HL Deb 01 December 1994 vol 559 cc58-60WA
Lord Broughan and Vaux

asked Her Majesty's Government:

Wether they will explain the basis of his calculations of the distributable amount of non-domestic rates for 1995–96.

Viscount Ullswater

The 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 calculations for 1995–96, 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
1990–91 1991–92 1992–93 1993–94 1994–95 1995–96
Outturn £ million Outturn £ million Outturn £ million Provisional outturn £ million In-year contribution £ million Estimated in-year contribution £ million
i) Beliefs
a) Net Transitional Relief -182 -142 -395 -480 -548 -477
b) Empty properties -710 -964 -1,162 -1,174 -1,214 -1,303
c) Charitable -240 -305 -318 -352 -402 -435
d) Discretionary -12 -16 -20 -21 -19 -20
Net Yield after reliefs 9,157 10,607 10,374 10,329 10,308 10,673
ii) Collection Costs/Reductions to Contributions
a) Costs of collection -43 -46 -67 -68 -69 -75
b) Losses on collection -121 -203 -200 -192 -170 -190
c) City of London offset -29 -30 -31 -25 -7 -7
Total contribution in respect of year 8,964 10,329 10,075 10,045 10,063 10,401
iii) Adjustments
a) Repayments/interest/Late rating adjustments 0 27 -254 -957 -888 -349
b) Revisions to contributions at outturn (94/5 only) 0 0 0 0 -211 0
Total adjustments 0 27 -254 -957 -1,100 -349
Net Local Yield 8,964 10,355 9,821 9,088 8,963 10,052
2. Income from Central List
Net Central List Yield 1,016 1,100 1,098 1,095 1,118 1,151
3. Income from Crown Contributions in Aid
Net Crown Yield 610 463 462 445 507 540
Total Yield 10,590 11,918 11,381 10,627 10,588 11,743
TOTAL NDR YIELD
4. Exchequer Contributions
a) Local List Transition 0 0 271 591 435 477
b) Central List/Crown 0 0 27 42 20 28
Total Exchequer contributions 0 0 298 633 455 505
Total pool NNDR payments (1+2+3+4) 10,590 11,918 11,679 11,261 11,043 12,248
5. Adjustments
Surplus brought forward 0 162 -328 -954 -1,253 -894
Combined total 10,590 12,080 11,352 10,306 9,790 11,354
Distributable amount 10,429 12,408 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 allowance 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 (£6.5m) 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 £2,803m times the multiplier, less the effect of the transitional arrangements.

11 Item 3: The 1995–96 figure for crown properties includes an 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 foregone 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.