§ Mr. Harry GreenwayTo ask the Secretary of State for the Environment if he will explain the basis of his calculations of the distributable amount of non-domestic rates for 1995–96.
§ Mr. CurryThe distributable amount of non-domestic rates in England for 1995–96 will be £11,354 million. This is based on a non-domestic rate multiplier of 0.432 and includes an allowance of £505 million for an Exchequer payment to the non-domestic rates pool to compensate for the shortfall which would otherwise occur as a result of regulations to be made under section 58 of the Local Government Finance Act 1988 which will phase in the effects of the 1995 revaluation on rate bills.
The calculation for 1995–96, and the prior-year figures on which this is based, are set out in the following table:
881W
National non-domestic rate—calculation of distributable amounts £ millions 1990–91 Outturn 1991–92 Outturn 1992–93 Outturn 1993–94 Provisional outturn 1994–95 in-year contribution 1995–96 estimated in-year contribution (5) Adjustments Surplus brought forward — 162 -328 -954 -1,253 -894 Combined total 10,590 12,080 11,352 10,306 9,790 11,354 Distributable amount 10,429 12,048 12,306 11,559 10,685 11,354 Surplus carried forward 162 -328 -954 -1,253 -894 — Notes:
(1) Item 1: The gross calculated rate yield represents the average value of non-domestic hereditaments on local rating lists times the multiplier. For 1990–91 to 1993–94 the yield is the amount recorded in the post-end year (NNDR3) returns. For 1994–95 it is the amount underlying authorities' provisional contributions to the non-domestic rating pool including the prescribed amount for Enterprise Zones.
(2) Item 1(i)(a): The Transitional decrease 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, 1993 and 1994.
(3) Item 1(i)(b): The empty property relief adjustments include voids and partially occupied hereditaments. Figures up to 1994–95 are as reported by authorities. The 1995–96 figure includes allowances for the increase in the gross rates yield and for economic recovery.
(4) Item 1(i)(c): Charitable rate relief for 1995–96 includes an allowance for the increase in the gross rates yield.
(5) Item 1(i)(d): Discretionary relief granted to charities non-profit making organisations and for other reasons, for 1995–96 includes an allowance for the increase in the gross rates yield.
(6) Item 1(ii)(a) and (b): The allowances for the costs and losses incurred by local authorities in collecting non-domestic rates from ratepayers, including the latest estimates of additional billing and software costs arising from the Non-Domestic Rating Acts.
(7) Item 1(ii)(c): City Offset-a preliminary estimate for 1995–96 (£6.5 million) of 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 will be retained by the authority to meet its own expenditure.
(8) Item 1(iii)(a): Net adjustment in respect of appeals and other amendments to the rating list affecting liability for previous year's rates settled in that year.
(9) Item 1(iii)(b): The revisions to contributions line applies only to estimated outturn revisions to the provisional contributions for 1994–95. For earlier years all figures are already based upon the outturn contributions.
(10) Item 2: The rateable value of non-domestic hereditaments on the central rating list times the multiplier, and adjusted for appeals and other changes in respect of previous years. The 1995–96 figure is calculated as the estimated Rateable Value of £2,803 million times the multiplier, less the effect of the transitional arrangements.
(11) Item 3: The 1995–96 figure for crown properties includes and allowance for the effect of transition.
(12) Item 4(a) and (b): The contribution from central government to offset the amount of the Secretary of State's estimate of income forgone arising from the provisions of the Non-Domestic Rating Acts 1992, 1993 and 1994.
(13) Where figures have been rounded there may be a small discrepancy between totals and the sum of constituent items.