HC Deb 29 November 2000 vol 357 cc617-20W
Dr. Starkey

To ask the Secretary of State for the Environment, Transport and the Regions if he will announce the national non-domestic rates multiplier for 2001–02 and set out the basis of the calculation of the distributable amount of non-domestic rates for 2001–02. [141135]

Ms Armstrong

The non-domestic rate poundage (multiplier) will be 43 pence. The amount of non-domestic rates in England for 2001–02 to be redistributed to local authorities will be £15,137 million, although estimated payments into the pool in 2001–02 will be £14,959 million. The Distributable Amount includes an allowance of £262 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 and the transitional relief scheme, announced on 25 November 1999,Official Report, columns 769–85W.

The calculations for 2001–02, and the prior-year figures, on which this is based, are set out in the tables.

National non-domestic rates—calculations of distributable amount for 2001–02
£ million
2000–011 2001–022
1. Income from Local lists
Multiplier (p) 41.6 43.0
Gross Rate Yield 15,868 16,521
(i) Reliefs
(a) Net Transitional Relief -990 -608
(b) Empty properties -953 -1,020
(c) Charitable -537 -573
(d) Rural Shops and Post Offices -2 -2
(e) Discretionary -33 -35
Net Yield after reliefs 13,352 14,283
(ii) Collection costs/reductions to contributions
(a) Costs of collection -85 -84
(b) Losses on collection -143 -167
(c) City of London offset -7 -7
Total contribution in respect of year 13,119 14,026
(iii) Repayments/interest payments
Total adjustments -366 -203
Net Local Yield 12,753 13,822
2. Income from Central list
Net Central List Yield 1,137 1,137
3. Income from Crown
Contributions in Aid
Net Crown Yield 0 0
Total NDR Yield 13,890 14,959
4. Exchequer Contributions
Total Exchequer contributions 415 262
Total NNDR pool payments
(1†2†3†4) 14,305 15,221
5. Adjustments
Surplus brought forward 1,013 -84
Combined total 15,318 15,137
Distributable amount 15,402 15,137
Surplus carried forward -84 0
1 Provisional Outturn
2 Estimated in-year contribution

National non-domestic rates—calculations of distributable amount for 2000–01
£ million
1998–991 1999–20001
1. Income from Local lists
Multiplier (p) 47.4 48.9
Gross Rate Yield 13,850 14,158
(i) Reliefs
(a) Net Transitional Relief -485 -460
(b) Empty properties -928 -930
(c) Charitable -504 -517
(d) Rural Shops and Post Offices -2 -2
(e) Discretionary -18 -24
Net Yield after reliefs 11,912 12,225
(ii) Collection costs/reductions to contributions
(a) Costs of collection -79 -83
(b) Losses on collection -109 -121
(c) City of London offset -7 -7
Total contribution in respect of year 11,718 12,014
(iii) Repayments/interest payments
Total adjustments -526 -270
Net Local Yield 11,192 11,744
2. Income from Central list
Net Central List Yield 1,273 1,319
3. Income from Crown
Contributions in Aid
Net Crown Yield 440 332
Total NDR Yield 12,905 13,395
4. Exchequer Contributions
Total Exchequer contributions 360 310
Total NNDR pool payments
(1†2†3†4) 13,265 13,705
5. Adjustments
Surplus brought forward 178 919
Combined total 13,443 14,625
Distributable amount 12,524 13,612
Surplus carried forward 919 1,013
1 Provisional Outturn

Notes:

For 1998–99 and 1999–2000 the amounts shown are those recorded in the post end-year (NNDR3) returns. For 2000–01 the amounts shown are the estimated outturn for the year based mainly upon authorities' provisional contributions to the non-domestic rating pool. For 2001–02 the estimates are based on:

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 and the transitional relief scheme, announced by written PQ on 25 November 1999, Official Report, column 770W.

3. Item 1(i)(b): The empty property relief adjustments include voids and partially occupied hereditaments. The 2001–02 figure includes an allowance for the increase in the gross rate yield.

4. Item 1(i)(c): Charitable rate relief. The 2001–02 figure includes an allowance for the increase in the gross rate yield.

5. Item t(i)(d): Rural Shops and Post Office relief. Figures for 1998–99 onwards include mandatory relief for village shops and post offices under the Local Government and Rating Act 1997. The 2001–02 figure includes an allowance for the increase in the gross rate yield.

6. Item 1(i)(e): Discretionary relief granted to charities, non-profit making organisations and for other reasons including, for 1998–99 onwards, discretionary relief for village shops and post offices under the Local Government and Rating Act 1997. The 2001–02 figure includes an allowance for the increase in the gross rate yield.

7. Item 1(ii)(a) and (b): The allowances for the costs and losses incurred by authorities in collecting non-domestic rates from ratepayers.

8. Item l(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.

9. 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.

10. 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.

11. Item 3: the 1998–99 and 1999–2000 figures for Crown properties include an allowance for the effect of transitional arrangements. For 2000–01 and 2001–02, properties included in the Crown list in previous years are included in the local list figures at item 1

12. 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 and the transitional relief scheme, announced by written PQ on 25 November 1999, Official Report, column 770W.