§ The Minister for Local Government and the Regions (Mr. Nick Raynsford)On Thursday 5 December 2002 I presented the draft Settlement for 2003–04. Included in the announcement was the amount available of non-domestic rates in England for 2003–04 to be redistributed to local authorities. This statement details the calculation of the Distributable Amount and announces the non-domestic rate poundage (multiplier) for 2003–04.
The multiplier will be 44.4 pence. The amount of non-domestic rates in England for 2003–04 to be redistributed to local authorities will be £15,600 million.
The calculations for 2003–04, and the prior-year figures, on which this is based, are set out in the following table.
3WS
National non-domestic rates—calculation of Distributable Amount for 2003–04 £ million 2000–01 Provisional Outturn 2001–02 Provisional Outturn 2002–03 Provisional Out turn 2003–04 Estimated in-year contribution Distributable Amount 15,402 15,136 16,626 15,600 Surplus Carried Forward -302 137 -586 0 Notes:
For 2001–02 and 2000–01 the amounts shown are those recorded in the post end-year (NNDR3) returns. For 2002–03 the amounts shown are the provisional outturn for the year based mainly upon authorities' provisional contributions to the non-domestic rating pool. For 2003–04 the estimates are based on:
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 2003–04 figure includes an allowance for the increase in the gross rate yield.
4. Item l(i)(c)Charitable rate relief. The 2003–04 figure includes an allowance for the increase in the gross rate yield.
5. Item 1(i)(d)Rural Shops and Post Office relief. Figures include mandatory relief for general stores and post offices under the Local Government and Rating Act 1997. Figures for 2001–02 onwards includes mandatory relief for petrol filing stations and public houses under the Non-Domestic Rating (Public Houses and Petrol Filling Stations) (England) Order 2001 (SI 2001/1345) and mandatory relief for new enterprises on former agricultural premises under the Rating (Former Agricultural Premises and Rural Shops) Act 2001. The 2003–04 figure includes an allowance for the increase in the gross rate yield.
6. Item 1(i)(e)Discretionary relief granted to charities, non-profit making organisations and for other reasons including discretionary relief for village shops and post offices under the Local Government and Rating Act 1997. Figures for 2001–02 onwards include discretionary relief for petrol filing stations and public houses under the Non-Domestic Rating (Public Houses and Petrol Filling Stations) (England) Order 2001 (SI 2001/1345) and discretionary relief for new enterprises on former agricultural premises under the Rating (Former Agricultural Premises and Rural Shops) Act 2001. The 2003–04 figure includes an allowance for the increase in the gross rate yield.
4WS7. 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: Almost all properties included in the crown list in previous years are included in the local list figures at item 1.
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.