HC Deb 30 November 1995 vol 267 cc802-3W
Sir Irvine Patnick

To ask the Secretary of State for the Environment what meetings he proposes to hold with representatives of Sheffield city council following the local government settlement statement. [3202]

Mr. Curry

It is open to all authorities, including Sheffield, to request a meeting with Ministers during the consultation period which follows the provisional settlement announcement.

Mr. Lidington

To ask the Secretary of State for the Environment if he will set out the basis of his calculations of the distributable amount of non-domestic rates for 1996–97. [3698]

Mr. Curry

The distributable amount of non-domestic rates in England for 1996–97 will be £12,736 million. This is based on non-domestic rate multiplier of 0.449 and includes an allowance of £429 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 to further phase in the effects of the 1995 revaluation on rate bills.

The calculation for 1996–97, and the prior-year figures on which this is based, are set out in the table:

National non-domestic rates—calculation of distributable amount
1993–94 1994–95 1995–96 1996–97
Final outturn £ million Provisional outturn £ million Provisional outturn £ million Estimated in-year contribution £million
Total contribution in respect of year 9,979 10,285 10,506 10,996
(iii) Adjustments
(a) Repayments/interest payments -891 -1,635 -556 -154
(b) Revisions to contributions at outturn (95–96 only) -86
Total adjustments -891 -1,635 -642 -154
Net Local Yield 9,088 8,649 9,864 10,842
2. Income from Central List
Net Central List Yield 1,095 1,114 1,192 1,258
3. Income from Crown Contributions in Aid
Net Crown Yield 445 548 541 525
Total NDR Yield 10,628 10,311 111,597 12,626
4. Exchequer Contributions
(a) Local List Transition 591 425 600 419
(b) Central List/Crown 42 20 20 10
Total Exchequer contributions 633 445 620 429
Total NNDR Pool payments (1+2+3+4) 11,261 10,756 12,217 13,055
5. Adjustments
Surplus brought forward -954 -1,252 -1,182 -319
Combined total 10,307 9,503 11,035 12,736
Distributable amount 11,559 10,685 11,354 12,736
Surplus carried forward -1,252 -1,182 -319

Notes:

1. Item 1: The gross calculated rate yield represents the total value of non-domestic hereditaments on local rating lists times the multiplier. For the years to 1994–95 the yield is the amount recorded in the post-end year (NNDR3) returns. For 1995–96 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 1995–96 are as reported by authorities. The 1996–97 figure includes an allowance for the increase in the gross rates yield.

4. Item 1(i)(c): Charitable rate relief. As for empty property relief.

5. Item 1 (I)(d): Discretionary relief granted to charities, non-profit making organisations and for other reasons. As for charitable rate relief, with a further adjustment to allow for increased relief following the move to take these reliefs outside capping.

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 an software costs arising from the Non-Domestic Rating Acts.

7. Item 1(ii)(c): City Offset—a preliminary estimate for 1996–97 (£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 an other amendments to the rating list affecting liability for previous years 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 1995–96. 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 1996–97 figure is calculated as the estimated rateable value times the multiplier, less the effect of the transitional arrangements.

11. Item 3: The 1996–97 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.