Non-domestic Rates (Hansard, 7 December 1998)

§ Ms Armstrong

The distributable amount of non-domestic rates in England for 1999–2000 will be £13,612 million. This is based on a non-domestic rate poundage (multiplier) of 48.9p and includes an allowance of £310 million for an Exchequer payment to the non-domestic rates pool, to compensate for the shortfall which would otherwise occur as a result of the regulations under section 58 of the Local Government Finance Act 1988 to phase in the effects of the 1995 revaluation on rate bills.

The calculation for 1999–2000, and the prior-year figures on which this is based, are set out in the table: 51W

National non-domestic rates—calculation of distributable amount
	1996–97	1997–98	1998–99	1999–2000
	Final outturn	Provisional outturn	Provisional outturn	Estimated in-year contribution
Total adjustments	-370	-210	-546	-619
Net Local Yield	10,659	11,169	10,869	10,905
2.Income from Central List
Net Central List Yield	1,221	1,207	1,265	1,303
3. Income from Crown Contributions in Aid
Net Crown Yield	487	469	445	460
Total NDR Yield	12,366	12,846	12,579	12,668
4. Exchequer Contributions
Total Exchequer contributions	429	400	360	310
Total NNDR pool payments (1+2+3+4)	12,795	13,246	12,939	12,978
5. Adjustments
Surplus brought forward	-1,059	,1,000	218	634
Combined total	11,736	12,245	13,157	13,612
Distributable amount	12,736	12,027	12,524	13,612
Surplus carried forward	-1,000	218	634	0

Notes:

The amounts shown are those recorded in the post end-year (NNDR3) returns. For 1998–99 the amounts shown are the estimated outturn for the year based mainly upon authorities' provisional contributions to the non-domestic rating pool.

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.

3. Item 1(i)(b): The empty property relief adjustments include voids and partially occupied hereditaments. The 1999–2000 figure includes an allowance for the increase in the gross rates yield.

4. Item 1(i)(c): Charitable rate relief. Figures for 1998–99 onwards include mandatory relief for village shops under the Local Government and Rating Act 1997. The 1999–2000 figure 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 including, for 1998–99 onwards, discretionary relief for village shops under the Local Government and Rating Act 1997. The 1999–2000 figure 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 authorities in collecting non-domestic rates from ratepayers.

7. 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.

8. 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.

9. 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.

10. Item 3: the 1999–2000 figure for Crown properties includes an allowance for the effect of transitional arrangements.

11. 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.