Local Government Finance Act 1988

Changes over time for: Paragraph 5

Version Superseded: 24/01/2023

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Point in time view as at 18/01/2022.

Changes to legislation:

Local Government Finance Act 1988, Paragraph 5 is up to date with all changes known to be in force on or before 27 December 2024. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations.

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5(1)This paragraph applies for the purposes of paragraphs [F13 to 4B] above.E+W

[F2(2)In relation to England, A is the small business non-domestic rating multiplier for the financial year preceding the year concerned (or, if there is no such multiplier for that year, A is the non-domestic rating multiplier for that year).

(2A)In relation to Wales, A is the non-domestic rating multiplier for the financial year preceding the year concerned.]

(3)[F3In relation to England,] B is the retail prices index for September of the financial year preceding the year concerned; but if the Treasury so provide by order in relation to the year concerned, B is a figure which is less than that index and which is specified in (or calculated in a manner specified in) the order.

(4)[F4In relation to England,] C is the retail prices index for September of the financial year which precedes that preceding the year concerned.

(5)But where the base month for the retail prices index for September of the financial year which precedes that preceding the year concerned (the first year) differs from that for the index for September of the year which precedes the year concerned (the second year), C [F5, in relation to England,] is the figure which the Secretary of State calculates would have been the retail prices index for September of the first year if the base month for that index had been the same as the base month for the index for September of the second year.

[F6(5A)In relation to Wales—

(a)B is the consumer prices index for September of the financial year preceding the year concerned, and

(b)C is the consumer prices index for September of the financial year which precedes that preceding the year concerned.

(5B)But where the base month for the consumer prices index for September of the financial year which precedes that preceding the year concerned (the first year) differs from that for the index for September of the year which precedes the year concerned (the second year), C is the figure which the Welsh Ministers calculate would have been the consumer prices index for September of the first year if the base month for that index had been the same as the base month for the index for September of the second year.]

[F7(6)D is the number of whole pounds in the Secretary of State’s or, as the case may be, the [F8Welsh Ministers'] estimate of the total of the appropriate rateable values of all appropriate hereditaments, where—

(a)appropriate rateable values are those which will be shown in lists for the last day of the financial year preceding the year concerned once all alterations to those lists have been made;

(b)appropriate hereditaments are those which will be shown in lists for that day once all alterations to those lists have been made.

(7)E is the number of whole pounds in the Secretary of State’s or, as the case may be, the [F9Welsh Ministers'] estimate of the total of the appropriate rateable values of all appropriate hereditaments, where—

(a)appropriate rateable values are those which will be shown in lists for the first day of the financial year concerned once all alterations to those lists have been made;

(b)appropriate hereditaments are those which will be shown in lists for that first day once all alterations to those lists have been made.

(7A)The reference in sub-paragraph (7)(a) above to rateable values which will be shown in lists for the first day of the financial year concerned once all alterations to those lists have been made includes a reference to rateable values which will be shown in lists for a later day as a result of any alterations of the lists because of the inaccuracy of the lists for that first day.]

(8)References in sub-paragraphs (3) to (5) above to the retail prices index are references to the general index of retail prices (for all items) published by the [F10Statistics Board]; and if that index is not published for a month for which it is relevant for the purposes of any of those sub-paragraphs, the sub-paragraph shall be taken to refer to any substituted index or index figures published by [F11the Board].

(9)For the purposes of sub-paragraph (5) above the base month for the retail prices index for September of a particular year is the month for which the retail prices index is taken to be 100 and by reference to which the index for the September in question is calculated.

[F12(9A)References in sub-paragraphs (5A) and (5B) to the consumer prices index are to the general index of consumer prices (for all items) published by the Statistics Board or, if that index is not published for a relevant month, any substituted index or index figures published by the Board.

(9B)For the purposes of sub-paragraph (5B) the base month for the retail prices index for September of a particular year is the month for which the consumer prices index is taken to be 100 and by reference to which the index for the September in question is calculated.]

(10)Estimates under sub-paragraphs (6) and (7) above shall be made on the basis of information available to the Secretary of State on such date as he determines [F13or, as the case may be, to the Welsh Ministers on such date as they determine].

(11)In calculating a multiplier a part of a whole (if any) shall be calculated to three decimal places only—

(a)adding one thousandth where (apart from this sub-paragraph) there would be more than five ten-thousandths, and

(b)ignoring the ten-thousandths where (apart from this sub-paragraph) there would be five, or less than five, ten-thousandths.

(12)The power to make an order under sub-paragraph (3) above shall be exercisable by statutory instrument.

(13)An order under sub-paragraph (3) above in its application to a particular financial year (including an order amending or revoking another) shall not be effective unless it is approved by resolution of the House of Commons before the approval by that House of the[F14local government finance report] for the year or before 1 March in the preceding financial year (whichever is earlier).

[F15(13A)The Welsh Ministers may by regulations amend, repeal or disapply sub-paragraphs (5A), (5B), (9A) and (9B) so as to—

(a)substitute for references to the consumer prices index references to another index, or

(b)provide that—

(i)B is a figure specified or described in (or calculated in a manner specified in) the regulations;

(ii)C is a figure so specified or described (or so calculated).

(13B)The power to make regulations under sub-paragraph (13A) shall be exercisable by statutory instrument.

(13C)Regulations under sub-paragraph (13A), in their application to a particular financial year (including regulations amending or revoking others) shall not be effective unless they are approved by resolution of Senedd Cymru before the approval by Senedd Cymru of the local government finance report for the year, or before 1 March in the preceding financial year (whichever is earlier).]

F16(14). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F17(15). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F1Words in Sch. 7 para. 5(1) substituted (27.11.2003 for W., 25.11.2004 for E.) by Local Government Act 2003 (c. 26), ss. 62(5), 128(6); S.I. 2003/3034, art. 2, Sch. 1 Pt. I; S.I. 2004/3132, art. 3(1)(b)

F2Sch. 7 para. 5(2)(2A) substituted for Sch. 7 para. 5(2) (27.11.2003 for W., 25.11.2004 for E.) by Local Government Act 2003 (c. 26), ss. 62(6), 128(6); S.I. 2003/3034, art. 2, Sch. 1 Pt. I; S.I. 2004/3132, art. 3(1)(b)

F3Words in Sch. 7 para. 5(3) inserted (20.3.2021) by Local Government and Elections (Wales) Act 2021 (asc 1), ss. 154(2)(a), 175(3)(m)

F4Words in Sch. 7 para. 5(4) inserted (20.3.2021) by Local Government and Elections (Wales) Act 2021 (asc 1), ss. 154(2)(b), 175(3)(m)

F5Words in Sch. 7 para. 5(5) inserted (20.3.2021) by Local Government and Elections (Wales) Act 2021 (asc 1), ss. 154(2)(c), 175(3)(m)

F6Sch. 7 para. 5(5A)(5B) inserted (20.3.2021) by Local Government and Elections (Wales) Act 2021 (asc 1), ss. 154(2)(d), 175(3)(m)

F7Sch. 7 para. 5(6)-(7A) substituted for Sch. 7 para. 5(6) (27.11.2003 for W., 25.11.2004 for E.) by Local Government Act 2003 (c. 26), ss. 62(7), 128(6); S.I. 2003/3034, art. 2, Sch. 1 Pt. I; S.I. 2004/3132, art. 3(1)(b)

F8Words in Sch. 7 para. 5(6) substituted (25.5.2007) by The Government of Wales Act 2006 (Consequential Modifications and Transitional Provisions) Order 2007 (S.I. 2007/1388), art. 1(2), Sch. 1 para. 39(4)(a)

F9Words in Sch. 7 para. 5(7) substituted (25.5.2007) by The Government of Wales Act 2006 (Consequential Modifications and Transitional Provisions) Order 2007 (S.I. 2007/1388), art. 1(2), Sch. 1 para. 39(4)(a)