Non-domestic Rate Pool

HC Deb 01 March 2004 vol 418 cc773-4W

Mr. Dhanda

To ask the Deputy Prime Minister if he will make a statement on the national non-domestic rate pool. [156822]

Mr. Raynsford

The non-domestic rates are a national tax on the occupation of property and the billing and collection of the rates is undertaken locally.

The rates revenue is collected on behalf of my right hon. Friend the Deputy Prime Minister who pays it into the national non-domestic rates pool. The revenue from the pool is then re-distributed to all local authorities (including county councils, Police and Fire) as part of the financial settlement to local authorities.

The amount a local billing authority receives in a distribution from the pool is not necessarily the same as the amount it contributed to the pool. Distributions from the pool are calculated on the basis of domestic population in the local authority area not on the number of business ratepayers or business rates revenue.

Mr. Dhanda

To ask the Deputy Prime Minister how much money was collected in 2003–04 from businesses in Gloucester in non-domestic rates; and how much of this was passed on to(a) Gloucester city council and (b) Gloucestershire county council. [156823]

Mr. Raynsford

A total of £129,720,708 was collected in non-domestic rates from businesses in Gloucestershire in 2003–04 of which Gloucester city council collected £34,588,861, under the national non-domestic rates allocation system, council receipts are related to population, rather than to the amount raised in their area. In the case of Gloucestershire, £3,836,122 was passed on to Gloucester city council and Gloucestershire county council received £151,436,097.