The Non-Domestic Rating (Rates Retention) (Amendment) Regulations 2017

EXPLANATORY NOTE

(This note is not part of the Regulations)

Under paragraph 6 of Schedule 7B to the Local Government Finance Act 1988 (1988 c. 41) (local retention of non-domestic rates), billing authorities are required to pay a proportion of their non-domestic rating income to the Secretary of State (“the central share payment”). The percentage determined by the Secretary of State under paragraph 4 of Schedule 7B to be a billing authority’s central share for a year is specified in the Local Government Finance Report for that year laid before the House of Commons under paragraph 5 of that Schedule.

These Regulations amend the Non-Domestic Rating (Rates Retention) Regulations 2013 (S.I. 2013/452) (“the 2013 Regulations”) to provide for deductions from central share payments by specified billing authorities in Tees Valley and the West Midlands (“specified billing authorities”).

Regulations 3, 4 and 6 amend the 2013 Regulations in relation to the administration of the deduction from the central share payment.

Regulation 5 inserts regulation 9B to make special provision for additional end of year calculations by specified billing authorities in respect of the year beginning on 1st April 2016.

Regulations 7 and 8 amend regulation 11B and insert regulation 11C to make special provision for end of year payments by specified billing authorities in respect of the years beginning on 1st April 2016 and 1st April 2017.

Regulation 9 amends the years for which Schedule 2A is to apply to provide that the year beginning on 1st April 2017 shall be the last year in which billing authorities specified in that Schedule shall make deductions from central share payments.

Regulation 10 inserts Schedule 2C into the 2013 Regulation to provide for the calculation of the amount to be deducted. The Schedule does not apply to billing authorities listed in Part 4 of Schedule 5 to the 2013 Regulations (West of England Combined Authority) for years beginning on or after 1st April 2017. This is because those authorities are within a 100% pilot area for which provision was inserted into the 2013 Regulations by the Non-Domestic Rating (Rates Retention) and (Levy and Safety Net) (Amendment) Regulations 2017 (S.I. 2017/496) with effect from 1st April 2017.

An impact assessment has not been produced for this instrument because it amends an existing local tax regime. Publication of a full impact assessment is not necessary for such legislation.