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Local Government Finance Act 2012

Non-Domestic Rates

Section 1: Local retention of non-domestic rates

29.Section 1 gives effect to Schedule 1 and amends the LGFA 1988 by-

  • inserting and giving effect to a new Schedule 7B (local retention of non-domestic rates); and

  • providing that regulations made under paragraph 9, 11, 22, 25 or 30 of Schedule 7B, and regulations made under paragraph 39 or 40 of Schedule 7B that contain provision under paragraph 41, are to be subject to the affirmative resolution procedure.

30.Further detail on the provisions of Schedule 1 is provided at paragraphs 67 to 92 below.

Section 2: Revenue support grant

31.Section 2 gives effect to Schedule 2 (amendments of provisions about revenue support grant in England). Further detail is provided at paragraph 93 below.

Section 3: Additional grant

32.Section 3 amends the LGFA 1988 to remove provision at sections 85 and 86 for the Secretary of State to pay additional grant to local authorities in England and makes amendments consequential to this change to the LGFA 1992 and the Greater London Authority Act 1999.

Section 4: General GLA Grant

33.Section 4 amends section 100 of the Greater London Authority Act 1999. The effect is that from the financial year beginning 1 April 2013, the Secretary of State may pay a general grant to the Greater London Authority for a financial year, but will not be required to do so.

Section 5: Local retention of non-domestic rates: further amendments

34.Section 5 gives effect to Schedule 3 (further amendments relating to non-domestic rates) and is discussed in further detail at paragraphs 94 and 95 below.

Section 6: Definition of domestic property

35.Section 6 will correct a drafting error in the LGFA 1988. Subsections (2B) and (2C) of section 66 of that Act identify when a building or a self-contained part of a building is not 'domestic property', and apply particularly to provide that where serviced apartments in a building are let out for short periods, they shall be treated as in non-domestic use. The High Court has determined that, due to a drafting error in subsection (2C), the provision does not apply where the apartments are being let by the freeholder of a self-contained part of a building. This section corrects the defect.

Section 7: Payments to and from authorities

36.Section 7 updates some out of date cross references in section 141 of the LGFA 1988, which contains Welsh Ministers’ powers to make regulations to set off payments made by local authorities in respect of non-domestic rate receipts and refunds of revenue support grant against payments made to them of revenue support grant and redistributed non-domestic rate income.

Section 8: Provision of information about non-domestic rates

37.Section 8 amends the provisions on collection and recovery of non-domestic rates in Schedule 9 to the LGFA 1988, the effect of which will be to enable publication of information by electronic means.

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