The Non-Domestic Rating Contributions (Amendment) (England) Regulations 2005

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 2006. They make amendments in relation to—

(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;

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

(c) the cost factors in Part II of that Schedule;

(d) 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; and

(e) the losses in collection percentages in paragraph 8(1) of that Schedule.