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The Local Government (Rates Support Grant) Regulations (Northern Ireland) 2011

Draft Legislation:

This is a draft item of legislation. This draft has since been made as a Northern Ireland Statutory Rule: The Local Government (Rates Support Grant) Regulations (Northern Ireland) 2011 No. 375

PART IRates support grant formula

1.  For the purposes of this Schedule—

(a)a council’s wealth means its share of the Northern Ireland gross penny product, as calculated in accordance with this Schedule;

(b)a council’s needs means its share of the Northern Ireland adjusted population (including the additional needs of a council) as calculated in accordance with this Schedule.

2.  The formula to determine a council’s entitlement to rates support grant shall be—

WealthNeeds
This formula illustrates the calculation used to determine a council's entitlement to rates support grant. Firstly it determines a council's wealth by dividing its gross penny rate product by the Northern Ireland gross penny rate product and then multiplying the result by 100. Secondly a similar calculation is carried out to determine a council's needs. The council's home population adjusted is divided by the Northern Ireland home population adjusted and then the result is multiplied by 100. Thirdly the result of the needs calculation is subtracted from the results of the wealth calculation resulting in a surplus or negative variance.

3.  To calculate the proportion of rates support grant payable to a council, the total of negative variances shall be calculated and each council’s negative variance (if any) expressed as a percentage of the total.

This formula calculates the proportion of rates support grant payable to a council. If the result of the previous calculation under paragraph 3 results in a negative variance, that is the council's needs exceed the council's wealth, the council's negative variance is divided by the total of all councils negative variances and multiplied by 100 to give a percentage allocation of total grant.

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Draft Explanatory Memorandum sets out a brief statement of the purpose of a Draft Statutory Rule and provides information about its policy objective and policy implications. They aim to make the Draft Statutory Rule accessible to readers who are not legally qualified and accompany any Statutory Rule laid before the UK Parliament during the suspension of the Northern Ireland Assembly.

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