The Non-Domestic Rating Contributions (England) (Amendment) Regulations 2008

EXPLANATORY NOTE

(This note is not part of the Regulations)

Under Part II of Schedule 8 to the Local Government Finance Act 1988 (“the 1988 Act”), billing authorities are required to pay amounts (called non-domestic rating contributions) to an account held by the Secretary of State (“the national non-domestic rating pool”). The national non-domestic rating pool is subsequently distributed to authorities under the rules in Part III of Schedule 8 to the 1988 Act. Payments into the national non-domestic rating pool in respect of the provisional amount of the non-domestic rating contributions are made during the financial year. Final calculations and adjustments of those contributions are made after the year ends.

These Regulations amend the rules contained in the Non-Domestic Rating Contributions (England) Regulations 1992 (“the 1992 Regulations”) for the calculation of non-domestic rating contributions and the assumptions to be made in calculating the provisional amount of the non-domestic rating contributions for financial years beginning on or after 1st April 2009. They are concerned with—

(a) the offset for a special authority (the definition of “special authority” is given in section 144(6) of the 1988 Act) in paragraph 1(4) of Schedule 1 to the 1992 Regulations (regulation 3(a));

(b) the national cost of collection figure in paragraph 4(4) of that Schedule (regulation 3(b));

(c) the buoyancy factor (which is one of the assumptions billing authorities use in calculating the provisional amount) in paragraph 2(12) of Schedule 2 to the 1992 Regulations (regulation 4(a)); and

(d) the losses in collection percentages in paragraph 8(1) of that Schedule (regulation 4(b)).

The cost factors prescribed in Part II of Schedule 1 to the 1992 Regulations remain unchanged for most authorities. The table in Part II is substituted (regulation 3(c)), however, so that it reflects the results of local government restructuring in England under the Local Government and Public Involvement in Health Act 2007. This ensures that a cost factor is prescribed for authorities taking over functions under the 1988 Act from authorities being wound up and dissolved.

A full impact assessment has not been produced for this instrument as no impact on the private or voluntary sectors is foreseen.