PART 1 Preliminary

Citation and commencement

1. —(1) These Regulations may be cited as the Non-Domestic Rating (Rates Retention) and (Levy and Safety Net) (Amendment) Regulations 2017.

(2) These Regulations come into force on the day after the day on which they are made.

PART 2 Rates retention

Amendment of the Non-Domestic Rating (Rates Retention) Regulations 2013

2.The Non-Domestic Rating (Rates Retention) Regulations 2013( 4 ) are amended as follows.

Amendment of regulation 3

3. In regulation 3 (calculation and notification of non-domestic rating income and other amounts)—

(a) after paragraph (1)(d) insert—

“ (da) for a billing authority listed in Parts 2 to 6 of Schedule 5, the amount that is its estimate of the amount (if any) specified by paragraph 2 of Schedule 2 for that year;

(db) for a billing authority listed in Parts 2 to 6 of Schedule 5, the amount that is its estimate of the amount (if any) specified by paragraph 3 of Schedule 2 for that year; ” ; and

(b) after paragraph (2) insert—

“ (2A) In relation to the relevant year commencing on 1st April 2017, a billing authority listed in Parts 2 to 6 of Schedule 5 must on or before 30th April 2017 notify the Secretary of State and any relevant precepting authority of the amounts it has calculated under paragraph (1)(da) and (db) for that relevant year. ” .

Amendment of regulation 4

4. In regulation 4 (payment to the Secretary of State in respect of the central share), after paragraph (2) insert—

“ (3) In relation to a relevant year commencing on or after 1st April 2017, this regulation does not apply to a billing authority listed in Parts 2 to 6 of Schedule 5. ” .

Amendment of regulation 5

5. In regulation 5 (payments by billing authorities to major precepting authorities in respect of share of income)—

(a) in paragraph (3), for “The” substitute “Unless paragraph (3A) applies, the”; and

(b) after paragraph (3) insert—

“ (3A) For a relevant year commencing on or after 1st April 2017, the relevant precepting authority shares are—

(a) 37% where the relevant precepting authority is the Greater London Authority;

(b) 5% where the relevant precepting authority is the West of England Combined Authority ( 5 ) . ” .

Amendment of regulation 6

6. In regulation 6 (payments to major precepting authorities in respect of deductions from central share payments)—

(a) in paragraph (1), for “of qualifying relief specified by paragraph 3 of Schedule 2 (case B hereditaments)” substitute “specified by paragraph 3 of Schedule 2 (case B hereditaments) or paragraph 2(1) of Schedule 2A (special provision for deduction from the central share payment)”; and

(b) in paragraph (2) for “the specified” substitute “each specified”.

Amendment of regulation 11

7. In regulation 11 (reconciliation of amount deducted from central share payment)—

(a) before paragraph (1) insert—

“ (A1) This regulation applies in relation to a relevant year if a billing authority deducts an amount under regulation 4(1) from its central share payment for that year. ” ;

(b) in paragraph (3), for “For” substitute “Unless paragraph (4) applies, for”; and

(c) after paragraph (3) insert—

“ (4) In relation to a relevant year commencing on or after 1st April 2017, the percentage shares are—

(a) 44.8% where the billing authority is listed in Part 1 of Schedule 5; and

(b) 55.2% where the relevant precepting authority is the Greater London Authority. ” .

Amendment of Schedule 2A

8. In paragraph 1 of Schedule 2A (special provision for deduction from the central share payment)( 6 )—

(a) in sub-paragraph (1), for “This” substitute “Subject to sub-paragraph (1A), this”; and

(b) after sub-paragraph (1) insert—

“ (1A) This Schedule does not apply to a billing authority listed in Part 2 of Schedule 5 for a relevant year beginning on or after 1st April 2017. ” .

Amendment of Schedule 3

9. In the definition of “Q” in Schedule 3 (transfer from collection fund to general fund)—

(a) in paragraph (a), for “50%” substitute “unless paragraph (e) applies, 50%”;

(b) in paragraph (b), for “49%” substitute “unless paragraph (e) applies, 49%”;

(c) in paragraph (c), for “40%” substitute “unless paragraph (e) applies, 40%”;

(d) in paragraph (d), for “30%” substitute “unless paragraph (e) applies, 30%”; and

(e) after paragraph (d) insert—

“ (e) for a relevant year beginning on or after 1st April 2017—

(i) for a billing authority listed in Parts 2 to 4 of Schedule 5, 99%;

(ii) for a billing authority listed in Part 5 of Schedule 5, 94%;

(iii) for a billing authority listed in Part 6 of Schedule 5, 100%; ” .

Amendment of Schedule 4

10. —(1) In Schedule 4 (rules for estimation and apportionment of surplus and deficit), paragraph 2 is amended as follows.

(2) In sub-paragraph (1), for “The” substitute “Unless sub-paragraph (1A), (1B), (1C) or (1D) applies, the”.

(3) After sub-paragraph (1) insert—

“ (1A) For the relevant year beginning on 1st April 2018, the Secretary of State’s share of any surplus or of any deficit estimated for that year under paragraph 1 by a billing authority listed in Part 1 of Schedule 5 is calculated in accordance with the formula—

(1B) For the relevant year beginning on 1st April 2018, the Secretary of State’s share of any surplus or of any deficit estimated for that year under paragraph 1 by a billing authority listed in Parts 2 to 6 of Schedule 5 is calculated in accordance with the formula—

(1C) For a relevant year beginning on or after 1st April 2019, the Secretary of State’s share of any surplus or of any deficit estimated for that year under paragraph 1 by a billing authority listed in Part 1 of Schedule 5 is 33%.

(1D) For a relevant year beginning on or after 1st April 2019, the Secretary of State’s share of any surplus or of any deficit estimated for that year under paragraph 1 by a billing authority listed in Parts 2 to 6 of Schedule 5 is zero. ” .

(4) In sub-paragraph (2)—

(a) for “A relevant” substitute “Unless sub-paragraph (2A) or (2B) applies, a relevant”; and

(b) after “regulation 5(3)” insert “or (3A)”.

(5) After sub-paragraph (2) insert—

“ (2A) Where the relevant precepting authority is the Greater London Authority, its share of any surplus or of any deficit—

(a) for the relevant year beginning on 1st April 2017, is 20%;

(b) for the relevant year beginning on 1st April 2018, is calculated in accordance with the formula—

(2B) Where the relevant precepting authority is the West of England Combined Authority, its share of any surplus or of any deficit—

(a) for the relevant year beginning on 1st April 2017, is zero;

(b) for the relevant year beginning on 1st April 2018, is calculated in accordance with the formula—

(6) In sub-paragraph (3), for “The” substitute “Unless any of the following sub-paragraphs applies, the”.

(7) After sub-paragraph (3) insert—

“ (4) For the relevant year beginning on 1st April 2018, for a billing authority listed in Parts 2 to 4 of Schedule 5, the billing authority’s share of any surplus or of any deficit for that year is calculated in accordance with the formula—

(5) For the relevant year beginning on 1st April 2018, for a billing authority listed in Part 5 of Schedule 5, the billing authority’s share of any surplus or of any deficit for that year is calculated in accordance with the formula—

(6) For the relevant year beginning on 1st April 2018, for a billing authority listed in Part 6 of Schedule 5, the billing authority’s share of any surplus or of any deficit for that year is calculated in accordance with the formula—

(7) For a relevant year beginning on or after 1st April 2019, the billing authority’s share of any surplus or of any deficit for that year is—

(a) for a billing authority listed in Parts 2 to 4 of Schedule 5, 99%;

(b) for a billing authority listed in Part 5 of Schedule 5, 94%;

(c) for a billing authority listed in Part 6 of Schedule 5, 100%.

(8) In this paragraph—

A is the surplus or deficit estimated for the relevant year beginning on 1st April 2018;

B is the amount mentioned in paragraph 1(3)(a);

C is the amount mentioned in paragraph 1(3)(e);

D is the amount mentioned in paragraph 1(4)(a);

E is the amount mentioned in paragraph 1(4)(g). ” .

Insertion of Schedule 5

11. After Schedule 4 insert Schedule 5 which is set out in Schedule 1 to these Regulations.

PART 3 Levy and safety net

Amendment of the Non-Domestic Rating (Levy and Safety Net) Regulations 2013

12.The Non-Domestic Rating (Levy and Safety Net) Regulations 2013( 7 ) are amended as follows.

Amendment of regulation 5

13. In regulation 5 (business rates baseline and baseline funding level)—

(a) in paragraph (3), for “a year commencing on or after 1st April 2014” substitute “the years commencing on 1st April 2014, 1st April 2015 and 1st April 2016 and for the years commencing on or after 1st April 2018”;

(b) after paragraph (3) insert—

“ (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—

Amendment of regulation 6

14. —(1)Regulation 6 (individual levy rates and safety net thresholds) is amended as follows.

(2) In paragraph (1), for “An” substitute “For the relevant years commencing on 1st April 2013, 1st April 2014, 1st April 2015 and 1st April 2016, an”.

(3) After paragraph (2) insert—

“ (2A) Unless paragraph (2C) applies, for a relevant year commencing on or after 1st April 2017 an authority’s individual levy rate is 0.5 or the figure calculated in accordance with the formula in paragraph (2B), whichever is less.

(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 a relevant year beginning on or after 1st April 2017 is zero. ” .

Amendment of Schedule 1

15. —(1) In Schedule 1 (calculation of retained rates income), paragraph 1 is amended as follows.

(2) In sub-paragraph (1), for the definitions of P and Q substitute—

“ P is—

(a)

unless paragraph (b) 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)

in respect of the billing authorities listed in Parts 2 to 8 of Schedule 3—

(i)

for the relevant year beginning on 1st April 2017, the amount specified for that authority in column 2 of Schedule 3;

(ii)

for a relevant year beginning on or after 1st April 2018, the amount calculated in accordance with the formula—

Q is—

(a)

unless paragraph (b) 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)

in respect of the billing authorities listed in Parts 2 to 8 of Schedule 3—

(i)

for the relevant year beginning on 1st April 2017, the amount specified for that authority in column 3 of Schedule 3;

(ii)

for a relevant year beginning on or after 1st April 2018, the amount calculated in accordance with the formula—

(3) After sub-paragraph (1) insert—

“ (1A) For the purpose of the definitions of P and Q in sub-paragraph (1)—

A is the value for P or Q for the previous year;

B is the small business rates multiplier for the relevant year;

C is the small business rating multiplier for the preceding year. ” .

Insertion of Schedule 3

16. After Schedule 2, insert Schedule 3 which is set out in Schedule 2 to these Regulations.

Regulation 11

SCHEDULE 1

Regulations 3, 4 and 11 and Schedules 2A, 3 and 4

“ SCHEDULE 5 List of billing authorities

PART 1

PART 2

PART 3

PART 4

PART 5

PART 6

Regulation 16

SCHEDULE 2

Regulation 6

“ SCHEDULE 3 List of authorities

PART 1

PART 2

PART 3

PART 4

PART 5

PART 6

PART 7

PART 8