amount
1995–96 1996–97 1997–98 1998–99
final outturn provisional outturn provisional outturn estimated in-rear contribution
5. Adjustments
Surplus brought forward −1,177 −1,059 −1,002 −326
Combined total 10,295 11,734 11,701 12,524
Distributable amount 11,354 12,736 12,027 12,524
Surplus carried forward −1,059 −1,002 −326


The amounts shown are those recorded in the post end-year (NNDR3) returns. For 1997–98 the amounts shown are the estimated outturn for the year based mainly upon authorities' provisional contributions to the non-domestic rating pool.

1. Item 1: The gross calculated rate yield represents the total value of non-domestic hereditaments on local rating lists times the multiplier.

2. Item 1 (i)(a): The transitional decrease adjustment includes the estimated amount of rates that will not be recouped from local list ratepayers under the transitional arrangements made by regulations under section 58 of the Local Government Finance Act 1988.

3. Item 1(i)(b): The empty property relief adjustments include voids and partially occupied hereditaments. The 1998–99 figure includes an allowance for the increase in the gross rates yield.

4. Item 1 (i)(c): Charitable rate relief. The 1998–99 figure includes mandatory relief for village shops under the Local Government and Rating Act 1997. As for empty property relief.

5. Item l(i)(d): Discretionary relief granted to charities, non-profit making organisations and for other reasons including, for 1998–99, discretionary relief for village shops and other rural businesses granted under the Local Government and Rating Act 1997. As for charitable rate relief.

6. Item 1 (ii)(a)&(b): The allowances for the costs and losses incurred by local authorities in collecting non-domestic rates from ratepayers.

7. Item 1(ii)(c): City offset—The amount which the City of London will not be required to pay into the non-domestic rating pool. It is the amount which will be retained by the authority to meet its own expenditure.

8. Item 1(iii): Net adjustment in respect of appeals and other amendments to the rating list affecting liability for previous years rates settled in that year.

9. Item 2: The rateable value of non-domestic hereditaments on the central rating list times the multiplier, less the net effect of transitional arrangements, and adjusted for appeals and other changes in respect of previous years.

10. Item 3: The 1998–99 figure for crown properties includes an allowance for the effect of transition.

11. Item 4: The contribution from central government to offset the amount of the Secretary of State's estimate of income foregone as a result of transitional arrangements established by regulations under Section 58 of the Local Government Finance Act 1988.