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Local Government Finance Act 1988

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Section 56.

SCHEDULE 7E+W Non-Domestic Rating: Multipliers

Part IE+W Non-Domestic Rating Multipliers

IntroductionE+W

1This Part of this Schedule has effect to determine the non-domestic rating multiplier for each chargeable financial year.E+W

General provisionsE+W

2(1)In the revenue support grant report for the financial year beginning in 1990 the Secretary of State shall specify a non-domestic rating multiplier for the year.E+W

(2)The multiplier must be expressed as a figure in which a part of a whole (if any) is expressed to three decimal places only.

(3)If the report is approved by resolution of the House of Commons the multiplier so specified shall be the non-domestic rating multiplier for the year.

[F13(1)In relation to England, the small business non-domestic rating multiplier for a chargeable financial year shall be calculated in accordance with this paragraph if the year is not one at the beginning of which new lists must be compiled.E+W

(2)An amount shall be found in accordance with the formula—

(3)Subject to sub-paragraph (5) below, that amount may be adjusted by the Secretary of State to reflect the extent to which his last estimate of the total mentioned in paragraph 5(6) or (7) below appears to him to differ from the actual total.

(4)The amount under sub-paragraph (2) above or, if an adjustment is made under sub-paragraph (3) above, the adjusted amount shall be the small business non-domestic rating multiplier for the year.

(5)No adjustment may be made under sub-paragraph (3) above for a chargeable financial year beginning before 2006.

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Amendments (Textual)

3A(1)In relation to England, the non-domestic rating multiplier for a chargeable financial year shall be calculated in accordance with this paragraph if the year is not one at the beginning of which new lists must be compiled.E+W

(2)The non-domestic rating multiplier for the year shall be the amount found by—

(a)increasing the small business non-domestic rating multiplier for the year under paragraph 3 above to reflect the Secretary of State’s estimate of the difference between—

(i)the aggregate amount which will be payable to him and all billing authorities by way of non-domestic rates as regards the year, and

(ii)the aggregate amount which would be so payable if section 43(4A) to (4D) above were omitted, and

(b)if the Secretary of State thinks fit, adjusting the amount found under paragraph (a) above to reflect the extent (if any) to which his estimate of the difference mentioned in that paragraph for an earlier financial year appears to him to differ from the actual difference for that earlier year.

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Amendments (Textual)

3B(1)In relation to Wales, the non-domestic rating multiplier for a chargeable financial year shall be calculated in accordance with this paragraph if the year is not one at the beginning of which new lists must be compiled.E+W

(2)An amount shall be found in accordance with the formula—

(3)Subject to sub-paragraph (5) below, that amount may be adjusted by the National Assembly for Wales to reflect the extent to which its last estimate of the total mentioned in paragraph 5(6) or (7) below appears to it to differ from the actual total.

(4)The amount under sub-paragraph (2) above or, if an adjustment is made under sub-paragraph (3) above, the adjusted amount shall be the non-domestic rating multiplier for the year.

(5)No adjustment may be made under sub-paragraph (3) above for a chargeable financial year beginning before 2006.]

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Amendments (Textual)

[F24In relation to England, the small business non-domestic rating multiplier for a chargeable financial year shall be calculated in accordance with the following formula if the year is one at the beginning of which new lists must be compiled—E+W

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Amendments (Textual)

4A(1)In relation to England, the non-domestic rating multiplier for a chargeable financial year shall be calculated in accordance with this paragraph if the year is one at the beginning of which new lists must be compiled.E+W

(2)The non-domestic rating multiplier for the year shall be the amount found by—

(a)increasing the small business non-domestic rating multiplier for the year under paragraph 4 above to reflect the Secretary of State’s estimate of the difference between—

(i)the aggregate amount which will be payable to him and all billing authorities by way of non-domestic rates as regards the year, and

(ii)the aggregate amount which would be so payable if section 43(4A) to (4D) above were omitted, and

(b)if the Secretary of State thinks fit, adjusting the amount found under paragraph (a) above to reflect the extent (if any) to which his estimate of the difference mentioned in that paragraph for an earlier financial year appears to him to differ from the actual difference for that earlier year.

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Amendments (Textual)

4BIn relation to Wales, the non-domestic rating multiplier for a chargeable financial year shall be calculated in accordance with the following formula if the year is one at the beginning of which new lists must be compiled — E+W

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Amendments (Textual)

5(1)This paragraph applies for the purposes of paragraphs [F33 to 4B] above.E+W

[F4(2)In relation to England, A is the small business non-domestic rating multiplier for the financial year preceding the year concerned (or, if there is no such multiplier for that year, A is the non-domestic rating multiplier for that year).

(2A)In relation to Wales, A is the non-domestic rating multiplier for the financial year preceding the year concerned.]

(3)B is the retail prices index for September of the financial year preceding the year concerned; but if the Treasury so provide by order in relation to the year concerned, B is a figure which is less than that index and which is specified in (or calculated in a manner specified in) the order.

(4)C is the retail prices index for September of the financial year which precedes that preceding the year concerned.

(5)But where the base month for the retail prices index for September of the financial year which precedes that preceding the year concerned (the first year) differs from that for the index for September of the year which precedes the year concerned (the second year), C is the figure which the Secretary of State calculates would have been the retail prices index for September of the first year if the base month for that index had been the same as the base month for the index for September of the second year.

[F5(6)D is the number of whole pounds in the Secretary of State’s or, as the case may be, the National Assembly for Wales' estimate of the total of the appropriate rateable values of all appropriate hereditaments, where—

(a)appropriate rateable values are those which will be shown in lists for the last day of the financial year preceding the year concerned once all alterations to those lists have been made;

(b)appropriate hereditaments are those which will be shown in lists for that day once all alterations to those lists have been made.

(7)E is the number of whole pounds in the Secretary of State’s or, as the case may be, the National Assembly for Wales' estimate of the total of the appropriate rateable values of all appropriate hereditaments, where—

(a)appropriate rateable values are those which will be shown in lists for the first day of the financial year concerned once all alterations to those lists have been made;

(b)appropriate hereditaments are those which will be shown in lists for that first day once all alterations to those lists have been made.

(7A)The reference in sub-paragraph (7)(a) above to rateable values which will be shown in lists for the first day of the financial year concerned once all alterations to those lists have been made includes a reference to rateable values which will be shown in lists for a later day as a result of any alterations of the lists because of the inaccuracy of the lists for that first day.]

(8)References in sub-paragraphs (3) to (5) above to the retail prices index are references to the general index of retail prices (for all items) published by the [F6Office for National Statistics]; and if that index is not published for a month for which it is relevant for the purposes of any of those sub-paragraphs, the sub-paragraph shall be taken to refer to any substituted index or index figures published by [F7that Office].

(9)For the purposes of sub-paragraph (5) above the base month for the retail prices index for September of a particular year is the month for which the retail prices index is taken to be 100 and by reference to which the index for the September in question is calculated.

(10)Estimates under sub-paragraphs (6) and (7) above shall be made on the basis of information available to the Secretary of State on such date as he determines.

(11)In calculating a multiplier a part of a whole (if any) shall be calculated to three decimal places only—

(a)adding one thousandth where (apart from this sub-paragraph) there would be more than five ten-thousandths, and

(b)ignoring the ten-thousandths where (apart from this sub-paragraph) there would be five, or less than five, ten-thousandths.

(12)The power to make an order under sub-paragraph (3) above shall be exercisable by statutory instrument.

(13)An order under sub-paragraph (3) above in its application to a particular financial year (including an order amending or revoking another) shall not be effective unless it is approved by resolution of the House of Commons before the approval by that House of the[F8local government finance report] for the year or before 1 March in the preceding financial year (whichever is earlier).

[F9(14)Sub-paragraph (13) above does not apply to orders made by the National Assembly for Wales.

(15)An order made under sub-paragraph (3) above by the National Assembly for Wales (including an order amending or revoking another) is effective in relation to a particular financial year only if it is made—

(a)before 1 March in the preceding financial year, and

(b)at a time when no local government finance report for the year has been published by the Assembly.]

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Amendments (Textual)

F3Words in Sch. 7 para. 5(1) substituted (27.11.2003 for W.) by Local Government Act 2003 (c. 26), ss. 62(5), 128(6); S.I. 2003/3034, art. 2, Sch. 1 Pt. I

F4Sch. 7 para. 5(2)(2A) substituted for Sch. 7 para. 5(2) (27.11.2003 for W.) by Local Government Act 2003 (c. 26), ss. 62(6), 128(6); S.I. 2003/3034, art. 2, Sch. 1 Pt. I

F5Sch. 7 para. 5(6)-(7A) substituted for Sch. 7 para. 5(6)(7) (27.11.2003 for W.) by Local Government Act 2003 (c. 26), ss. 62(7), 128(6); S.I. 2003/3034, art. 2, Sch. 1 Pt. I

F6Words in Sch. 7 para. 5(8) substituted (1.4.1996) by virtue of S.I. 1996/273, art. 5(1), Sch. 2 para. 24(a)

F7Words in Sch. 7 para. 5(8) substituted (1.4.1996) by S.I. 1996/273, art. 5(1), Sch. 2 para. 24(b)

F8Words in Sch. 7 para. 5(13) substituted (6.3.1992) by 1992 c. 14, s. 117(1), Sch. 13 para. 84(1) (with s. 118(1)(2)(4))

6[F10(1)In relation to England, the Secretary of State shall calculate the small business non-domestic rating multiplier and the non-domestic rating multiplier for a chargeable financial year and, as soon as is reasonably practicable after doing so, shall serve on each billing authority a notice stating the multipliers as so calculated.E+W

(1A)In relation to Wales, the National Assembly for Wales shall calculate the non-domestic rating multiplier for a chargeable financial year and, as soon as is reasonably practicable after doing so, shall serve on each billing authority a notice stating the multiplier as so calculated.

(1B)The notice must show how any calculation has been made and contain details of any estimates or adjustments that have been made.]

(2)Where the financial year is one for which the Secretary of State has calculated a figure for C under paragraph 5(5) above, the notice must contain the figure he has calculated.

[F11(3)Where the financial year is one at the beginning of which new lists must be compiled, the notice must specify the date determined under paragraph 5(10) above for the purpose of making estimates under paragraph 5(6) and (7) above.]

(4)A calculation under [F12this paragraph] is invalid unless one or both of the following conditions is fulfilled—

(a)it is made after the [F13local government finance report] for the year has been approved by resolution of the House of Commons;

(b)it is made on or after 1 March in the preceding financial year.

[F14(4A)Sub-paragraph (4) above does not apply to a calculation made by the National Assembly for Wales for a financial year beginning in or after 2004.

(4B)A calculation made by the Assembly under this paragraph for a financial year beginning in or after 2004 is invalid unless one or both of the following conditions is fulfilled—

(a)it is made after the Assembly has published the local government finance report for the year or, where the Assembly is publishing two local government finance reports for the year, it is made after the Assembly has published both of those reports;

(b)it is made on or after 1 March in the preceding financial year.]

(5)A calculation under [F15this paragraph] above is invalid if made at a time when an order under paragraph 5(3) above which is effective in relation to the year has not come into force.

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Amendments (Textual)

F10Sch. 7 para. 6(1)-(1B) substituted for Sch. 7 para. 6(1) (27.11.2003 for W.) by Local Government Act 2003 (c. 26), ss. 62(8), 128(6); S.I. 2003/3034, art. 2, Sch. 1 Pt. I

F11Sch. 7 para. 6(3) substituted (27.11.2003 for W.) by Local Government Act 2003 (c. 26), ss. 62(9), 128(6); S.I. 2003/3034, art. 2, Sch. 1 Pt. I

F12Words in Sch. 7 para. 6(4) substituted (27.11.2003 for W.) by Local Government Act 2003 (c. 26), ss. 62(10), 128(6); S.I. 2003/3034, art. 2, Sch. 1 Pt. I

F13S. 99 substituted (6.3.1992) by 1992 c. 14, s. 104, Sch. 10 Pt. III para.24 (with s. 118(1)(2)(4))

F15Words in Sch. 7 para. 6(5) substituted (27.11.2003 for W.) by Local Government Act 2003 (c. 26), ss. 62(10), 128(6); S.I. 2003/3034, art. 2, Sch. 1 Pt. I

Special provision for 1990-95E+W

7(1)[F16In relation to a relevant financial year the Secretary of State may make regulations providing that] the non-domestic rating multiplier for the year shall be one which exceeds what it would have been if the regulations had not been made and which is specified in the regulations; and in such a case paragraphs 2 to 6 above shall have effect subject to the regulations.E+W

(2)A multiplier specified under this paragraph must be expressed as a figure in which a part of a whole (if any) is expressed to three decimal places only.

(3)For the purposes of this paragraph relevant financial years are financial years beginning in 1990, 1991, 1992, 1993 and 1994.

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Amendments (Textual)

8(1)A multiplier must be specified under paragraph 2 above for the financial year beginning in 1990 even if a different one is or may be specified for the year under paragraph 7 above.E+W

(2)A multiplier must be calculated, and notices of it must be served, under paragraphs 3 to 6 above for each subsequent relevant financial year even if a different one is or may be specified for the year under paragraph 7 above.

(3)In calculating under paragraphs 3 to 6 above the multiplier for a financial year beginning in or after 1991 (whether or not a relevant financial year) A shall be taken to be what it would have been if no regulations had been made under [F17paragraph 7] above for any year.

(4)An order may be made under paragraph 5(3) above in relation to a financial year beginning in or after 1991 even if a multiplier is or may be specified for the year under paragraph 7 above.

(5)For the purposes of this paragraph relevant financial years are financial years beginning in 1990, 1991, 1992, 1993 and 1994.

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Amendments (Textual)

Part IIE+W Special Authority’s Multipliers

9(1) A special authority’s non-domestic rating multiplier for a chargeable financial year shall be such as is set for the year by the authority in accordance with this Part of this Schedule.E+W

(2)The multiplier must be expressed as a figure in which a part of a whole (if any) is expressed to three decimal places only.

[F18(3)The multiplier must be not greater than the required maximum for the year.

(4)The required maximum for the year shall be calculated in accordance with the formula—

where—

the non-domestic rating multiplier for the year determined in accordance with Part I of this Schedule,

B is a percentage prescribed for the year by order made by the Secretary of State,

C is the amount calculated (or last calculated) for the year by the authority under section 32(4) of the Local Government Finance Act 1992,

D is an amount determined by the Secretary of State for the year and notified by him to the authority before 1 March in the preceding financial year,

E is the total of the rateable values shown in the authority’s local non-domestic rating list on 31 December in the preceding financial year, and

F is a factor determined by the Secretary of State for the year and notified by him to the authority before 1 March in the preceding financial year.

(5)An order under sub-paragraph (4) above in its application to a particular financial year (including an order amending or revoking another) shall not be effective unless it comes into force before 1 March in the preceding financial year.]

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Amendments (Textual)

F18Sch. 7 Pt. II para. 9(3)-(5) substituted (6.3.1992) for para. 9(3)(4) by 1992 c. 14, s. 104, Sch. 10 Pt. I para.5 (with s. 118(1)(2)(4))

10(1)Where a special authority has set a multiplier for a financial year (originally or by way of substitute) it may set a multiplier in substitution if, and only if, it has been quashed . . . F19E+W

(2)Any multiplier set in substitution must be set in accordance with paragraph 9 above.

(3)Where a special authority sets a multiplier in substitution under this paragraph (a new multiplier) anything paid to it by reference to the multiplier for which it is substituted (the old multiplier) shall be treated as paid by reference to the new multiplier.

(4)But if the old multiplier exceeds the new multiplier, the following shall apply as regards anything paid if it would not have been paid had the old multiplier been the same as the new multiplier—

(a)it shall be repaid if the person by whom it was paid so requires;

(b)in any other case it shall (as the authority determines) either be repaid or be credited against any subsequent liability of the person to pay anything to it by way of a non-domestic rate.

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Amendments (Textual)

11(1)Where a special authority has set a multiplier in accordance with paragraph 9 above (whether originally or by way of substitute) it shall, before the end of the period of 21 days beginning with the day of doing so, publish a notice of the multiplier in at least one newspaper circulating in its area.E+W

(2)Failure to comply with sub-paragraph (1) above does not make a multiplier invalid.

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