The Local Government Changes for England (Council Tax) (Transitional Reduction) Regulations 1997

Notional council tax

3.—(1) The notional council tax of an existing or transferred area shall be calculated by the Secretary of State to the nearest penny, any half penny being rounded up, in accordance with sub-paragraphs (2) to (4) below.

(2) The following formulae shall apply to the following relevant billing authorities—

(a) the formula in sub-paragraph (3) below to—

(i) an existing district council to which are transferred by or in consequence of a section 17 order the functions of a county council in relation to the district council’s area, and

(ii) a new authority which is a district council which has the functions of a county council; and

(b) the formula in sub-paragraph (4) below to a district council the area of which is situated in the area of a reorganised county.

(3) The formula for the calculation of the notional council tax is—

where—

• D is the “reorganisation adjustment” element of the notional amount for the relevant billing authority specified against the name of that authority in Annex C to the Notional Amounts Report,

• E is the figure shown opposite the name of the relevant billing authority in column 2 of Part 1 of Schedule 2 to these Regulations, that figure being the Secretary of State’s estimate of what the relevant billing authority’s SSA for the financial year beginning on 1st April 1996 would have been had that date been the reorganisation date; the estimate is made using the methodology for the calculation of SSAs employed for the purposes of the Finance Report,

• F is £524.023268889989, being the Standard Tax Element shown in Annex B to the Finance Report opposite “Non-metropolitan district councils which have the functions of county councils”,

• G is the figure shown opposite the name of the relevant billing authority in column 3 of Part 1 of Schedule 2 to these Regulations, that figure being the RSG tax base of that authority for the financial year beginning on 1st April 1996; for this purpose—

  (a)

  where the relevant billing authority is an authority referred to in sub-paragraph (2)(a)(i) above, such RSG tax base is the RSG tax base which was calculated for the authority in accordance with the rules contained in Annex C to the Finance Report, and

  (b)

  where the relevant billing authority is an authority referred to in sub-paragraph (2)(a)(ii) above, such RSG tax base is the Secretary of State’s estimate of what that tax base would have been had the reorganisation date been 1st April 1996, calculated by aggregating the RSG tax bases for that year for each transferred area comprised in the area of the relevant billing authority, the RSG tax base for a transferred area being estimated by the Secretary of State using the rules contained in Annex C to the Finance Report and using information provided by the relevant transferor authority, and

• H is the figure shown opposite the name of the relevant billing authority in column 4 of Part 1 of Schedule 2 to these Regulations, that figure being the council tax base of that authority for the financial year beginning on 1st April 1996; for this purpose—

  (a)

  where the relevant billing authority is an authority referred to in sub-paragraph (2)(a)(i) above, such council tax base is its council tax base calculated by the authority for that year, and

  (b)

  where the relevant billing authority is an authority referred to in sub-paragraph (2)(a)(ii) above, such council tax base is the Secretary of State’s estimate of what that tax base would have been had the reorganisation date been 1st April 1996, calculated by aggregating the council tax bases for the financial year beginning on 1st April 1996 for each transferred area comprised in the area of the relevant billing authority, the council tax base for a transferred area being estimated by the Secretary of State using information provided by the relevant transferor authority; the figure for that council tax base for each transferred area is shown against the name of the transferor authority in column 3 of Part 3 of Schedule 2 to these Regulations.

(4) The formula for the calculation of the notional council tax is—

where—

• Jc is the “reorganisation adjustment” element of the notional amount for the reorganised county specified opposite the name of the authority in Annex C to the Notional Amounts Report,

• Kc is the figure shown opposite the name of the reorganised county in column 2 of Part 2 of Schedule 2 to these Regulations, that figure being the Secretary of State’s estimate of what the reorganised county’s SSA for the financial year beginning on 1st April 1996 would have been had that date been the reorganisation date; the estimate is made using the methodology for the calculation of SSAs employed for the purposes of the Finance Report,

• Lc is £447.068581115786, being the Standard Tax Element shown in Annex B to the Finance Report opposite “County councils which do not have the functions of district councils”,

• Mc is the figure shown opposite the name of the reorganised county in column 3 of Part 2 of Schedule 2 to these Regulations, that figure being the Secretary of State’s estimate of what the reorganised county’s RSG tax base for the financial year beginning on 1st April 1996 would have been had that date been the reorganisation date; for this purpose the RSG tax base is estimated by the Secretary of State by aggregating the RSG tax bases for that year of each of the billing authorities to which the reorganised county is entitled to issue a precept in respect of the financial year beginning on 1st April 1997, the RSG tax base for such a billing authority being the RSG tax base which was calculated for the authority in accordance with the rules contained in Annex C to the Finance Report, and

• Nc is the figure for that council tax base shown opposite the name of the reorganised county in column 4 of Part 2 of Schedule 2 to these Regulations, that figure being the Secretary of State’s estimate of what the reorganised county’s council tax base for the year beginning 1st April 1996 would have been had that date been the reorganisation date; for this purpose the council tax base is estimated by the Secretary of State by aggregating the council tax bases for that year of each of the billing authorities to which the reorganised county is entitled to issue a precept in respect of the financial year beginning on 1st April 1997, the council tax base for such a billing authority being its council tax base for the financial year beginning on 1st April 1996, calculated by the authority.