The Non-Domestic Rating (Rates Retention: Miscellaneous Amendments) Regulations 2024
| Jurisdiction | UK Non-devolved |
| Year | 2024 |
| Citation | SI 2024/324 |
2024 No. 324
Rating And Valuation, England
The Non-Domestic Rating (Rates Retention: Miscellaneous Amendments) Regulations 2024
Made 7th March 2024
Coming into force 8th March 2024
The Secretary of State makes these Regulations in exercise of the powers conferred by section 143(1) and (2) of, and paragraphs 6, 9, 10, 22, 25 and 37 of Schedule 7B to, the Local Government Finance Act 19881.
A draft of this instrument was laid before and approved by a resolution of each House of Parliament in accordance with section 143(9D)2of that Act.
Citation, commencement and extent
1.—(1) These Regulations may be cited as the Non-Domestic Rating (Rates Retention: Miscellaneous Amendments) Regulations 2024.
(2) These Regulations come into force on the day after the day on which they are made.
(3) These Regulations extend to England and Wales.
Amendment of the Non-Domestic Rating (Rates Retention) Regulations 2013
2.—(1) The Non-Domestic Rating (Rates Retention) Regulations 20133are amended as follows.
(2) In regulation 2(1)—
(a)
(a) in the definition of “small business non-domestic rating multiplier”, for “determined under Part 1 of” substitute “calculated by the Secretary of State under”;
(b)
(b) in the appropriate places, insert the following definitions—
“
“Hartlepool MDC Order” means the Hartlepool Development Corporation (Functions) Order 20234;
”;
“
“Middlesbrough MDC Order” means the Middlesbrough Development Corporation (Functions) Order 20235;
”;
“
“non-domestic rating multiplier” in relation to a year means the non-domestic rating multiplier for the year calculated by the Secretary of State under Schedule 7 to the 1988 Act;
”;
“
“small business hereditament” means a hereditament for which on 1st April 2023 a rateable value of less than £51,000 is shown on a local non-domestic rating list;
”;
“
“standard hereditament” means a hereditament for which on 1st April 2023 a rateable value greater than £50,999 is shown on a local non-domestic rating list.
(3) In regulation 5 (payments by billing authorities to major precepting authorities in respect of share of income)—
(a)
(a) after paragraph (2), insert—
“
2A Where a billing authority has received an MDC payment for the year, it must make a payment for the year to each of its relevant precepting authorities of the amount that is that authority’s share of the MDC payment.
”;
(b)
(b) in paragraph (4), for “payment” substitute “payments”;
(c)
(c) after paragraph (4), insert—
“
5 In this regulation, an “MDC payment” means a payment from a Mayoral development corporation6made in accordance with Part 4 of the Middlesbrough MDC Order or Part 4 of the Hartlepool MDC Order.
(4) After regulation 12 (reconciliation of amounts where authority has failed to act diligently), insert—
“
Reconciliation of MDC payments
12A.—(1) This regulation applies to an authority in relation to which there is a deficit or a surplus.
(2) Any deficit or surplus shall belong to or be borne by the billing authority and any relevant precepting authorities in accordance with the shares set out in regulation 5.
(3) A relevant precepting authority must pay its share of a surplus to the billing authority.
(4) A billing authority must pay to the relevant precepting authority that authority’s share of the deficit.
(5) Any payments under this regulation must be made before the end of the period of 28 days beginning with the certification date.
(6) In this regulation—
“certification date” means the date on which the billing authority’s certified non-domestic rating income for the relevant year is certified under regulation 9;
“deficit” and “surplus” have the meanings given in article 2 of the Middlesbrough MDC Order or article 2 of the Hartlepool MDC Order (as the case may be).
(5) In paragraph 1(2) of Schedule 1 (non-domestic rating income)—
(a)
(a) in paragraph (a), for “Part 1” substitute7“Part A17”;
(b)
(b) after paragraph (b)(ii), insert—
“
(iia)
(iia) for a financial year beginning on or after 1st April 2024 is determined by the formula—
where—
where—
X1 is the value of X for the preceding year;
B2 is the small business non-domestic rating multiplier for the relevant year;
B1 is the small business non-domestic rating multiplier for the preceding year;
C2 is the non-domestic rating multiplier for the relevant year;
C1 is the non-domestic rating multiplier for the preceding year;
D is the sum of the total rateable value of all small business hereditaments shown in the authority’s list on 1st April 2023;
E is the sum of the total rateable value of standard hereditaments shown in the authority’s list on 1st April 2023;
Amendment of the Non-Domestic Rating (Levy and Safety Net) Regulations 2013
3.—(1) The Non-Domestic Rating (Levy and Safety Net) Regulations 20138are amended as follows.
(2) In regulation 2(1) (interpretation)—
(a)
(a) in the definition of “business rates baseline”—
(i) in sub-paragraph (c), in the second place it occurs, omit “and” ;
(ii) in sub-paragraph (d), for “a year commencing on or after 1st April 2021” substitute “the year commencing on 1st April 2021 or 2022”;
(iii) after sub-paragraph (d), insert—
“
(e)
(e) for the year commencing on 1st April 2023, the amount specified with respect to an authority by regulation 5 and Schedule 7;
”;
(b)
(b) in the definition of “small business non-domestic rating multiplier”, for “determined under Part 1 of” substitute “calculated by the Secretary of State under”;
(c)
(c) in the appropriate places, insert the following definitions—
“
“non-domestic rating multiplier” in relation to a year means the non-domestic rating multiplier for the year calculated by the Secretary of State under Schedule 7 to the 1988 Act;
”;
“
“small business hereditament” means a hereditament for which on 1st April 2023 a rateable value of less than £51,000 is shown on a local non-domestic rating list;
”;
“
“standard hereditament” means a hereditament for which on 1st April 2023 a rateable value greater than £50,999 is shown on a local non-domestic rating list.
(3) In regulation 4(1) (meaning of retained rates income for purposes of levy and safety net calculations), after “Schedule 1B”, insert “, Schedule 6A”.
(4) In regulation 5 (business rates baseline and baseline funding level)—
(a)
(a) after paragraph (1C), insert—
“
1D For the year commencing on 1st April 2023, the business rates baseline of an authority listed in column A of the table in Schedule 7 is the amount specified with respect to that authority in column D of that table.
”;
(b)
(b) in paragraph (3)—
(i) in sub-paragraph (a), for the words from “and the years” to “(b),” substitute “, 1st April 2018, 1st April 2019, 1st April 2020, 1st April 2021 and 1st April 2022”;
(ii) in sub-paragraph (b)—
(aa) in the definition of A, for “year immediately preceding the relevant” substitute “preceding”;
(bb) in the definition of B1, for “year.” substitute “year;”;
(iii) after sub-paragraph (b), insert—
“
(c)
(c) the years commencing on or after 1st April 2024 is the amount calculated in accordance with the formula—
where—
A is the baseline funding level for the preceding year;
B2 is the small business non-domestic rating multiplier for the relevant year;
B1 is the small business non-domestic rating multiplier for the preceding year;
C2 is the non-domestic rating multiplier for the relevant year;
C1 is the non-domestic rating multiplier for the preceding year;
D is—
(i) in the case of a billing authority, the sum of the total rateable value of all small business hereditaments shown in the authority’s list on 1st April 2023;
(ii) in the case of a major precepting authority, the sum of the total rateable value of all small business hereditaments shown on 1st April 2023 in the lists of all billing authorities in relation to that authority;
E is—
(i) in the case of a billing authority, the sum of the total rateable value of standard hereditaments shown in the authority’s list on 1st April 2023;
(ii) in the case of a major precepting authority, the sum of the total rateable value of all standard hereditaments shown on 1st April 2023 in the lists of all billing authorities in relation to that authority on 1st April 2023.
”;
(c)
(c) in paragraph 4(a)—
(i) in paragraph (ii), omit “and”;
(ii) after paragraph (ii), insert—
“
(iii)
(iii) for the year commencing on 1st April 2023, is to be the sum of the individual business rates baselines of the authorities that comprise the pool for the year commencing on 1st April 2023; and
(5) In regulation 6 (individual levy rates and safety net thresholds)—
(a)
(a) in paragraph (2B), in the definitions of E and F, for “1st April 2017” substitute “the day on which the current lists were compiled”;
(b)
(b) in paragraph (2F)—
(i) omit “or after”;
(ii) after “2019” insert “, 1st April 2020, 1st April 2021 or 1st April 2022”;
(c)
(c) in paragraph (2I), for the words from “or after” to “that table” substitute “1st April 2021 or 1st April 2022”;
(d)
(d) after paragraph (3), insert—
“
4 In this regulation, “current lists” means the local non-domestic rating lists compiled in accordance with section 41(1) of the 1988 Act and in force for the relevant year.
(6) In Schedule 1 (calculation of retained rates income)—
(a)
(a) in paragraph 1(1) (calculation for billing authorities)—
(i) for the formula which appears immediately after the opening words substitute—
“
”
(ii) in the definition of P—
(aa) in paragraph (a), for “or (h)” substitute “, (h) or (i)”;
(bb) for paragraph (h) substitute—
“
(h)
(h) for the relevant year beginning on 1st April 2023, the amount specified for the authority in column B of the table in Schedule 7;
(i)
(i) for the relevant year beginning on 1st April 2024, the amount calculated for that authority in accordance with the formula—
where—
A is P for...
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