Citation and commencement_I1

1. These Regulations may be cited as the Non-Domestic Rating (Levy and Safety Net) Regulations 2013 and come into force on the day after the day on which they are made.

Interpretation_I2

2.—(1) In these Regulations—

“ the 1988 Act ” means the Local Government Finance Act 1988 ;

“ authority ” means a relevant authority other than a local policing body;

“ billing authority ” means a billing authority in England;

“ baseline funding level ” means the amount calculated with respect to an authority in accordance with regulation 5;

[^F1 “ business rates baseline ” means—

“ certified non-domestic rating income ” has the same meaning as in the Non-Domestic Rating (Rates Retention) Regulations 2013 ( 3 );

“ individual levy rate ” means the figure determined in accordance with regulation 6 for an authority;

[^F9 “ 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; ^F9]

“ preceding year ” means the year preceding the relevant year;

“ relevant year ” [^F10 , except in Schedule 1A where it is subject to the definition contained in that Schedule, ^F10] means the financial year for which a calculation of a levy or safety net payment is being made;

“ retained rates income ” has the meaning given in regulation 4;

“ safety net threshold ” has the meaning given in regulation 6(3);

[^F9 “ 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; ^F9]

“ small business non-domestic rating multiplier ” in relation to a year means the small business non-domestic rating multiplier for the year [^F11 calculated by the Secretary of State under ^F11] Schedule 7 to the 1988 Act( 4 ).

[^F9 “ 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; ^F9]

(2) In these Regulations any reference to a billing authority’s collection fund income and expenditure account is a reference to a revenue account to which, in accordance with proper practices(5), are credited or charged, as the case may be, amounts in respect of the authority’s income and expenditure relating to sums paid or to be paid into, or payments met or to be met from, the authority’s collection fund.

Pools of authorities_I3

3. A pool of authorities is to be treated as a relevant authority for the purpose of these Regulations.

[^F12Meaning of retained rates income for purposes of levy and safety net calculations

4.—(1) Where the authority is a billing authority, its retained rates income—

(a)for a year ending on or before 31st March 2026, is the amount calculated in accordance with paragraphs 1 and 1A of Schedule 1, paragraphs 3 and 4 of Schedule 1A, paragraph 4 of Schedule 1B, Schedule 6A and Schedule 7;

(b)for a year beginning on or after 1st April 2026, is the amount calculated in accordance with paragraph 2 of Schedule 1ZA.

(2) Where the authority is a major precepting authority, its retained rates income—

(a)for a year ending on or before 31st March 2026, is the amount calculated in accordance with paragraph 2 of Schedule 1, paragraphs 5, 6, 7 and 8 of Schedule 1A and paragraph 5 of Schedule 1B;

(b)for a year beginning on or after 1st April 2026, is the amount calculated in accordance with paragraph 3 of Schedule 1ZA.

(3) Where the authority is a pool of authorities, its retained rates income—

(a)for a year ending on or before 31st March 2026, is the amount calculated in accordance with paragraph 3 of Schedule 1;

(b)for a year beginning on or after 1st April 2026, is the amount calculated in accordance with paragraph 4 of Schedule 1ZA.^F12]

Business rates baseline and baseline funding level_I4

5.—(1) The business rates baseline of an authority[^F13 for the year commencing on 1st April 2013^F13] is the amount specified with respect to that authority in column B of the table in Schedule 2.

[^F14 (1A) The business rates baseline of an authority for the year commencing on 1st April 2017 is the amount specified with respect to that authority in column B of the table in Schedule 4.^F14]

[^F15 (1B) For the year commencing on 1st April 2019 the business rates baseline of an authority listed in column A of the table in Schedule 5 is the amount specified with respect to that authority in column B of that table.^F15]

[^F16 (1C) For a year commencing on a date listed in column B of the table in Schedule 6, the business rates baseline of an authority listed in column A of that table is the amount specified with respect to that authority in column C of that table.^F16]

[^F17 (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.^F17]

(2) The baseline funding level for an authority for the year commencing on 1st April 2013 is the amount specified with respect to that authority in column C of the table in Schedule 2.

[^F18 (3) Unless paragraph (3ZA), (3ZB) or (3ZC) applies, the baseline funding level for an authority for—

(a)the years commencing on 1st April 2014, 1st April 2015, 1st April 2016 [^F19 , 1st April 2018, 1st April 2019, 1st April 2020, 1st April 2021 and 1st April 2022^F19] is the amount calculated in accordance with the formula—

(b)the year commencing on 1st April 2023 is the amount calculated in accordance with the formula—

[^F22 (c)[^F23 a year falling within the period beginning with 1st April 2024 and ending with 31st March 2026^F23] is the amount calculated in accordance with the formula—

[^F24 (d)the year commencing on 1st April 2026 is the amount specified for that authority in the table in Schedule 8;

(e)a year commencing on or after 1st April 2027 is the amount calculated in accordance with the formula—

[^F25 (3ZA) The baseline funding level of the Council of the Isles of Scilly—

(a)for the year commencing on 1st April 2018 is £1,478,412;

(b)for the year commencing on 1st April 2019 is £1,526,779.

(3ZB) For the year commencing on 1st April 2019, the baseline funding level for an authority listed in column A of the table in Schedule 5 is the amount listed in column C of the table in Schedule 5.^F25]

[^F26 (3ZC) For a year commencing on a date listed in column B of the table in Schedule 6, the baseline funding level for an authority listed in column A of that table is the amount specified with respect to that authority in column D of that table.^F26]

[^F27 (3A) The baseline funding level for an authority for the year commencing on 1st April 2017 is the amount calculated in accordance with the formula—

[^F28 (4) In the case of an authority which is a pool of authorities—

[^F29 (a)the business rates baseline of the authority—

(i)for the year commencing on 1st April 2013, 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 2013;

(ii)for the year commencing on 1st April 2017, 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 2017; ^F30...

[^F31 (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^F31,F29]]

(b)the baseline funding level for the authority for a year is to be the sum of the individual baseline funding levels for the year of the authorities that comprise the pool.^F28]

[^F32 (5) In this regulation, “ consumer prices index ” means the all items consumer prices index published by the Statistics Board, a body corporate established by section 1 of the Statistics and Registration Service Act 2007 . ^F32]

Individual levy rates and safety net thresholds_I5

6.—(1)[^F33 For the relevant years commencing on 1st April 2013, 1st April 2014, 1st April 2015 and 1st April 2016, an^F33] authority’s individual levy rate is 0.5 or the figure calculated in accordance with the formula in paragraph (2), whichever is less.

(2) The formula is—

[^F34 (2A) Unless paragraph (2C) [^F35 , (2D), [^F36 (2DA),^F36] (2E) [^F37 , (2F), (2H) or (2I)^F37,F35]] applies, for [^F38 a relevant year falling within the period beginning with 1st April 2017 and ending with 31st March 2026^F38] an authority’s individual levy rate is 0.5 or the figure calculated in accordance with the formula in paragraph (2B), whichever is less.

[^F39 (2B) The formula is—

(2C) For an authority listed in Part 1, 3, 5, 7 or 8 of Schedule 3, the individual levy rate for [^F41 a relevant year falling within the period beginning with 1st April 2017 and ending with 31st March 2026^F41] is zero.^F34]

[^F42 (2D) For an authority listed in Parts 9 to 19 in Schedule 3, [^F43 and a pool of authorities named within those Parts,^F43] the individual levy rate for the relevant year beginning on 1st April 2018 is zero.^F42]

[^F44 (2DA) For an authority listed in Parts 9 and 20 to 34 of Schedule 3, and a pool of authorities named in those Parts, the individual levy rate for a relevant year beginning on 1st April 2019 is zero.^F44]

[^F45 (2E) For an authority—

(a)listed in Part 6 of Schedule 3 (other than Coventry City Council); ^F46...

^F46(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

the individual levy rate for [^F47 a relevant year falling within the period beginning with 1st April 2019 and ending with 31st March 2026^F47] is zero.

(2F) For an authority listed in column A of the table in Schedule 5, for a relevant year beginning on ^F48... 1st April 2019 [^F49 , 1st April 2020, 1st April 2021 or 1st April 2022^F49] the authority's individual levy rate is 0.5 or the figure calculated in accordance with the formula in paragraph (2G), whichever is less.

(2G) The formula is—

[^F50 (2H) For an authority listed in Part 2 of Schedule 3, the individual levy rate for [^F51 a relevant year falling within the period beginning with 1st April 2021 and ending with 31st March 2026^F51] is zero.

(2I) For an authority listed in column A of the table in Schedule 6, for a relevant year beginning on [^F52 1st April 2021 or 1st April 2022^F52] , the authority’s individual levy rate is 0.5 or the figure calculated in accordance with the formula in paragraph (2J), whichever is less.

(2J) The formula is—

(3)[^F53 Subject to paragraph (3A), an authority’s^F53] safety net threshold for a year is 92.5 per cent of its baseline funding level for that year.

[^F54 (3A) For the relevant year beginning with 1st April 2026, an authority’s safety net threshold is 100% of its baseline funding level for that year.^F54]

[^F55 (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. ^F55]

Safety net on account_I6,I7

7.—(1) An authority may request that the Secretary of State calculate whether a safety net payment is likely to be required to be made to the authority in respect of the relevant year.

(2) A request must be accompanied by the authority’s estimate of its retained rates income for the relevant year and must be made—

(a)for the year commencing on 1st April 2013 by 15th April 2013; and

(b)for a year commencing on or after 1st April 2014 by 31st January in the preceding year.

(3) Where the Secretary of State calculates that a safety net payment is likely to be required to be made the Secretary of State must notify the authority and make a payment on account to the authority of the amount that is the difference between the authority’s estimate of its retained rates income for the relevant year and its safety net threshold for that year.

8.—(1) A payment on account is to be made in [^F5612^F56] instalments such that—

(a)the first instalment is payable on the 30th April; and

(b)the subsequent instalments are payable on the 19th day of each of the following [^F5711^F57] months starting in May.

[^F58 (2) The first four instalments are each to be of 9 per cent of the amount payable and each other instalment is to be 8 per cent of the amount payable.^F58]

(3) Where an instalment falls to be paid on a Friday or a day that is not a working day, it shall instead be payable on the first working day that is not a Friday following that day.

(4) For the purpose of this regulation “working day” means any day other than a Saturday, a Sunday, Christmas Day, Good Friday or a day which is a bank holiday in England under the Banking and Financial Dealings Act 1971 ( 6 ).

Requirement to make a safety net payment_I8

9.—(1) The Secretary of State must make a safety net payment to an authority in respect of a year where its retained rates income for the relevant year is less than its safety net threshold for that year.

(2) The amount of the payment is to be the difference between the authority’s retained rates income for the relevant year and its safety net threshold for that year.

(3) Where a payment on account has been made in respect of the relevant year an amount equal to that payment must be deducted from the amount payable under this regulation.

(4) Where the payment on account exceeds the amount payable under this regulation, the authority must pay the difference between the two amounts to the Secretary of State.

Requirement to make levy payment_I9

10.—(1) An authority must make a levy payment to the Secretary of State in respect of [^F59a relevant year ending on or before 31st March 2026^F59] where the following conditions are met—

(a)the authority’s individual levy rate is a positive number greater than zero; and

(b)the authority’s retained rates income for the relevant year is greater than its baseline funding level for that year.

(2) The amount of the levy payment [^F60under paragraph (1)^F60] is to be the amount calculated in accordance with the formula—

[^F61 (3) Subject to paragraph (8), an authority must make a levy payment to the Secretary of State in respect of a relevant year beginning on or after 1st April 2026 if its retained rates income for the year is greater than its baseline funding level for the year.

(4) The amount of the levy payment under paragraph (3) is the sum of the amounts calculated under paragraphs (5) to (7).

(5) The amount calculated under this paragraph is 10% of so much of an authority’s retained rates income which exceeds its baseline funding level but does not exceed its initial growth limit.

(6) The amount calculated under this paragraph is 30% of so much of an authority's retained rates income which exceeds its initial growth limit but does not exceed its further growth limit. 

(7) The amount calculated under this paragraph is 45% of so much of an authority’s retained rates income which exceeds its further growth limit.

(8) Paragraphs (3) to (7) do not apply to an authority listed in Parts 1 to 8 of Schedule 3 that is not part of a pool of authorities for the relevant year.

(9) In this regulation— 

(a)an authority’s initial growth limit is 110% of its baseline funding level;

(b)an authority’s further growth limit is 200% of its baseline funding level.^F61]

Regulation 4

SCHEDULE 1 Calculation of retained rates income

[^F62Application

A1. This Schedule applies in relation to a relevant year ending on or before 31st March 2026.^F62]

Calculation for billing authorities_I10

1.—(1) The retained rates income of an authority that is a billing authority is the amount calculated in accordance with the formula—

Where—

K is —

(i)

50% where the billing authority is a county council, or is a district council in an area for which there is no county council, and the authority is a fire and rescue authority;

(ii)

49% where the billing authority is a county council, or is a district council in an area for which there is no county council, and the authority is not a fire and rescue authority;

(iii)

40% where the billing authority is a district council in an area for which there is a county council; and

(iv)

30% where the billing authority is a London borough council or the Common Council of the City of London;

L is the authority’s certified non-domestic rating income for the relevant year;

M is the amount calculated in accordance with sub-paragraph (2);

N is the amount calculated in accordance with sub-paragraph (3);

O is the amount calculated in accordance with sub-paragraph (4);

[^F64 P is—

(a)

unless paragraph (b) [^F65 , (c) [^F66 , (d) [^F67 , (e), (f) [^F68 , (g) [^F69 , (h) or (i)^{F69,F68,F67,F66,F65}]]]]] of this definition applies, the amount paid to the authority by the Secretary of State for the relevant year in accordance with Part 5 of Schedule 7B to the 1988 Act (principal payments in connection with local retention of non-domestic rates);

(b)

[^F70 for the relevant year beginning on 1st April 2017, the amount specified for that authority in column C of Schedule 4;

(c)

for the relevant year beginning on 1st April 2018, the amount specified for that authority in column E of Schedule 4;^F70]

(d)

[^F71 where the billing authority is listed in Parts [^F72 2 to 9 or^F72] 20 to 34 of Schedule 3, for the relevant year beginning on 1st April 2019, the amount calculated for that authority in accordance with the formula—

where—

A is the amount specified for that authority in column E of Schedule 4;

B is the small business non-domestic rating multiplier in relation to the year beginning on 1st April 2019; and

C is the small business non-domestic rating multiplier in relation to the year beginning on 1st April 2018;^F71]

(e)

[^F73 where the billing authority is listed in Parts 2 to 8 of Schedule 3, for the relevant year beginning on 1st April 2020, the amount calculated for that authority in accordance with the formula—

where—

• A is the amount specified for that authority in column E of Schedule 4;

• B is the small business non-domestic rating multiplier in relation to the year beginning on 1st April 2020; and

• C is the small business non-domestic rating multiplier in relation to the year beginning on 1st April 2018;^F73]

(f)

[^F74 where the billing authority is listed in Parts 2 to 8 of Schedule 3, for the relevant year beginning on 1st April 2021, the amount calculated for that authority in accordance with the formula—

where—

• A is the amount specified for that authority in column E of the table in Schedule 4;

• B is the small business non-domestic rating multiplier in relation to the year beginning on 1st April 2021; and

• C is the small business non-domestic rating multiplier in relation to the year beginning on 1st April 2018;

(g)

where the billing authority is listed in Parts 2 to 8 of Schedule 3, for the relevant year beginning on 1st April 2022, the amount calculated for that authority in accordance with the formula—

where—

• A is the amount specified for that authority in column E of the table in Schedule 4;

• B is the small business non-domestic rating multiplier in relation to the year beginning on 1st April 2022; and

• C is the small business non-domestic rating multiplier in relation to the year beginning on 1st April 2018;^F74]

(h)

[^F75 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)

[^F76 for—

(i)

the relevant year beginning on 1st April 2024;

(ii)

the relevant year beginning on 1st April 2025 where the billing authority is listed in Parts 2 to 8 of Schedule 3,

the amount calculated for that authority in accordance with the formula—^F76]

where—

A is P 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;^F75]

Q is—

(a)

unless paragraph (b) [^F77 , (c) [^F78 , (d) [^F79 , (e), (f) [^F80 , (g) [^F81 , (h) or (i)^{F81,F80,F79,F78,F77}]]]]] of this definition applies, the amount paid by the authority to the Secretary of State for the relevant year in accordance with Part 5 of Schedule 7B to the 1988 Act;

(b)

[^F82 for the relevant year beginning on 1st April 2017, the amount specified for that authority in column D of Schedule 4;

(c)

for the relevant year beginning on 1st April 2018, the amount specified for that authority in column F of Schedule 4; ^F83...^F82]

(d)

[^F84 where the billing authority is listed in Parts [^F85 2 to 9 or^F85] 20 to 34 of Schedule 3, for the relevant year beginning on 1st April 2019, the amount calculated for that authority in accordance with the formula—

where—

• A is—

  (a)

  subject to paragraph (b), the amount specified for that authority in column F of Schedule 4;

  (b)

  for Somerset West and Taunton Council, £17,694,364;

• B is the small business non-domestic rating multiplier in relation to the year beginning on 1st April 2019; and

• C is the small business non-domestic rating multiplier in relation to the year beginning on 1st April 2018;^F84]

(e)

[^F73 where the billing authority is listed in Parts 2 to 8 of Schedule 3, for the relevant year beginning on 1st April 2020, the amount calculated for that authority in accordance with the formula—

where—

• A is the amount specified for that authority in column F of Schedule 4;

• B is the small business non-domestic rating multiplier in relation to the year beginning on 1st April 2020; and

• C is the small business non-domestic rating multiplier in relation to the year beginning on 1st April 2018;^F73]

(f)

[^F86 where the billing authority is listed in Parts 2 to 8 of Schedule 3, for the relevant year beginning on 1st April 2021, the amount calculated for that authority in accordance with the formula—

where—

• A is the amount specified for that authority in column F of the table in Schedule 4;

• B is the small business non-domestic rating multiplier in relation to the year beginning on 1st April 2021; and

• C is the small business non-domestic rating multiplier in relation to the year beginning on 1st April 2018;

(g)

where the billing authority is listed in Parts 2 to 8 of Schedule 3, for the relevant year beginning on 1st April 2022, the amount calculated for that authority in accordance with the formula—

where—

• A is the amount specified for that authority in column F of the table in Schedule 4

• B is the small business non-domestic rating multiplier in relation to the year beginning on 1st April 2022; and

• C is the small business non-domestic rating multiplier in relation to the year beginning on 1st April 2018;^F86]

(h)

[^F87 for the relevant year beginning on 1st April 2023, the amount specified for the authority in column C of the table in Schedule 7;

(i)

[^F88 for—

(i)

the relevant year beginning on 1st April 2024;

(ii)

the relevant year beginning on 1st April 2025 where the billing authority is listed in Parts 2 to 8 of Schedule 3,

the amount calculated for that authority in accordance with the formula—^F88]

where—

A is Q 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;^F87]

[^F89 S is the amount calculated in accordance with sub-paragraph (4D) in respect of the years commencing on or after 1st April 2021;^F89]

T is the amount calculated in accordance with sub-paragraph (4A) in respect of the years commencing on [^F90 or after 1st April 2013^F90] ; ^F91[^F92 ...

[^F93 U is the amount calculated in accordance with sub-paragraph (4C) in respect of a relevant year; ^F94...^F93]

[^F95 V is—

(a)

for the years commencing on or after 1st April 2024, the amount calculated in accordance with sub-paragraph (4E);

(b)

for any other year, zero;

W is—

(a)

for the years commencing on or after 1st April 2024, the amount calculated in accordance with sub-paragraph (4F);

(b)

for any other year, zero;^F95]

Y is—

(a)

for the relevant years beginning on 1st April 2013, 1st April 2014, 1st April 2015 and 1st April 2016, zero;

(b)

unless paragraph (c) [^F96 or (d)^F96] applies, for a relevant year beginning on or after 1st April 2017, the amount specified for that authority in column H of Schedule 4;

(c)

for an authority listed in column A of Schedule 5, for a relevant year beginning on or after 1st April 2019, the amount specified for that authority in column E of Schedule 5.^F92]

(d)

[^F97 for an authority listed in column A of the table in Schedule 6, for a relevant year beginning on or after the date specified in respect of that authority in column B of that table, the amount specified for that authority in column F of [^F98 that table;^F98,F97]]

[^F99 Z is—

(a)

for the years commencing on or after 1st April 2024, the amount calculated in accordance with sub-paragraph (4G);

(b)

for any other year, zero;

Z1 is—

(a)

for the year beginning on 1st April 2022, the amount specified for the authority in column B of Schedule 6A;

(b)

for a year beginning on or after 1st April 2023, the amount specified for the authority in column E of Schedule 7;

(c)

for any other year, zero.^F99]

^F100(1A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2) The amount calculated in accordance with this sub-paragraph is the amount which is the total of—

(a)the amounts credited to the billing authority’s collection fund income and expenditure account in the relevant year in accordance with proper practices in respect of non-domestic rates payable under sections 43 and 45 of the 1988 Act; less

(b)the amounts charged to the billing authority’s collection fund income and expenditure account in the relevant year in accordance with proper practices in respect of non-domestic rates payable under sections 43 and 45 of the 1988 Act.

(3) The amount calculated in accordance with this sub-paragraph is the amount that would have been calculated in accordance with sub-paragraph (2) if, in respect of any day in the relevant year or any day in a preceding year, any determination under section 47 or reduction or remission under section 49 of the 1988 Act had not been made.

(4) The amount calculated in accordance with this sub-paragraph is the amount which is the total of—

(a)the difference between the amount calculated in accordance with sub-paragraph (3) and the amount which would be so calculated if a determination under section 47 of the 1988 Act where one or more of the following applies in relation to the hereditament to which the determination relates were taken into account—

(i)the ratepayer is a charity or trustees for a charity, and the hereditament is wholly or mainly used for charitable purposes (whether of that charity or of that and other charities); or

(ii)the ratepayer is a registered club for the purposes of Chapter 9 of Part 13 of the Corporation Tax Act 2010(7) (community amateur sports clubs) and the hereditament is not an excepted hereditament and is wholly or mainly used—

(aa)for the purposes of that club; or

(bb)for the purposes of that club and of other such registered clubs;

(b)the difference between the amount calculated in accordance with sub-paragraph (3) and the amount which would be so calculated if a determination under section 47 of the 1988 Act where one or more of the following applies in relation to the hereditament to which the determination relates were taken in to account—

(i)the hereditament is not an excepted hereditament, and all or part of it is occupied for the purposes of one or more institutions or other organisations none of which is established or conducted for profit and each of whose main objects are charitable or are otherwise philanthropic or religious or concerned with education, social welfare, science, literature or the fine arts;

(ii)the hereditament is not an excepted hereditament, it is wholly or mainly used for purposes of recreation, and all or part of it is occupied for the purposes of a club, society or other organisation not established or conducted for profit;

(iii)the hereditament meets the following conditions—

(aa)that the hereditament is within a settlement identified in the billing authority’s rural settlement list for the relevant year; and

(bb)that the rateable value of the hereditament shown in the local non-domestic rating list at the beginning of the relevant year is not more than £16,500;

(c)the difference between the amount calculated in accordance with sub-paragraph (3) and the amount which would be so calculated if, in respect of any day in the relevant year or any day in a preceding year, any reduction or remission by the authority under section 49 of the Act were taken into account; and

[^F101 (d)the difference between the amount calculated in accordance with sub-paragraph (3) and the amount which would be so calculated if a determination under section 47 of the 1988 Act were taken into account where the determination relates to a ^F102... Case B hereditament within the meaning of paragraph 1 of Schedule 2 to the Non-Domestic Rating (Rates Retention) Regulations 2013 and the conditions in paragraph 1(2) of that Schedule are met.^F101]

[^F103 (4A) The amount calculated in accordance with this sub-paragraph is [^F104 A%^F104] of the amount which is the difference between—

(a)(i)the total of the amounts credited to the billing authority’s collection fund income and expenditure account in the specified year in accordance with proper practices in respect of non-domestic rates payable under sections 43 and 45 of the 1988 Act in respect of a day in that year [^F105 and in respect of a day in a previous year (disregarding days prior to 1st April 2013) where the amount was not credited in a previous year^F105] ; less

(ii)the total of the amounts charged to the billing authority’s collection fund income and expenditure account in the specified year in accordance with proper practices in respect of non-domestic rates payable under sections 43 and 45 of the 1988 Act in respect of a day in that year [^F106 and in respect of a day in a previous year (disregarding days prior to 1st April 2013) where the amount was not charged in a previous year^F106] ; and

(b)the amount that would have been calculated under paragraph (a) if [^F107 paragraph 4 of Schedule 4ZA to^F107] the 1988 Act were omitted.^F103]

[^F108 (4B) For the purpose of sub-paragraph (4A), A is—

(a)for the relevant years beginning on 1st April 2013, 1st April 2014, 1st April 2015 and 1st April 2016, 50;

(b)[^F109 unless paragraph (c) [^F110 , (d) or (e) applies^F110] ,^F109] for a relevant year beginning on or after 1st April 2017, the amount specified for that authority in column G of Schedule 4;^F108]

[^F111 (c)for an authority listed in column A of Schedule 5, for a relevant year beginning on or after 1st April 2019, the amount specified for that authority in column D of Schedule 5.^F111]

[^F112 (d)for Buckinghamshire Council, for a relevant year beginning on or after 1st April 2020, 71.6%.^F112]

[^F113 (e)for an authority listed in column A of the table in Schedule 6, for a relevant year beginning on or after the date specified in respect of that authority in column B of that table, the percentage specified for that authority in column E of that table.^F113]

[^F114 (4C) The amount calculated in accordance with this sub-paragraph is the amount which is the difference between—

(a)(i)the total of the amounts credited to the billing authority’s collection fund income and expenditure account in the relevant year in accordance with proper practices in respect of non-domestic rates payable under sections 43 and 45 of the 1988 Act in respect of—

(aa)a day in that year, and

(bb)a day in a previous year where the amount was not credited in a previous year; less

(ii)the total of the amounts charged to the billing authority’s collection fund income and expenditure account in the relevant year in accordance with proper practices in respect of non-domestic rates payable under sections 43 and 45 of the 1988 Act in respect of —

(aa)a day in that year, and

(bb)a day in a previous year where the amount was not charged in a previous year; and

(b)the amount that would have been calculated under paragraph (a) if section 43(4E) were omitted.^F114]

[^F115 (4D) The amount calculated in accordance with this sub-paragraph is the amount which is the difference between—

(a)(i)the total of the amounts credited to the billing authority’s collection fund income and expenditure account in the relevant year in accordance with proper practices in respect of non-domestic rates payable under sections 43 and 45 of the 1988 Act in respect of—

(aa)a day in that year, and

(bb)a day in a previous year where the amount was not credited in a previous year; less

(ii)the total of the amounts charged to the billing authority’s collection fund income and expenditure account in the relevant year in accordance with proper practices in respect of non-domestic rates payable under sections 43 and 45 of the 1988 Act in respect of—

(aa)a day in that year, and

(bb)a day in a previous year where the amount was not charged in a previous year; and

(b)the amount that would have been calculated under paragraph (a) if [^F116 paragraph 7 of Schedule 4ZA to the 1988 Act^F116] were omitted.^F115]

[^F117 (4E) The amount calculated in accordance with this sub-paragraph is the amount which is the difference between—

(a)(i)the total of the amounts credited to the billing authority’s collection fund income and expenditure account in the relevant year in accordance with proper practices in respect of non-domestic rates payable under sections 43 and 45 of the 1988 Act in respect of—

(aa)a day in that year, and

(bb)a day in a previous year where the amount was not credited in a previous year; less

(ii)the total of the amounts charged to the billing authority’s collection fund income and expenditure account in the relevant year in accordance with proper practices in respect of non-domestic rates payable under sections 43 and 45 of the 1988 Act in respect of—

(aa)a day in that year, and

(bb)a day in a previous year where the amount was not charged in a previous year; and

(b)the amount that would have been calculated under paragraph (a) if for paragraph 10(2) of Schedule 4ZA to the 1988 Act there were substituted—

“(2) “A” is the rateable value shown for the day under section 42(4) as regards the hereditament.”.

(4F) The amount calculated in accordance with this sub-paragraph is 50% of the amount which is the difference between—

(a)(i)the total of the amounts credited to the billing authority’s collection fund income and expenditure account in the relevant year in accordance with proper practices in respect of non-domestic rates payable under sections 43 and 45 of the 1988 Act in respect of—

(aa)a day in that year, and

(bb)a day in a previous year where the amount was not credited in a previous year; less

(ii)the total of the amounts charged to the billing authority’s collection fund income and expenditure account in the relevant year in accordance with proper practices in respect of non-domestic rates payable under sections 43 and 45 of the 1988 Act in respect of—

(aa)a day in that year, and

(bb)a day in a previous year where the amount was not charged in a previous year; and

(b)the amount that would have been calculated under paragraph (a) if paragraph 8 of Schedule 4ZA to the 1988 Act (rural rate relief) were omitted.

(4G) The amount calculated in accordance with this sub-paragraph is the amount which is the difference between—

(a)(i)the total of the amounts credited to the billing authority’s collection fund income and expenditure account in the relevant year in accordance with proper practices in respect of non-domestic rates payable under sections 43 and 45 of the 1988 Act in respect of—

(aa)a day in that year, and

(bb)a day in a previous year where the amount was not credited in a previous year; less

(ii)the total of the amounts charged to the billing authority’s collection fund income and expenditure account in the relevant year in accordance with proper practices in respect of non-domestic rates payable under sections 43 and 45 of the 1988 Act in respect of—

(aa)a day in that year, and

(bb)a day in a previous year where the amount was not charged in a previous year; and

(b)the amount that would have been calculated under paragraph (a) if paragraph 6 of Schedule 4ZA to the 1988 Act (heat networks rate relief) were omitted.^F117]

(5) For the purposes of this paragraph “excepted hereditament” has the meaning given by section 47(9) of the 1988 Act.

[^F118 1A. In calculating the values in paragraph 1(2), (3), (4) and (4A) there is to be disregarded in relation to the billing authority and for each relevant year the proportion of the authority’s non-domestic rating income calculated in respect of an area which has been designated in regulations made under paragraph 39(1) of Schedule 7B to the Local Government Finance Act 1998 within which all or part of the authority’s area falls.^F118,F64]]

Calculation for major precepting authorities_I11

2. The retained rates income of an authority that is a major precepting authority is the amount calculated in accordance with the formula—

Where—

R is the sum of the certified non-domestic rating income of all billing authorities required to make payments to the major precepting authority for the relevant year under Part 4 of Schedule 7B to the 1988 Act (payments by billing authorities to major precepting authorities);

S is—

(i)

10% where the relevant authority is a county council which is a fire and rescue authority;

(ii)

9% where the relevant authority is a county council which is not a fire and rescue authority;

(iii)

[^F120 unless paragraph (iiia) applies,^F120] 20% where the relevant authority is the Greater London Authority;

(iiia)

[^F121 for a relevant year commencing on [^F122 1st April 2017, 1st April 2018, 1st April 2019, 1st April 2020 or 1st April 2021^F122] , 37% where the relevant authority is the Greater London Authority; ^F121]

(iv)

1% where the relevant authority is a fire and rescue authority not falling within paragraph [^F123(i)^F123] ;

[^F124 P is—

(a)

unless paragraph (b), (c) [^F125 , (d), (e) or (f)^F125] of this definition applies, the amount paid to the authority by the Secretary of State for the relevant year in accordance with Part 5 of Schedule 7B to the 1988 Act (principal payments in connection with local retention of non-domestic rates);

(b)

for the relevant year beginning on 1st April 2017, the amount specified for that authority in column C of Schedule 4;

(c)

for the relevant year beginning on 1st April 2018, the amount specified for that authority in column E of Schedule 4; and

(d)

where the major precepting authority is listed in Parts [^F126 9 and 20^F126] to 34 of Schedule 3, for the relevant year beginning on 1st April 2019, the amount calculated for that authority in accordance with the formula—

where— A is—

(a)

subject to paragraph (b), the amount specified for that authority in column E of Schedule 4;

(b)

for Northamptonshire County Council, £60,927,097;

B is the small business non-domestic rating multiplier in relation to the year commencing on 1st April 2019; and

C is the small business non-domestic rating multiplier in relation to the year commencing on 1st April 2018;

(e)

[^F127 for the relevant year beginning on 1st April 2023, the amount specified for the authority in column B of the table in Schedule 7;

(f)

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 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 lists of all billing authorities in relation to the authority on 1st April 2023;

E is the sum of the total rateable value of standard hereditaments shown in the lists of all billing authorities in relation to the authority on 1st April 2023;^F127]

Q is—

(a)

unless paragraph (b), (c) [^F128 , (d), (e) or (f)^F128] of this definition applies, the amount paid to the authority by the Secretary of State for the relevant year in accordance with Part 5 of Schedule 7B to the 1988 Act (principal payments in connection with local retention of non-domestic rates);

(b)

for the relevant year beginning on 1st April 2017, the amount specified for that authority in column D of Schedule 4;

(c)

for the relevant year beginning on 1st April 2018, the amount specified for that authority in column F of Schedule 4; and

(d)

where the major precepting authority is listed in Parts [^F129 9 and 20^F129] to 34 of Schedule 3, for the relevant year beginning on 1st April 2019, the amount calculated for that authority in accordance with the formula—

where—

A is the amount specified for that authority in column F of Schedule 4;

B is the small business non-domestic rating multiplier in relation to the year commencing on 1st April 2019; and

C is the small business non-domestic rating multiplier in relation to the year commencing on 1st April 2018;^F124]

(e)

[^F130 for the relevant year beginning on 1st April 2023, the amount specified for the authority in column C of the table in Schedule 7;

(f)

[^F131 for—

(i)

the relevant year beginning on 1st April 2024;

(ii)

the relevant year beginning on 1st April 2025 where the relevant authority is the Greater London Authority,

the amount calculated for that authority in accordance with the formula—^F131]

where—

A is Q 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 lists of all billing authorities in relation to the authority on 1st April 2023;

E is the sum of the total rateable value of standard hereditaments shown in the lists of all billing authorities in relation to the authority on 1st April 2023;^F130]

^F132 ...

[^F133 U is, in respect of the years commencing on [^F134 or after 1st April 2013^F134] , the sum of the amounts calculated in accordance with paragraph 1(4A) for each of the billing authorities that is required to make payments to the major precepting authority for the relevant year under Part 4 of Schedule 7B to the 1988 Act ^F135...^F133]

[^F136 V is the sum of the amounts calculated in accordance with paragraph 1(4C) for each of the billing authorities that is required to make payments to the major precepting authority for the relevant year under Part 4 of Schedule 7B to the 1988 Act; ^F137...^F136]

[^F138 W is—

(a)

for the relevant year beginning on 1st April 2020, the amount calculated for that authority in accordance with the formula—

where—

• A is the sum of the amounts of relief awarded under section 47 of the 1988 Act by all the billing authorities required to make payments to the major precepting authority for the relevant year under Part 4 of Schedule 7B to the 1988 Act, where the relief has been awarded in accordance with the following guidance issued by the Secretary of State—

  (i)

  “Expanded Retail Discount 2020/2021: Coronavirus Response – Local Authority Guidance” published on 2nd April 2020, updating guidance published on 30th November 2018;

  (ii)

  “Nursery Discount 2020/2021: Coronavirus Response – Local Authority Guidance” published on 2nd April 2020, updating guidance published on 20th March 2020, excluding amounts of any such relief awarded in a designated area; and

  (iii)

  Annex A of “The case for a Business Rates Relief for local newspapers –Government Response”, published on 8th July 2015 and updated on 2nd December 2016, extended until 31st March 2025 by a Written Ministerial Statement on 27 January 2020 from the Financial Secretary to the Treasury;

• B is the sum of the estimates, made by all billing authorities required to make payments to the major precepting authority for the relevant year under Part 4 of Schedule 7B to the 1988 Act, as part of their calculation of non-domestic rating income for the year beginning 1st April 2020, of the amount of relief awarded under section 47 of the 1988 Act in accordance with the guidance issued by the Secretary of State entitled “Retail Discount 2020/21 – Local Authority Guidance” published on 27 January 2020;

(b)

for the relevant year beginning on 1st April 2021, the sum of the amounts of relief awarded under section 47 of the 1988 Act by all the billing authorities required to make payments to the major precepting authority for the relevant year under Part 4 of Schedule 7B to the 1988 Act, where the relief has been awarded in accordance with the following guidance issued by the Secretary of State—

(i)

“Business rates: expanded retail discount 2021 to 2022 – local authority guidance” published on 4th March 2021;

(ii)

“Business rates: nursery (childcare) discount 2021 to 2022 – local authority guidance” published on 4th March 2021; and

(iii)

“COVID-19 Additional Relief Fund (CARF): Local Authority Guidance” published on 15th December 2021. ^F138]

(c)

[^F139 for the relevant year beginning on 1st April 2022, the sum of the amounts of relief awarded under section 47 of the 1988 Act by all the billing authorities required to make payments to the major precepting authority for the relevant year under Part 4 of Schedule 7B to the 1988 Act, where the relief has been awarded in accordance with the following guidance issued by the Secretary of State—

(i)

“COVID-19 Additional Relief Fund (CARF): Local Authority Guidance” published on 15th December 2021;

(ii)

“2022/23 Retail, Hospitality and Leisure Relief Scheme: local authority guidance” published on 20th December 2021;

(iii)

“Extension of Transitional Relief and Supporting Small Business Relief for small and medium properties” published on 20th December 2021;

(d)

for the relevant year beginning on 1st April 2023, the sum of the amounts of relief awarded under section 47 of the 1988 Act by all the billing authorities required to make payments to the major precepting authority for the relevant year under Part 4 of Schedule 7B to the 1988 Act, where the relief has been awarded in accordance with the following guidance issued by the Secretary of State—

(i)

“Business Rates Relief: 2023/24 Retail, Hospitality and Leisure Scheme” published on 21 December 2022, and

(ii)

“Business Rates Relief: 2023 Supporting Small Business Relief, local authority guidance” published on 21 December 2022; ^F139]

(e)

[^F140 for the relevant year beginning on 1st April 2024, the sum of the amounts of relief awarded under section 47 of the 1988 Act by all the billing authorities required to make payments to the major precepting authority for the relevant year under Part 4 of Schedule 7B to the 1988 Act, where the relief has been awarded in accordance with the following guidance issued by the Secretary of State—

(i)

“Business Rates Relief: 2023 Supporting Small Business Relief, local authority guidance” published on 21 December 2022, or

(ii)

“Business Rates Relief: 2024/25 Retail, Hospitality and Leisure Scheme” published on 15 December 2023; ^F140]

(f)

[^F141 for the relevant year beginning on 1st April 2025, the sum of the amounts of relief awarded under section 47 of the 1988 Act by all the billing authorities required to make payments to the major precepting authority for the relevant year under Part 4 of Schedule 7B to the 1988 Act, where the relief has been awarded in accordance with the following guidance issued by the Secretary of State—

(i)

“Business Rates Relief: 2023 Supporting Small Business Relief, local authority guidance” published on 21 December 2022,

(ii)

“Business Rates Relief: 2025/26 Retail, Hospitality and Leisure Scheme” published on 16 January 2025; ^F141]

[^F142 Y is the sum of the amounts specified as S [^F143 , V, W and Z^F143] for the relevant year in accordance with paragraph 1(1) for each of the billing authorities that is required to make payments to the major precepting authority for the relevant year under Part 4 of Schedule 7B to the 1988 Act;^F142]

^F144[^F145 ... Z is—

(a)

for the relevant years beginning on 1st April 2013, 1st April 2014, 1st April 2015 and 1st April 2016, zero;

(b)

for a relevant year beginning on or after 1st April 2017, the sum of the amounts specified as Y for the relevant year in accordance with paragraph 1(1) for each of the billing authorities that is required to make payments to the major precepting authority for the relevant year under Part 4 of Schedule 7B to the [^F146 1988 Act;^F146,F145]]

[^F147 Z1 is—

(a)

for the year beginning on 1st April 2022, the amount specified for the authority in column B of Schedule 6A;

(b)

for a year beginning on or after 1st April 2023, the amount specified for the authority in column E of Schedule 7.^F147]

Calculation for pools_I12

3. The retained rates income of a relevant authority that is a pool of authorities is the sum of the retained rates income of all the authorities in the pool.

Regulation 4

[^F148Schedule 1ZA Calculation of Retained Rates Income for the Financial Years beginning on or after 1st April 2026

Application

1. This Schedule applies in relation to a relevant year beginning on or after 1st April 2026.

Calculation for billing authorities

2.—(1) The retained rates income of a billing authority is the amount calculated in accordance with the formula—

(2) The amount calculated in accordance with this sub-paragraph is the amount which is the total of—

(a)the amounts credited to the billing authority’s collection fund income and expenditure account in the relevant year in accordance with proper practices in respect of non-domestic rates payable under sections 43 and 45 of the 1988 Act; less

(b)the amounts charged to the billing authority’s collection fund income and expenditure account in the relevant year in accordance with proper practices in respect of non-domestic rates payable under sections 43 and 45 of the 1988 Act.

(3) The amount calculated in accordance with this sub-paragraph is the amount that would have been calculated in accordance with sub-paragraph (2) if, in respect of any day in the relevant year or any day in a preceding year, any determination under section 47 or reduction or remission under section 49 of the 1988 Act had not been made.

(4) The amount calculated in accordance with this sub-paragraph is the amount which is the total of—

(a)the difference between the amount calculated in accordance with sub-paragraph (3) and the amount which would be so calculated if a determination under section 47 of the 1988 Act where one or more of the following applies in relation to the hereditament to which the determination relates were taken into account—

(i)the ratepayer is a charity or trustees for a charity, and the hereditament is wholly or mainly used for charitable purposes (whether of that charity or of that and other charities); or

(ii)the ratepayer is a registered club for the purposes of Chapter 9 of Part 13 of the Corporation Tax Act 2010(7) (community amateur sports clubs) and the hereditament is not an excepted hereditament and is wholly or mainly used—

(aa)for the purposes of that club; or

(bb)for the purposes of that club and of other such registered clubs;

(b)the difference between the amount calculated in accordance with sub-paragraph (3) and the amount which would be so calculated if a determination under section 47 of the 1988 Act where one or more of the following applies in relation to the hereditament to which the determination relates were taken into account—

(i)the hereditament is not an excepted hereditament, and all or part of it is occupied for the purposes of one or more institutions or other organisations none of which is established or conducted for profit and each of whose main objects are charitable or are otherwise philanthropic or religious or concerned with education, social welfare, science, literature or the fine arts;

(ii)the hereditament is not an excepted hereditament, it is wholly or mainly used for purposes of recreation, and all or part of it is occupied for the purposes of a club, society or other organisation not established or conducted for profit;

(iii)the hereditament meets the following conditions—

(aa)that the hereditament is within a settlement identified in the billing authority's rural settlement list for the relevant year; and

(bb)that the rateable value of the hereditament shown in the local non-domestic rating list at the beginning of the relevant year is not more than £16,500;

(c)the difference between the amount calculated in accordance with sub-paragraph (3) and the amount which would be so calculated if, in respect of any day in the relevant year or any day in a preceding year, any reduction or remission by the authority under section 49 of the Act were taken into account; and

(d)the amount of any grant paid to the authority under section 31 of the Local Government Act 2003 in relation to any determination by the authority under section 47 of the 1988 Act in respect of any day in the relevant year or any day in a preceding year.

(5) In calculating the values in paragraphs (2) to (4) there is to be disregarded in relation to the billing authority and for each relevant year the proportion of the authority’s non-domestic rating income calculated in respect of an area which has been designated in regulations made under paragraph 39(1) of Schedule 7B to the 1988 Act within which all or part of the authority’s area falls.

(6) For the purposes of this paragraph “ excepted hereditament ” has the meaning given by section 47(9) of the 1988 Act.

Calculation for major precepting authorities

3. The retained rates income of an authority that is a major precepting authority is the amount calculated in accordance with the formula—

Calculation for pools

4. The retained rates income of a relevant authority that is a pool of authorities is the sum of the retained rates income of all the authorities in the pool.^F148]

Regulation 4

[^F149SCHEDULE 1A Special provision for the calculation of retained rates income for the financial years beginning on 1st April 2013, 1st April 2014, 1st April 2015, 1st April 2016 and 1st April 2017

Interpretation

1. In this Schedule—

“the 2003 Regulations ” means the Local Authorities (Capital Finance and Accounting) (England) Regulations 2003 ;

“the 2013 Regulations ” means the Non-Domestic Rating (Rates Retention) Regulations 2013 ;

“end of year calculations” means the calculation of non-domestic rating income that a billing authority is required to make in accordance with regulation 9(1)(a) of, and paragraph 1 of Schedule 1 to, the 2013 Regulations for the relevant year;

“refunds in respect of previous years” means amounts to be repaid to ratepayers as a consequence of an alteration to a list in accordance with regulations made under section 55 of the 1988 Act in respect of a year prior to the year beginning on 1st April 2013;

“relevant proportion” means the relevant proportion of the provision for refunds in respect of previous years that a billing authority included in its calculation of surplus or deficit on the collection fund for the relevant year beginning on 1st April 2014, in accordance with paragraph 1A of Schedule 4 to the 2013 Regulations ;

“relevant provision” means provision made by an authority to recognise amounts to be repaid to ratepayers as a consequence of an alteration to a list in accordance with regulations made under section 55 of the 1988 Act;

“relevant year” means the year for which a calculation of non-domestic rating income or of a payment is being made in accordance with the 2013 Regulations ; and

“surplus or deficit with respect to non-domestic rates” means the billing authority’s estimate as to whether there is a surplus or deficit with respect to non-domestic rates in its collection fund for the preceding year calculated in accordance with regulation 13 of, and paragraph 1 of Schedule 4 to, the 2013 Regulations .

Application of Schedule

2. This Schedule applies where—

(a)a billing authority—

(i)in its calculation under regulation 3 of _dfnthe 2013 Regulations (calculation of non domestic income) of the amount specified by paragraph 1 of Schedule 1 to those Regulations, for the year beginning on 1st April 2013, spread its provision for refunds in respect of previous years over a 5 year period; and

(ii)in its calculation of the surplus or deficit with respect to non domestic rates for the relevant year beginning on 1st April 2014 included in the amount specified by paragraph 1(3) of Schedule 4 to the 2013 Regulations an amount equal to the relevant proportion;

(b)a billing authority in accordance with regulation 30J(2) of the 2003 Regulations credited to a revenue account an amount equal to 80% of the amount of the relevant provision;

(c)a major precepting authority, in accordance with proper practices, was required to recognise a relevant provision in a revenue account for the financial year beginning on 1st April 2013 and in accordance with regulation 30J(3) of the 2003 Regulations credited to a revenue account an amount equal to 80% of the amount found in accordance with paragraph (4) of that regulation;

(d)a major precepting authority, in accordance with proper practices, was required to recognise a relevant provision in a revenue account for the financial year beginning on 1st April 2013 and a billing authority from whom the major precepting authority received non-domestic rating income for that year, in accordance with regulations 5(2), 6(2) or 14(1) of the 2013 Regulations, included in its calculation of surplus or deficit on the collection fund for the financial year beginning on 1st April 2014 an amount in accordance with paragraph 1A of Schedule 4 to those Regulations.

Calculation for billing authorities for the financial year beginning on 1st April 2013

3.—(1) This paragraph has effect in respect of the financial year beginning on 1st April 2013.

(2) For the purposes of regulation 9 (requirement to make a safety net payment) and regulation 10 (requirement to make a levy payment) the retained rates income for the financial year beginning on 1st April 2013 of an authority that is a billing authority is calculated by adding to the amount calculated in accordance with paragraph 1 of Schedule 1 the amount calculated in accordance with the formula—

Calculation for billing authorities for the financial years beginning on 1st April 2014, 1st April 2015, 1st April 2016 and 1st April 2017

4.—(1) This paragraph has effect in respect of the financial years beginning on 1st April 2014, 1st April 2015, 1st April 2016 and 1st April 2017.

(2) For the purposes of regulations 9 and 10, the retained rates income for the financial years beginning on 1st April 2014 of an authority that is a billing authority is calculated by deducting from the amount calculated in accordance with paragraph 1 of Schedule 1 the amount calculated in accordance with the formula—

(3) For the purposes of regulation 7 (safety net on account) and regulations 9 and 10, the retained rates income for the financial years beginning on 1st April 2015, 1st April 2016 and 1st April 2017 of an authority that is a billing authority is calculated by deducting from the amount calculated in accordance with paragraph 1 of Schedule 1 the amount calculated in accordance with subparagraph (2).

Calculation for major precepting authorities for the financial year beginning on 1st April 2013

5.—(1) This paragraph has effect in respect of the financial year beginning on 1st April 2013 if the circumstances mentioned in paragraph 2(c) alone applies or if the circumstances mentioned in paragraph 2(c) and (d) both apply.

(2) For the purposes of regulations 9 and 10, the retained rates income for the financial year beginning on 1st April 2013 of an authority that is a major precepting authority is calculated by adding to the amount calculated in accordance with paragraph 2 of Schedule 1 the amount calculated in accordance with the formula—

6.—(1) This paragraph has effect in respect of the financial year beginning on 1st April 2013 if the circumstances mentioned in paragraph 2(d) alone apply.

(2) For the purposes of regulations 9 and 10, the retained rates income for the financial year beginning on 1st April 2013 of an authority that is a major precepting authority is calculated by adding to the amount calculated in accordance with paragraph 2 of Schedule 1 the amount calculated in accordance with the formula—

Calculation for major precepting authorities for the financial years beginning on 1st April 2014, 1st April 2015, 1st April 2016 and 1st April 2017

7.—(1) This paragraph has effect in respect of the financial years beginning on 1st April 2014, 1st April 2015, 1st April 2016 and 1st April 2017 if the circumstances in paragraph 2(c) alone applies or if the circumstances in paragraph 2(c) and (d) apply.

(2) For the purposes of regulations 9 and 10, the retained rates income for the financial year beginning on 1st April 2014 of an authority that is a major precepting authority is calculated by deducting from the amount calculated in accordance with paragraph 2 of Schedule 1 the amount calculated in accordance with the formula—

(3) For the purposes of regulations 7, 9 and 10, the retained rates income for the financial years beginning on 1st April 2015, 1st April 2016 and 1st April 2017 of an authority that is a major precepting authority is calculated by deducting from the amount calculated in accordance with paragraph 2 of Schedule 1 the amount calculated in accordance with subparagraph (2).

8.—(1) This paragraph has effect in respect of the financial years beginning on 1st April 2014, 1st April 2015, 1st April 2016 and 1st April 2017 if the circumstances in paragraph 2(d) alone apply.

(2) For the purposes of regulations 9 and 10, the retained rates income for the financial year beginning on 1st April 2014 of an authority that is a major precepting authority is calculated by deducting from the amount calculated in accordance with paragraph 2 of Schedule 1 the amount calculated in accordance with the formula—

(3) For the purposes of regulations 7, 9 and 10, the retained rates income for the financial years beginning on 1st April 2014, 1st April 2015, 1st April 2016 and 1st April 2017 of an authority that is a major precepting authority is calculated by deducting from the amount calculated in accordance with paragraph 2 of Schedule 1 the amount calculated in accordance with subparagraph (2).^F149]

Regulation 4

[^F150SCHEDULE 1B Special provision for the calculation of retained rates income for the financial year beginning on 1st April 2020

Interpretation

1. In this Schedule—

“ the 2003 Act ” means the Local Government Act 2003 ;

“ the 2013 Regulations ” means the Non-Domestic Rating (Rates Retention) Regulations 2013 ;

“ designated area ” means an area designated in accordance with regulations made under paragraph 39(1)(a) of Schedule 7B to the 1988 Act;

“ non-domestic rating income ” has the same meaning as in the 2013 Regulations;

“ relevant provision ” means a provision made by an authority, in accordance with proper practices, to recognise amounts to be repaid to ratepayers as a consequence of an alteration to a non-domestic rating list in accordance with regulations made under section 55 of the 1988 Act.

Application of Schedule

2. This Schedule applies to the calculation of retained rates income of billing authorities and major precepting authorities for the year beginning on 1st April 2020.

Formula values

3. For the purposes of paragraphs 4 and 5—

• A is—

  (a)

  100% where the billing authority is an authority mentioned in Part 6 of Schedule 5 to the 2013 Regulations;

  (b)

  99% where the billing authority is an authority mentioned in Parts 2 to 4 of Schedule 5 to the 2013 Regulations;

  (c)

  94% where the billing authority is an authority mentioned in Part 5 of Schedule 5 to the 2013 Regulations;

  (d)

  50% where the billing authority is a county council, or is a district council for an area for which there is no county council, and the authority is a fire and rescue authority (excepting any authority falling within (a) above);

  (e)

  49% where the billing authority is a county council, or is a district council for an area for which there is no county council, and the authority is not a fire and rescue authority (excepting any authority falling within (b) or (c) above);

  (f)

  40% where the billing authority is a district council for an area for which there is a county council;

  (g)

  30% where the billing authority is a London borough council or the Common Council for the City of London;

• B is the billing authority’s non-domestic rating income for the year beginning on 1st April 2020;

• BB is the sum of the non-domestic rating income amounts for the year beginning on 1st April 2020 of all billing authorities required to make payments to the major precepting authority under Part 4 of Schedule 7B to the 1988 Act (payments by billing authorities to major precepting authorities);

• C is the authority’s certified non-domestic rating income for the year beginning on 1st April 2020;

• CC is the sum of the certified non-domestic rating income amounts for the year beginning on 1st April 2020 of all billing authorities required to make payments to the major precepting authority under Part 4 of Schedule 7B to the 1988 Act;

• D is an amount which, in the calculation of its certified non-domestic rating income for the year beginning on 1st April 2020, the authority has added or deducted in respect of a relevant provision, excluding—

  (a)

  all amounts included in the calculation in respect of the use of the provision during the year; and

  (b)

  any amount included in the calculation which has been added or deducted in respect of a local non-domestic rating list compiled in 2010 (or in any earlier year) for the purpose of adding to, increasing, or reducing the provision;

• E is an amount calculated in accordance with the formula—

  

  where—

  • e1 is, for the year beginning on 1st April 2020, the carrying amount at the end of that period in respect of a relevant provision made by the authority, insofar as that provision has been made in respect of a local non-domestic rating list compiled in 2017;

  • e2 is an amount which, in its calculation of its certified non-domestic rating income for the year beginning on 1st April 2020, the authority has added or deducted in respect of a relevant provision, but including only such amount which is in respect of amounts to be repaid to ratepayers as a consequence of an alteration to a local non-domestic rating list in respect of one of the matters set out in paragraph 2(7) of Schedule 6 to the 1988 Act, where such a matter has arisen as a result of one or more of the matters mentioned in regulation 2(1) of the Valuation for Rating (Coronavirus) (England) Regulations 2021;

• F is the amount calculated, as part of the authority’s non-domestic rating income for the year beginning on 1st April 2020, as the amount to be disregarded in respect of those classes of hereditament which are designated in regulations made under paragraph 40 of Schedule 7B to the 1988 Act;

• f1 is that part of the disregarded amount (F) that is paid by a billing authority which is a district council to its major precepting authority which is the county council for the billing authority’s area in accordance with regulation 7 of the 2013 Regulations;

• f2 is that part of the disregarded amount (F) that is paid by a billing authority to relevant precepting authorities in accordance with regulation 7A of the 2013 Regulations;

• G is the amount calculated, as part of the authority’s certified non-domestic rating income for the year beginning on 1st April 2020, as the amount to be disregarded in respect of those classes of hereditament which are designated in regulations made under paragraph 40 of Schedule 7B to the 1988 Act;

• g1 is the part of the disregarded amount (G) that is due to a major precepting authority in respect of renewable energy projects in accordance with regulations 7 and 10 of the 2013 Regulations;

• g2 is the part of the disregarded amount (G) that is due to a major precepting authority in accordance with regulations 7A and 10 of the 2013 Regulations;

• H is the amount calculated, as part of the authority’s non-domestic rating income for the year beginning on 1st April 2020, as the sum to be deducted from the central share in accordance with Schedules 2, 2B and 2C to the 2013 Regulations;

• h1 is the amount in respect of case B hereditaments which the billing authority is required to pay to a major precepting authority in accordance with regulation 6 of the 2013 Regulations;

• J is the amount calculated, as part of the authority’s certified non-domestic rating income for the year beginning on 1st April 2020, as the sum to be deducted from the central share in accordance with Schedules 2, 2B and 2C to the 2013 Regulations;

• j1 is the amount in respect of case B hereditaments which the billing authority is required to pay to a major precepting authority in accordance with regulations 6 and 11 of the 2013 Regulations;

• K is the billing authority’s allowance for costs of collection and recovery for the year, calculated as part of the authority’s non-domestic rating income for the year beginning on 1st April 2020 in accordance with paragraph 2 of Schedule 1 to the 2013 Regulations;

• L is the billing authority’s allowance for costs of collection and recovery for the year, calculated as part of the authority’s certified non-domestic rating income for the year beginning on 1st April 2020 in accordance with paragraph 2 of Schedule 1 to the 2013 Regulations;

• M is the amount, calculated as part of the authority’s non-domestic rating income for the year beginning on 1st April 2020, to be disregarded in respect of a designated area in accordance with regulations made under paragraph 39(1)(d) of Schedule 7B to the 1988 Act;

• N is the amount, calculated as part of the authority’s certified non-domestic rating income for the year beginning on 1st April 2020, to be disregarded in respect of a designated area in accordance with regulations made under paragraph 39(1)(d) of Schedule 7B to the 1988 Act;

• P is an amount determined by the Secretary of State in accordance with section 31 of the 2003 Act following the calculation of a billing authority’s non-domestic rating income as being due to the billing authority in respect of the local retention of non-domestic rates under Schedule 7B to the 1988 Act;

• Q is an amount determined by the Secretary of State in accordance with section 31 of the 2003 Act following the calculation of a billing authority’s certified non-domestic rating income as being due to the billing authority in respect of the local retention of non-domestic rates under Schedule 7B to the 1988 Act;

• R is—

  (a)

  for billing authorities, the amount calculated in accordance with the formula—

  

  (b)

  for major precepting authorities, the amount calculated in accordance with the formula—

  

  where C, CC, D and E have the meanings given in this paragraph;

• S is the sum of—

  (a)

  the amount that would be calculated in accordance with paragraph 1(4A) of Schedule 1 to these Regulations, were that calculation to be made in respect of non-domestic rating income (instead of certified non-domestic rating income);

  (b)

  the amount that would be calculated in accordance with paragraph 1(4C) of Schedule 1 to these Regulations, were that calculation to be made in respect of non-domestic rating income (instead of certified non-domestic rating income); and

  (c)

  the authority’s estimate, made as part of its calculation of non-domestic rating income for the year beginning on 1st April 2020, of the amount of relief to be awarded under section 47 of the 1988 Act in accordance with the following guidance issued by the Secretary of State—

  (i)

  the section entitled “Rural Rate Relief” in “Business Rates Information Letter (3/2016): Autumn Statement Measures and 2017 Revaluation” extended in “Business Rates Information Letter (1/2020): Rate Reliefs and Provisional 2020-21 Business Rates Multipliers”, excluding amounts of any such relief awarded in a designated area;

  (ii)

  “Supporting Small Businesses: Annex A” in “Business Rates Information Letter (4/2017): Spring Budget Update” published on 20th June 2017, excluding amounts of any such relief awarded in a designated area;

  (iii)

  the section entitled “Discretionary Relief Scheme” in “Business Rates Information Letter (4/2017): Spring Budget Update”, excluding amounts of any such relief awarded in a designated area; and

  (iv)

  “Business Rates: Retail Discount 2020/21 – Local Authority Guidance” published on 27th January 2020, excluding amounts of any such relief awarded in a designated area;

• T is the sum of—

  (a)

  the amount to be calculated in accordance with paragraph 1(4A) of Schedule 1 to these Regulations;

  (b)

  the amount to be calculated in accordance with paragraph 1(4C) of Schedule 1 to these Regulations; and

  (c)

  the amount of relief awarded under section 47 of the 1988 Act, and included as part of the authority’s certified non-domestic rating income for the year beginning 1st April 2020, where such relief has been awarded in accordance with the following guidance issued by the Secretary of State—

  (i)

  “Expanded Retail Discount 2020/2021: Coronavirus Response – Local Authority Guidance” published on 2nd April 2020, updating guidance published on 30th November 2018, including amounts awarded or recovered in respect of a previous year’s liability, but excluding amounts of any such relief awarded or recovered in a designated area;

  (ii)

  “Nursery Discount 2020/2021: Coronavirus Response – Local Authority Guidance” published on 2nd April 2020, updating guidance published on 20th March 2020, excluding amounts of any such relief awarded or recovered in a designated area;

  (iii)

  Annex A of “The case for a Business Rates Relief for local newspapers – Government Response”, published on 8th July 2015 and updated on 2nd December 2016, and extended until 31st March 2025 by a Written Ministerial Statement on 27 January 2020 from the Financial Secretary to the Treasury, including amounts awarded or recovered in respect of a previous year’s liability, but excluding amounts of any such relief awarded or recovered in a designated area;

  (iv)

  “Business Rates: New Build Empty Property – Guidance” published in September 2013, including amounts awarded or recovered in respect of a previous year’s liability, but excluding amounts of any such relief awarded or recovered in a designated area;

  (v)

  “Business Rates Reoccupation Relief” published in March 2014, including amounts awarded or recovered in respect of a previous year’s liability, but excluding amounts of any such relief awarded or recovered in a designated area;

  (vi)

  “Business Rates: Retail Relief - Guidance” published in January 2014, and extended in “Business Rates Information Letter (11/2014)” including amounts awarded or recovered in respect of a previous year’s liability, but excluding amounts of any such relief awarded or recovered in a designated area;

  (vii)

  “Flood recovery framework: guidance for local authorities in England” published on 28th October 2021, updating guidance published in December 2017, including amounts awarded or recovered in respect of a previous year’s liability, but excluding amounts of any such relief awarded or recovered in a designated area;

  (viii)

  “Business Rates Extension of Transitional Relief for small and medium properties: Guidance” published in January 2015 including amounts awarded or recovered in respect of a previous year’s liability, but excluding amounts of any such relief awarded or recovered in a designated area;

  (ix)

  the section entitled “Rural Rate Relief” in “Business Rates Information Letter (3/2016): Autumn Statement Measures and 2017 Revaluation” extended in “Business Rates Information Letter (1/2020): Rate Reliefs and Provisional 2020-21 Business Rates Multipliers”, including amounts awarded or recovered in respect of a previous year’s liability, but excluding amounts of any such relief awarded or recovered in a designated area;

  (x)

  “Supporting Small Businesses: Annex A” in “Business Rates Information Letter (4/2017): Spring Budget Update” published on 20th June 2017, including amounts awarded or recovered in respect of a previous year’s liability, but excluding amounts of any such relief awarded or recovered in a designated area;

  (xi)

  the section entitled “Discretionary Relief Scheme” in “Business Rates Information Letter (4/2017): Spring Budget Update”, including amounts awarded or recovered in respect of a previous year’s liability, but excluding amounts of any such relief awarded or recovered in a designated area; and

  (xii)

  “Pubs discount 2020/21 – Local Authority Guidance” published in January 2020, including amounts of relief awarded or recovered in respect of a previous year’s liability, but excluding amounts of any such relief awarded or recovered in a designated area;

• U is—

  (a)

  10% where the authority is a county council for an area for which there is also district councils, and which is a fire and rescue authority;

  (b)

  9% where the authority is a county council for an area for which there is also district councils, and which is not a fire and rescue authority;

  (c)

  37% where the authority is the Greater London Authority;

  (d)

  5% where the authority is the West of England Combined Authority;

  (e)

  1% where the authority is a fire and rescue authority not falling within (a) above;

• V is an amount determined by the Secretary of State in accordance with section 31 of the 2003 Act following the calculation of a billing authority’s non-domestic rating income as being due to a major precepting authority in respect of the local retention of non-domestic rates under Schedule 7B to the 1988 Act;

• W is an amount determined by the Secretary of State in accordance with section 31 of the 2003 Act following the calculation of a billing authority’s certified non-domestic rating income as being due to a major precepting authority in respect of the local retention of non-domestic rates under Schedule 7B to the 1988 Act;

• X is the sum of the estimates made by all billing authorities required to make payments to the major precepting authority under Part 4 of Schedule 7B to the 1988 Act, as part of their calculation of non-domestic rating income for the year beginning on 1st April 2020, of—

  (a)

  the amount that would be calculated in accordance with paragraph 1(4A) of Schedule 1 to these Regulations, were that calculation to be made in respect of non-domestic rating income (instead of certified non-domestic rating income);

  (b)

  the amount that would be calculated in accordance with paragraph 1(4C) of Schedule 1 to these Regulations were that calculation to be made in respect of non-domestic rating income (instead of certified non-domestic rating income); and

  (c)

  the amount of relief awarded under section 47 of the 1988 Act in accordance with the guidance issued by the Secretary of State entitled “Business Rates: Retail Discount 20/21 – Local Authority Guidance” published on 27th January 2020,

  excluding any such amounts as relate to a designated area;

• Y is the sum of the following amounts included as part of a billing authority’s certified non-domestic rating income for the year beginning on 1st April 2020—

  (a)

  the sum of the amounts calculated in accordance with paragraph 1(4A) of Schedule 1 to these Regulations for each of the billing authorities that is required to make payments to the major precepting authority for the year under Part 4 of Schedule 7B to the 1988 Act;

  (b)

  the sum of the amounts calculated in accordance with paragraph 1(4C) of Schedule 1 to these Regulations for each of the billing authorities that is required to make payments to the major precepting authority for the year under Part 4 of Schedule 7B to the 1988 Act; and

  (c)

  the amounts of relief awarded under section 47 of the 1988 Act, and included as part of a billing authority’s certified non-domestic rating income for the year beginning on 1st April 2020, by all billing authorities required to make payments to the major precepting authority under Part 4 of Schedule 7B to the 1988 Act, where such relief has been awarded in accordance with the following guidance issued by the Secretary of State —

  (i)

  “Expanded Retail Discount 2020/2021: Coronavirus Response – Local Authority Guidance” published on 2nd April 2020, updating guidance published on 30th November 2018, excluding any such relief awarded or recovered in a designated area and any amounts awarded or recovered in respect of a previous year’s liability;

  (ii)

  “Nursery Discount 2020/2021: Coronavirus Response – Local Authority Guidance” published on 2nd April 2020, updating guidance published on 20th March 2020, excluding amounts of any such relief awarded or recovered in a designated area; and

  (iii)

  Annex A of “The case for a Business Rates Relief for local newspapers – Government Response”, published on 8th July 2015 and updated on 2nd December 2016, and extended until 31st March 2025 by a Written Ministerial Statement on 27 January 2020 from the Financial Secretary to the Treasury, excluding any such relief awarded or recovered in a designated area and any amounts awarded or recovered in respect of a previous year’s liability.

Calculation for billing authorities

4.—(1) The retained rates income of an authority that is a billing authority is the sum of—

(a)the amount calculated in accordance with the formula in paragraph 1(1) of Schedule 1; and

(b)the amount calculated in accordance with sub-paragraph (2) below.

(2) Subject to sub-paragraph (3), the amount mentioned in sub-paragraph (1)(b) is whichever is the smaller of the amounts calculated in accordance with sub-paragraphs (4) and (5).

(3) Where either of the amounts calculated in accordance with sub-paragraphs (4) or (5) is zero, or less than zero, the amount mentioned in sub-paragraph 1(b) is zero.

(4) The amount is calculated in accordance with the formula—

(5) The amount is calculated in accordance with the formula—

Calculation for major precepting authorities

5.—(1) The retained rates income of an authority that is a major precepting authority is the sum of—

(a)the amount calculated in accordance with the formula in paragraph 2 of Schedule 1; and

(b)the amount calculated in accordance with sub-paragraph (2) below.

(2) Subject to sub-paragraph (3), the amount mentioned in sub-paragraph (1)(b) is whichever is the smaller of the amounts calculated in accordance with sub-paragraphs (4) and (5).

(3) Where either of the amounts calculated in accordance with sub-paragraphs (4) or (5) is zero, or less than zero, the amount mentioned in sub-paragraph 1(b) is zero.

(4) The amount is calculated in accordance with the formula—

(5) The amount is calculated in accordance with the formula—

.^F150]

Regulation 5

SCHEDULE 2 Table of authorities, business rates baselines and baseline funding levels _I13

Regulation 6

[^F152SCHEDULE 3 List of authorities

PART 1

PART 2

PART 3

PART 4

PART 5

PART 6

PART 7

PART 8

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[^F154PART 10

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[^F154PART 13

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[^F154PART 16

[^F154PART 17

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