§ Mr. Gordon MarsdenTo ask the Secretary of State for the Environment, Transport and the Regions if he will set out the basis of his calculations of the distributable amount of non-domestic rates for 2000–01. [102548]
§ Ms ArmstrongThe amount of non-domestic rates in England for 2000–01 to be redistributed to Local Authorities will be £15,400 million, although estimated payments into the pool in 2000–01 will be £14,342 million. The non-domestic rate poundage (multiplier) will be 41.6 pence. The Distributable Amount includes an allowance of £415 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 and the transitional relief scheme, announced on 25 November 1999,Official Report, column 770.
The calculation for 2000–01, and the prior-year figures on which this is based, are set out in the following table.
605W
National non-domestic rates-calculations of distributable amount for 2000–01 1997–98 1998–99 1999–2000 2000–01 Final outturn Provisional outturn Provisional outturn Estimated in-year contribution 5. Adjustments Surplus brought forward -1,000 178 919 1,058 Combined total 12,205 13,442 14,670 15,400 Distributable amount 12,027 12,524 13,612 15,400 Surplus carried forward 178 919 1,058 0 Notes:
The amounts shown are those recorded in the post end-year (NNDR3) returns. For 1999–2000 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 and the transitional relief scheme, announced by written PQ on 25 November 1999, Official Report, column 770W.
3. Item 1(i)(b): The empty property relief adjustments include voids and partially occupied hereditaments. The 2000–01 figure includes an allowance for the increase in the gross rates yield.
4. Item 1(i)(c): Charitable rate relief. The 2000–01 figure includes an allowance for the increase in the gross rates yield.
5. Item 1(i)(d): Rural Shops and Post Office relief. Figures for 1998–99 onwards include mandatory relief for village shops and post offices under the Local Government and Rating Act 1997. The 2000–01 figure includes an allowance for the increase in the gross rates yield.
6. Item 1(i)(e): Discretionary relief granted to charities, non-profit making organisations and for other reasons including, for 1998–99 onwards, discretionary relief for village shops and post offices under the Local Government and Rating Act 1997. The 2000–01 figure includes an allowance for the increase in the gross rates yield.
7. Item 1(ii)(a) and (b): The allowances for the costs and losses incurred by authorities in collecting non-domestic rates from ratepayers.
8. 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 City to meet its own expenditure.
9. 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.
10. 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.
11. Item 3: the 2000–01 figure for Crown properties includes an allowance for the effect of transitional arrangements.
12. Item 4: the contribution from central government to offset the amount of the Secretary of State's estimate of income forgone as a result of transitional arrangements established by regulations under section 58 of the Local Government Finance Act 1988 and the transitional relief scheme, announced by written PQ on 25 November 1999, Official Report, column 770W.