§ Mr. CongdonTo 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 1997–98. [6552]
§ Mr. CurryThe distributable amount of non-domestic rates in England for 1997–98 will be £12,027 million. This is based on a non-domestic rate multiplier of 0.458 and includes an allowance of £400 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 under section 58 of the Local Government Finance Act 1988.
The calculation for 1997–98, and the prior-year figures on which this is based, are set out in the table:
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National non-domestic rates—calculation of distributable amount £ million 1994–95 1995–96 1996–97 1997–98 Final outturn Provisional outturn Provisional outturn Estimated in year contribution 1. Income from local lists Multiplier (p) 42.3 43.2 44.9 45.8 Gross Rate Yield 12,254 12,834 13,346 13,617 (i) Reliefs (a) Net Transitional Relief -410 -740 -548 -580 (b) Empty properties -1,150 -1,056 -1,158 -1,151 (c) Charitable -418 -447 -470 -479 (d) Discretionary -20 -20 -25 -25 Net Yields after reliefs 10,255 10,566 11,146 11,382 (ii) Collection costs/reductions to contributions (a) Costs of collection -70 -75 -77 -79 (b) Loses on collection -166 -143 -212 -200 (c) City of London offset -7 -7 -7 -7 Total contribution in respect of year 10,013 10,341 10,850 11,097 (iii) Adjustments (a) Repayments/interest payments -1,367 -1,048 -112 -408 (b) Revisions to contributions at outturn (1996–97 only) 9 Total adjustments -1,367 -1,048 -103 -408 Net local yields 8,646 9,293 10,747 10,689 2. Income from central list Net Central List Yield 1,114 1,192 1,273 1,314 3. Income from Crown contributions in aid Net Crown Yield 548 481 500 470 Total NDR Yield 10,307 10,966 12,520 12,473 4. Exchequer Contributions Total Exchequer contributions 464 505 429 400 Total NNDR pool payments (1+2+3+4) 10,771 11,471 12,949 12,873 5. Adjustments Surplus brought forward -1,262 -1,176 -1,059 -845 Combined total 9,509 10,925 11,890 12,027 Distributable amount 10,685 11,354 12,736 12,027 Surplus carried forward -1,176 -1,059 -845 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 1995–96 the yield is the amount recorded in the post-end year (NNDR3) returns. For 1996–97 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 Transactional 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 I(i)(b): The empty property relief adjustments include avoids and partially occupied hereditaments. Figures up to 1996–97 are as reported by authorities. The 1997–8 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.
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 1997–98 (£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 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 1996–97. 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 year. The 1997–98 figure is calculated as the estimated Rateable Value times the multiplier, less the effect of the transitional arrangements.
11. Item 3: The 1997–98 figure for Crown properties includes an allowance for the effect of transition.
12. Item 4: 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.