Local Government Act 1974

PART II Rating

11 The statutory rate rebate scheme

(1) The Secretary of State shall by regulations make, with the consent of the Treasury, a scheme (in this Part of this Act referred to as " the statutory rate rebate scheme ") for the grant by rating authorities to residential occupiers of rebates from rates calculated in accordance with the provisions of the scheme by reference to their needs and their resources.

(2) The statutory rate rebate scheme shall have effect in respect of rebate periods beginning on or after 1st April 1974, and accordingly no person shall be entitled in respect of any such rebate period to a rate rebate under section 49 of the principal Act.

(3) Without prejudice to the generality of the power conferred by subsection (1) above, the statutory rate rebate scheme may contain provisions corresponding, so far as the Secretary of State considers appropriate, to provisions of Part I of Schedule 3 or Part I of Schedule 4 to the [1972 c. 47.] Housing Finance Act 1972 (model schemes of rent rebates and rent allowances).

(4) In this Part of this Act " rebate period " means such period as may be determined in accordance with the statutory rate rebate scheme, and that scheme may make provision for the determination of different periods in relation to different residential occupiers or different classes of residential occupiers.

12 Local rate rebate schemes

(1) Subject to the following provisions of this section, a rating authority may by resolution make for their area a scheme (in this Part of this Act referred to as a " local rate rebate scheme ") for the grant by the authority to residential occupiers of rebates from rates calculated in accordance with the provisions of the scheme by reference to their needs and resources.

(2) A local rate rebate scheme may take the form of a scheme distinct from the statutory rate rebate scheme or may operate by way of variation of that scheme, and accordingly any reference in this Part of this Act to a local rate rebate scheme includes a reference to the statutory rate rebate scheme as so varied.

(3) A local rate rebate scheme shall be so framed as to secure that, in the estimate of the rating authority,—

(a) for any rebate period no person will be entitled under the scheme to a rate rebate less than that to which he would be entitled under the statutory rate rebate scheme; and

(b) the total of the rebates which will be allowable under the local rate rebate scheme in any year will not exceed the permitted total of rebates for that year.

(4) In relation to a local rate rebate scheme for any area, the permitted total of rebates for any year is 110 per cent. of the total of the rate rebates which (if the local rate rebate scheme had not been in force) would have been allowable in that year to residential occupiers in that area under the statutory rate rebate scheme.

(5) A local rate rebate scheme may be revoked or varied by a further resolution of the rating authority and, except in so far as the Secretary of State otherwise directs,—

(a) any such scheme and any variation thereof shall take effect with respect to any rebate period beginning on or after such date as may be specified in the rating authority's resolution, and

(b) a resolution revoking a local rate rebate scheme shall take effect at the expiry of any rebate period which is current, or which expires, on such date as may be specified in the resolution,

and, as soon as practicable after a rating authority has passed a resolution making, varying or revoking a local rate rebate scheme, the authority shall send a copy of the resolution to the Secretary of State.

(6) As soon as practicable after the end of any year in which a local rate rebate scheme has been in operation, and in any case not later than 31st July next following, the rating authority concerned shall send to the Secretary of State a certificate specifying—

(a) the total amount of the rate rebates allowed in that year under the local rate rebate scheme, and

(b) the permitted total of rebates for that year and, if the local rate rebate scheme was not in operation during the whole of that year, the fraction of that permitted total which corresponds to the fraction of the year during which the local scheme was in operation.

(7) Where it appears from a certificate under subsection (6) above that the amount specified as mentioned in paragraph (a) of that subsection exceeds the permitted total or, as the case may be, the appropriate fraction of the permitted total referred to in paragraph (b) of that subsection, it shall be the duty of the rating authority to send to the Secretary of State, together with that certificate, a statement of—

(a) their proposals for varying or revoking the local rate rebate scheme so as to secure that the total of the rate rebates allowed in the year following that to which the certificate relates will not exceed the permitted total of rebates for that year ; or

(b) their reasons for believing that no change is necessary in the local rate rebate scheme in order to secure that result.

(8) If the Secretary of State is of the opinion that any proposals made by a rating authority under subsection (7)(a) above will not secure the result (referred to in that subsection, or that some variation of a local sate rebate scheme will be required to secure that result, notwithstanding the contrary view expressed by a rating authority in a statement under subsection (7)(b) above, or if it comes to the knowledge of the Secretary of State that the condition in subsection (3)(a) above is not fulfilled with respect to the entitlement of any person to a rate rebate under a local rate rebate scheme, the Secretary of State may by order provide—

(a) that from such date as may be specified in the order the local rate rebate scheme shall have effect subject to such variations as may be so specified and that, within such minimum period as may be specified, no other variations may be made in the scheme by the rating authority ; or

(b) that the local rate rebate scheme shall be revoked with effect from such date as may be specified in the order and that no new local rate rebate scheme shall be brought into operation for the rating area concerned within such period as may be so specified.

13 Residential occupiers

(1) Subject to subsections (2) and (3) below, the following persons are residential occupiers for the purposes of this Part of this Act, namely,—

(a) a person who is the occupier of, and resides or is usually resident in, a hereditament which is a dwelling-house and which at the relevant date has a rateable value not exceeding the specified limit;

(b) a person who is the occupier of a hereditament which is not a dwelling-house, but who resides or is usually resident in a part of the hereditament which is used for the purposes of a private dwelling and has at the relevant date a rateable value not exceeding the specified limit;

(c) a person who, not being the occupier of any such hereditament as is mentioned in paragraph (a) or paragraph (b) above, resides or is usually resident in a part of any such hereditament, which part is used for the purposes of a private dwelling and at the relevant date has a rateable value not exceeding the specified limit, and in respect of which he makes payments by way of rent to the occupier or any other person who is himself a residential occupier.

(2) Where two or more persons are joint occupiers of a hereditament such as is mentioned in paragraph (a) or paragraph (b) of subsection (1) above, or joint tenants of such a part thereof as is mentioned in paragraph (c) of that subsection, then, for the purposes of rate rebates under the statutory rate rebate scheme or a local rate rebate scheme, the rating authority may treat one of those persons as if he were the sole occupier of the hereditament or, as the case may be, sole tenant of that part thereof.

(3) For the purposes of paragraphs (b) and (c) of subsection (1) above, the rateable value on any day of part of a hereditament shall be taken to be such value as is found by a proper apportionment of the rateable value of the whole hereditament on that day; and any question arising under this subsection as to the proper apportionment of any rateable value shall be determined by the county court, whose decision shall be final.

(4) In subsection (1) above,—

(a) " the relevant date ", in relation to a person making an application for a rate rebate under the statutory rate rebate scheme or a local rate rebate scheme, means the beginning of the year in any part of which a rebate granted to him in pursuance of the application will be effective, and

(b) " the specified limit", in relation to a hereditament, means such limit of rateable value as the Secretary of State may by order specify for the purposes of this section in relation to hereditaments in the rating area in which that hereditament is situated.

14 Supplementary provisions as to eligibility for rate rebates

(1) Subject to subsection (2) below, no residential occupier liable for rates in respect of a hereditament in any area shall be eligible to apply for a rate rebate under the statutory rate rebate scheme in respect of those rates for any rebate period during which a local rate rebate scheme is in operation in that area.

(2) If any such residential occupier as is referred to in subsection (1) above shows to the satisfaction of the rating authority that the local rate rebate scheme does not in his case fulfil the condition in section 12(3)(a) above, he shall be eligible to apply for a rate rebate under the statutory rate rebate scheme and, if he makes such an application for any rebate period, he shall cease to be eligible to make an application for that period under the local rate rebate scheme.

(3) If, in a case where a residential occupier is liable for rates in respect of a hereditament for a rate period beginning on or after 1st April 1974,—

(a) the residential occupier is entitled to a rebate from those rates under the statutory rate rebate scheme or a local rate rebate scheme, and

(b) the rating authority affords him relief in respect of those rates under section 53 of the principal Act (reduction or remission of payment of rates on account of poverty),

the rating authority shall grant him a rebate as mentioned in paragraph (a) above only if, and to the extent that, the amount of the rebate exceeds the aggregate amount afforded him as mentioned in paragraph (b) above.

(4) In section 16(2) of the [1966 c. 20.] Ministry of Social Security Act 1966 (rate rebates to which persons in receipt of supplementary benefit might otherwise be entitled reduced if their requirements were determined without regard to any rate rebate) for the words " section 5 of the Rating Act 1966 " there shall be substituted the words " a scheme under section 11 or section 12 of the Local Government Act 1974 ".

15 Rating of unoccupied property

(1) In section 17 of the principal Act (rating of unoccupied property in accordance with Schedule 1 to that Act) in subsection (2)—

(a) so much of paragraph (a) as provides that, except with the authority of the Secretary of State, a resolution providing that the provisions of Schedule 1 to that Act shall apply to an area may not take effect within the period of seven years beginning with the day on which those provisions ceased or last ceased to apply to that area, and

(b) so much of paragraph (b) as provides that, except with the authority of the Secretary of State, a resolution providing that the provisions of Schedule 1 to that Act shall cease to apply to an area may not take effect within the period of seven years beginning with the day on which those provisions came or last came into operation in that area,

shall cease to have effect.

(2) In subsection (5) of that section for the words " This section and the said Schedule 1 shall not apply to the Temples, and in their application " there shall be substituted the words " In the application of this section and the said Schedule 1 ".

(3) In paragraph 1(1) of Schedule 1 to the principal Act (where, by virtue of a resolution under section 17 of that Act, that Schedule is in operation in any area, every relevant hereditament in that area which is unoccupied for a continuous period exceeding three months shall be rated in accordance with the provisions of that Schedule) after the words " in that area " there shall be inserted the words " or, if only a class or classes of relevant hereditament is or are for the time being specified by a resolution of the rating authority for the purposes of this paragraph, any relevant hereditament in that area which falls within that class or any of those classes ".

(4) In sub-paragraph (2) of paragraph 1 of Schedule 1 to the principal Act (the amount of rates payable in respect of a vacant hereditament to be one-half of the amount which would be payable if the hereditament were occupied) for the words " one-half " there shall be substituted the words " the specified proportion " , and at the end of that sub-paragraph there shall be inserted the following sub-paragraph:—

“(2A) In sub-paragraph (2) above ' the specified proportion ', in relation to a hereditament, means such proportion (which may be the whole or any less amount) as may be specified for the purposes of this sub-paragraph by a resolution of the rating authority for the rating area in which the hereditament is situated; and different proportions may be so specified in relation to different classes of hereditaments and in relation to hereditaments in different parts of the rating area.”

(5) After paragraph 3 of Schedule 1 to the principal Act there shall be inserted the following paragraph:—

“3A Without prejudice to section 53 of this Act, a rating authority shall have power to reduce or remit the payment of any rates payable in respect of a hereditament by virtue of paragraph 1 of this Schedule if they consider that the payment would cause hardship to the person liable for those rates.”

(6) At the end of paragraph 14 of Schedule 1 to the principal Act there shall be added the following sub-paragraph:—

“(2) In calculating any period for the purposes of this Schedule in relation to a hereditament which is of a class specified by the rating authority for the purposes of paragraph 1 above, any earlier period during which classes of relevant hereditament were, but no class comprising that hereditament was, so specified shall be disregarded.”

16 Rating surcharge on unused office, etc., property

The following sections shall be inserted after section 17 of the principal Act:—

“17A Liability to progressive surcharge in respect of unused office, etc., property.

(1) If for a continuous period exceeding six months a commercial building is not used for the purpose for which it was constructed or has been adapted, its owner shall pay in respect of that period (the 'period of non-use') a surcharge additional to the rates (if any) payable apart from this section.

(2) Subsection (1) of this section shall not apply where—

(a) the owner has tried his best to let the building, or

(b) the condition of the building makes it unfit for use for the purpose for which it was constructed or has been adapted, and it cannot be rendered fit at a cost which is reasonable in relation to the value of that use.

(3) Where the owner is in occupation of the building throughout the period of non-use, the surcharge shall be levied in the form of rates by doubling the normal rates for the first twelve months of the period of non-use, trebling the normal rates for the second twelve months, quadrupling the normal rates for the third twelve months, and so on progressively while the period of non-use lasts.

In this subsection ' the normal rates', in relation to any period, means the rates payable in respect of that period apart from this section (taking rates as accruing uniformly from day to day); and where the period of non-use extends through part only of any twelve-month period, the surcharge shall be calculated by reference to the normal rates for that part.

(4) Where the owner is not in occupation of the building throughout the period of non-use—

(a) the amount of the surcharge shall be the same as it would have been if the owner had been in occupation of the building throughout the period of non-use, and

(b) the surcharge shall be levied in the form of rates of that amount as if they were payable by the owner in respect of that occupation.

(5) In determining whether or not the owner has tried his best to let the building, regard shall be had to the following, as well as other relevant factors—

(a) the rent sought, compared with rents of similar properties in the area,

(b) the other covenants and conditions required by the owner to be contained in any proposed lease,

(c) whether or not the owner indicated to prospective lessees that he was prepared to let the building in parts,

(d) the number and resources of the firms of estate agents retained for the purpose of letting the building, and

(e) the nature and extent of advertising of the building by the owner or those agents.

17B Supplemental provisions as to section 17A.

(1) A rating authority may serve a notice on the owner of any commercial building requiring him to make a written return containing such particulars as may be reasonably required by the authority for the purposes of section 17A of this Act; and subsections (3) to (6) of section 82 of this Act shall apply to a notice under this subsection as they apply to a notice under section 82, as if—

(a) the reference in section 82(3) to the valuation officer were a reference to the rating authority, and

(b) the penalties laid down by section 82(4) and (5) were—

(i) on summary conviction, a fine not exceeding £400; and

(ii) on conviction on indictment, imprisonment for a term not exceeding two years, or a fine, or both.

(2) References in section 17A of this Act and this section to a commercial building are references to a hereditament (not being a dwellinghouse, or a hereditament having a floor space not exceeding 240 square feet and used as a lock-up garage) whose net annual value falls to be ascertained under section 19(2) of this Act; and if during a period of non-use a commercial building is divided into two or more hereditaments, the amount of any surcharge imposed under section 17A of this Act in respect of any of those hereditaments shall be the same as if it had been a separate hereditament from the beginning of the period of non-use.

(3) A surcharge imposed under section 17A of this Act in respect of a hereditament shall until recovered be a charge on the land comprised in the hereditament; and for the purposes of the application to such a charge of section 15 (registration of local land charges) of the [1925 c. 22.] Land Charges Act 1925 this Act shall be deemed to be a similar statute to the Acts mentioned in subsection (1) of that section.

(4) Where a hereditament which is not used for the purpose for which it was constructed or has been adapted becomes so used on any day and becomes not so used again on the expiration of a period of less than six weeks beginning with that day, then for the purpose of ascertaining any period during which the hereditament has been continuously not so used, it shall be deemed to have remained not so used on that day and during that period.

(5) A hereditament shall be taken to be used on any day for the purposes for which it was constructed or has been adapted if, but only if, not less than four-fifths of it was so used on that day.

(6) Schedule 1 to this Act (except paragraphs 1, 2(c) and (d), 6, 12 and 14) shall apply for the purposes of section 17A of this Act as it applies for the purposes of section 17 thereof, as if—

(a) references to paragraph 1 of that Schedule were references to section 17A of this Act,

(b) references to a relevant hereditament or a relevant period of vacancy were references to a commercial building and a period of non-use respectively, and

(c) references to three months were references to six months.

(7) In section 17A of this Act and this section 'owner' means the person entitled to possession, and where different persons are entitled to possession of a hereditament during different parts of a period of non-use, a surcharge in respect of that period shall be apportioned between them according to the length of each part and levied accordingly.

(8) In the application of section 17(A) of this Act to the City of London, ' rates' means the aggregate of the poor rate and the general rate.

(9) Section 17A of this Act shall not apply to any period before the passing of the Local Government Act 1974.”

17 Increases in statutory deduction from gross value: alteration of valuation lists

If, on or before 31st December 1973, a draft of an order is laid before Parliament under subsection (5) of section 19 of the principal Act increasing the amount which, in accordance with subsection (2) of that section, is to be deducted from the gross value of a hereditament of a class specified in the order for the purpose of ascertaining the net annual value of that hereditament and an order is made in terms of the draft so laid,—

(a) the valuation officer shall, by directions to the rating authority, cause to be made in a valuation list any alterations necessary to give effect to the increased deductions, and the rating authority shall give effect to any such directions accordingly; and

(b) any alteration made in a valuation list by virtue of paragraph (a) above shall have effect as from 1st April 1974, but without prejudice to any subsequent alteration of the valuation list made by virtue of any provision of the principal Act.

18 Rating of plant and machinery

(1) In subsection (5) of section 21 of the principal Act (power for the Secretary of State by order to exclude certain items of plant or machinery, or parts of such items, from being treated as part of a hereditament for the purposes of valuation) for the words from " which satisfies " to the end of the subsection there shall be substituted the words " which falls within any of paragraphs (a) to (c) below, that is to say,—

(a) any item or part of an item which is moved or rotated by motive power as part of a process of manufacture;

(b) so much of any refractory or other lining forming part of any plant or machinery as is customarily renewed by reason of normal use at intervals of such frequency being less than a year as may be specified in the order;

(c) any item which is of such a description and in respect of which such conditions are fulfilled as may be specified in the order and which is readily capable of being moved from one site and re-erected in its original state on another without the substantial demolition of the item or of any surrounding structure ".

(2) Section 22 of the principal Act (determination of certain questions as to plant and machinery) shall cease to have effect.

19 Rating of certain public utilities and other bodies

(1) The Secretary of State may by order make provision for determining, by such method as may be specified in the order, the rateable value of, or of any class or description of, the hereditaments specified in Schedule 3 to this Act.

(2) An order under this section applying to any hereditament, or any class or description of hereditament, may provide for determining rateable value by the application of different methods of valuation to different parts of the hereditament.

(3) Before making an order under this section the Secretary of State shall consult with such associations of local authorities or of persons carrying on undertakings as appear to him to be concerned and with any local authority or person carrying on an undertaking with whom consultation appears to him to be desirable.

(4) An order under this section may repeal or amend any provision of—

(a) sections 31 to 34 of and Schedules 4 to 7 to the principal Act,

(b) section 52 of the [1969 c. 48.] Post Office Act 1969, and

(c) any other provision of the principal Act so far as that provision relates to the valuation of hereditaments to which the order relates,

and any such order may as regards any such hereditaments apply, restrict or modify the provisions of the principal Act relating to proposals for alterations of valuation lists and to appeals in connection with such lists and to the withholding of rates where proposals are pending, and shall have effect notwithstanding anything in any of those provisions.

(5) No order under this section shall have effect unless approved by a resolution of each House of Parliament.

20 Exemption from rates for certain hereditaments comprising facilities for disabled persons

Section 45 of the principal Act (relief in respect of facilities for disabled persons) shall have effect, and shall be deemed to have had effect on and after 1st April 1973, as if at the end of the section there were added the following subsections:—

“(2) No person shall, in respect of any period, be liable to pay rates in respect of a hereditament to which this subsection applies, or be deemed to be in occupation thereof for rating purposes, and notwithstanding anything in this Act no such hereditament shall be included in any rate made in respect of any period.

(3) Subsection (2) of this section applies to a hereditament consisting exclusively of—

(a) land on which is erected a structure falling within paragraph (a) of subsection (1) of this section ; or

(b) land on which is erected a structure which falls within paragraph (c) of subsection (1) of this section and which is provided for the accommodation of a vehicle used by an invalid or disabled person ; or

(c) land on which is erected a structure which falls within paragraph (d) of subsection (1) of this section and is of a kind similar to such a structure as is referred to in paragraph (a) or paragraph (b) above; or

(d) land falling within paragraph (a), paragraph (b) or paragraph (c) above together with other land occupied and used solely in connection with the structure in question ; or

(e) land on which no structure is erected but which is used exclusively for the keeping of a vehicle used by an invalid or disabled person.”

21 Valuation lists not to be altered on account of minor structural alterations to dwellings

(1) In the case of a hereditament which is a dwelling-house or a mixed hereditament within the meaning of section 48 of the principal Act, no proposal may be made under section 69 of that Act for an increase in the gross value ascribed to the hereditament in the valuation list by reason of the making of structural alterations on or after 1st April 1974—

(a) if and so far as the alterations are necessary for the purpose of installing a system for providing heating in two or more rooms in the hereditament, or

(b) if the proposal would be for an increase not exceeding such an amount as the Secretary of State may by order specify,

and, accordingly, references in the following provisions of this section to structural alterations do not include alterations falling within paragraph (a) above.

(2) If, by reason of the making of structural alterations on or after 1st April 1974, a proposal is made for an increase in the gross value of any such hereditament as is referred to in subsection (1) above, but—

(a) an agreement is reached under section 72(1) of the principal Act on the alteration of the valuation list which, apart from this section, would be appropriate to take account of the alterations, and

(b) the alteration so agreed would represent an increase in the gross value of such an amount that, by virtue of subsection (1)(b) above, no proposal for an increase of that amount could have been made,

then, notwithstanding the said section 72(1), no alteration shall be made to the gross value ascribed to the hereditament in the valuation list.

(3) If, by reason of the making of structural alterations on or after 1st April 1974, a proposal is made for an increase in the gross value of any such hereditament as is referred to in subsection (1) above but, on an appeal under section 76 or an arbitration under section 78 of the principal Act relating to the proposal, the court or arbitrator is of the opinion that the increase in the gross value to take account of the alterations would be of such an amount that, by virtue of subsection (1)(b) above, no proposal for an increase of that amount could have been made, the court or arbitrator shall direct that no alteration be made to the gross value ascribed to the hereditament in the valuation list.

(4) If, by reason of the making of structural alterations on or after 1st April 1974, the gross value of any such hereditament as is referred to in subsection (1) above is increased but, on an appeal under section 77 of the principal Act, the Lands Tribunal is of the opinion that the increase in the gross value should be reduced to such an amount that, by virtue of subsection (1)(b) above, no proposal for an increase of that amount could have been made, the Tribunal shall give such directions as appear to it to be appropriate to secure that the valuation list is altered so as to restore to the hereditament the gross value ascribed to it in that list before the increase.

(5) In any case where,—

(a) by virtue of subsection (1)(b) above, no proposal for an increase in the gross value ascribed to a hereditament in a valuation list is made to take account of the making of structural alterations, but

(b) as a result of subsequent structural alterations, a proposal, permitted by subsection (1) above, is made under section 69 of the principal Act for such an increase,

then, for the purposes of section 79(2) of the principal Act (date on which alterations in the valuation list are to have effect), the event by reason of which the alteration is made shall be taken to be the making of the last of the structural alterations of which account was taken in the making of the proposal referred to in paragraph (b) above.

(6) An order under subsection (1)(b) above shall be of no effect unless it is approved by a resolution of each House of Parliament.

22 Interpretation of Part II

(1) In this Part of this Act—

• " the principal Act " means the [1967 c. 9.] General Rate Act 1967;

• " local rate rebate scheme " has the meaning assigned to it by section 12 above ; and

• " the statutory rate rebate scheme" has the meaning assigned to it by section 11 above.

(2) Except in so far as otherwise provided in this Part of this Act, expressions used in this Part have the same meanings as in the principal Act.

(3) Sections 114 (rules, regulations and orders) and 118 (application to Isles of Scilly) of the principal Act shall apply as if this Part of this Act were contained in the principal Act.