The Non-Domestic Rating (Designated Areas) Regulations 2025

Citation, commencement and extent

1.—(1) These Regulations may be cited as the Non-Domestic Rating (Designated Areas) Regulations 2025.

(2) These Regulations come into force on 1st April 2025 and extend to England and Wales.

Interpretation

2.  In these Regulations—

“the 1988 Act” means the Local Government Finance Act 1988;

“billing authority” means a billing authority(1) in England, part of whose area falls within a designated area;

“designated area” means an area designated under regulation 3(1);

“local list” means a local non-domestic rating list(2);

“non-domestic rating income”, in relation to a billing authority, means the amount calculated under Part 2 of Schedule 2 in respect of a designated area for a specified year;

“non-domestic rating multiplier”, in relation to a chargeable financial year(3), means the non-domestic rating multiplier for the year calculated by the Secretary of State under Schedule 7 to the 1988 Act(4);

“preceding year” means the chargeable financial year immediately preceding the specified year for which a calculation under Part 3 of Schedule 2 is made;

“revaluation year” means a year in which a local list must be compiled under section 41 of the 1988 Act(5);

“Schedule 7B” means Schedule 7B to the 1988 Act;

“small business non-domestic rating multiplier”, in relation to a chargeable financial year, means the small business non-domestic rating multiplier for that year calculated by the Secretary of State under Schedule 7 to the 1988 Act;

“small business rate baseline amount”, in relation to a billing authority, means the amount calculated under paragraph 3 or 4 (as appropriate) of Schedule 2 in respect of a designated area for a specified year;

“specified year” means, in relation to a designated area, a chargeable financial year falling within the period of years specified in relation to that area in regulation 3(2) or (3) (as the case may be);

“standard business rate baseline amount”, in relation to a billing authority, means the amount calculated under paragraph 5 or 6 (as appropriate) of Schedule 2 in respect of a designated area for a specified year;

“total baseline amount”, in relation to a billing authority, means the amount calculated under paragraph 7 of Schedule 2 in respect of a designated area for a specified year.

Designation of areas

3.—(1) The areas listed in Schedule 1 are designated for the purposes of these Regulations.

(2) Subject to paragraph (3), the designations take effect on 1st April 2025 for the period of 24 years beginning with that date.

(3) The designation of the Riverside Sunderland—Crown Works Studios Designated Area takes effect on 1st April 2025 for the period of 25 years beginning with that date.

Proportion of non-domestic rating income for a designated area to be disregarded

4.—(1) Part 1 of Schedule 2 provides rules for calculating the proportion of a billing authority’s non-domestic rating income in respect of a designated area for a specified year.

(2) The proportion is to be disregarded for the purpose of calculations under—

(a) any of the following provisions of Schedule 7B—

(i) paragraph 6 (payments to the Secretary of State in respect of the central share);

(ii) paragraph 13 (calculations following local government finance report);

(iii) paragraph 16 (calculations following amending report);

(iv) paragraph 23 (calculations of levy payments)(6);

(v) paragraph 26 (calculations of safety net payments)(7);

(vi) paragraph 30 (distribution of remaining balance)(8);

(b) regulations made under any of the following provisions of Schedule 7B—

(i) paragraph 7 (administrative arrangements for payments in respect of the central share);

(ii) paragraph 9 (payments by billing authorities to major precepting authorities);

(iii) paragraph 10 (administrative arrangements for payments by billing authorities to major precepting authorities);

(iv) paragraph 28 (regulations about payments on account).

Amendment of the Non-Domestic Rating (Designated Areas etc) Regulations 2017

5.—(1) The Non-Domestic Rating (Designated Areas etc) Regulations 2017(9) are amended as follows.

(2) In regulation 3 (interpretation), in paragraph (a) of the definition of “period of designation”, after “York Central Enterprise Zone—York Central Site Designated Area” insert “and the Heart of the South West—Huntspill Energy Park Designated Area”.

(3) In regulation 4 (designation of areas)—

(a) in paragraph (3), for “the York Central Enterprise Zone—York Central Site Designated Area”, substitute “an area listed in paragraph (4)”;

(b) after paragraph (3) insert—

“(4) The areas are—

(a) the Heart of the South West—Huntspill Energy Park Designated Area,

(b) the York Central Enterprise Zone—York Central Site Designated Area.”.

We consent to the making of these Regulations

Nicholas Dakin

Jeff Smith

Two of the Lords Commissioners of His Majesty’s Treasury

Signed by authority of the Secretary of State for Housing, Communities and Local Government

Khan

Parliamentary Under Secretary of State

Ministry of Housing, Communities and Local Government

18th February 2025