2017 No. 318

Rating And Valuation, England

The Non-Domestic Rating (Designated Areas etc.) Regulations 2017

Made

Laid before Parliament

Coming into force

The Secretary of State for Communities and Local Government makes these Regulations in exercise of the powers conferred by section 143(1) and paragraphs 8 and 39 of Schedule 7B to the Local Government Finance Act 19881.

These Regulations are made with the consent of the Treasury in accordance with paragraphs 8(3) and 39(13) of that Schedule.

Citation and commencement1

1

These Regulations may be cited as the Non-Domestic Rating (Designated Areas etc.) Regulations 2017.

2

These Regulations come into force on 1st April 2017.

Application2

These Regulations apply in relation to England only.

Interpretation3

In these Regulations—

  • “the 1988 Act” means the Local Government Finance Act 1988;

  • “baseline amount”, in relation to a billing authority, means the amount calculated under Part 3 of Schedule 2 in respect of a designated area for a specified year;

  • “billing authority” means a billing authority in England all or part of whose area falls within a designated area;

  • “designated area” means an area designated under regulation 4(1);

  • “local list” means a local non-domestic rating list2;

  • “non-domestic rating income”, in relation to a billing authority, means the amount calculated under Part 2 of Schedule 2 in respect of a designated area for a specified year;

  • “period of designation” has the meaning given in regulation 4(2);

  • “preceding year” means the chargeable financial year3 immediately preceding the specified year for which a calculation under Part 3 of Schedule 2 is made;

  • “revaluation year” means a year in which a local list must be compiled under section 41 of the 1988 Act;

  • “Schedule 7B” means Schedule 7B to the 1988 Act;

  • “small business non-domestic rating multiplier”, in relation to a chargeable financial year, means the small business non-domestic rating multiplier for that year determined under Part 1 of Schedule 7 to the 1988 Act4; and

  • “specified year” means a chargeable financial year falling within the period of designation.

Designation of areas4

1

The areas listed in Schedule 1 are designated for the purposes of these Regulations.

2

The designation of those areas takes effect on 1st April 2017 and has effect for the period of 25 years beginning on that date (“period of designation”).

Proportion of non-domestic rating income for a designated area to be disregarded5

1

Part 1 of Schedule 2 provides rules for calculating the proportion of a billing authority’s non-domestic rating income in respect of a designated area for a specified year.

2

The proportion is to be disregarded for the purpose of calculations under—

a

any of the following provisions of Schedule 7B—

i

paragraph 6 (payments in respect of the central share);

ii

paragraph 13 (calculations following local government finance report);

iii

paragraph 16 (calculations following amending report);

iv

paragraph 23 (calculations of levy payments)5;

v

paragraph 26 (calculations of safety net payments)6;

vi

paragraph 30 (calculations relating to distribution of remaining balance)7; or

b

regulations made under any of the following provisions of Schedule 7B—

i

paragraph 7 (administrative arrangements for payments in respect of the central share);

ii

paragraph 9 (payments by billing authorities to major precepting authorities);

iii

paragraph 10 (administrative arrangements for payments by billing authorities to major precepting authorities);

iv

paragraph 28 (calculations of payments on account).

Amendment of Non-Domestic Rating (Rates Retention) Regulations 20136

1

The Non-Domestic Rating (Rates Retention) Regulations 20138 are amended as follows.

2

In paragraph 1(1) of Schedule 2 (qualifying relief for deduction from central share), in the definition of “red area” for “178” substitute “247”.

Amendment of Non-Domestic Rating (Designated Areas) Regulations 20137

1

The Non-Domestic Rating (Designated Areas) Regulations 20139 are amended as follows.

2

In regulation 2 (interpretation)—

a

at the appropriate place insert—

  • “Birmingham City Centre Designated Area” means the area designated in Schedule 1 by reference to the areas bounded externally by the outer edge of the blue line shown on maps 1 to 26;

  • “period of designation” means—

    1. a

      for the Birmingham City Centre Designated Area, the period of 33 years specified in regulation 4(2);

    2. b

      for any other designated area, the period of 25 years specified in regulation 4(1);

b

in the definition of “specified year” for “specified in regulation 4” substitute “of designation”.

3

In regulation 4 (period of designation)—

a

the existing provision is renumbered as paragraph (1);

b

in paragraph (1) as renumbered, before “remain” insert “, subject to paragraph (2),”;

c

after paragraph (1) as renumbered insert—

2

The designation of the Birmingham City Centre Designated Area has effect for the period of 33 years which comprises—

a

the period of 25 years specified in paragraph (1); and

b

a further period of 8 years beginning immediately after the end of the period specified in paragraph (1).

Amendment of Non-Domestic Rating (Designated Areas etc) Regulations 20168

1

The Non-Domestic Rating (Designated Areas etc) Regulations 201610 are amended as follows.

2

In regulation 3 (interpretation)—

a

at the appropriate place insert—

  • “Birmingham City Centre Curzon Extension Designated Area” means the area designated in Schedule 1 by reference to the areas bounded externally by the outer edge of the blue line shown on maps 87 to 102;

b

for the definition of “period of designation” substitute—

  • “period of designation” means—

    1. a

      for the Birmingham City Centre Curzon Extension Designated Area, the period of 30 years specified in regulation 4(3);

    2. b

      for any other designated area, the period of 25 years specified in regulation 4(2);

3

In paragraph (2) of regulation 4 (designation of areas)—

a

before “has effect” insert “subject to paragraph (3)”; and

b

omit the words in brackets.

4

After paragraph (2) of regulation 4 insert—

3

The designation of the Birmingham City Centre Curzon Extension Designated Area has effect for the period of 30 years which comprises—

a

the period of 25 years specified in paragraph (2); and

b

a further period of 5 years beginning immediately after the end of the period specified in paragraph (2).

We consent

Robert SymsAndrew GriffithsTwo of the Lords Commissioners of Her Majesty’s Treasury
Gavin BarwellMinister of StateDepartment for Communities and Local Government

SCHEDULE 1Local retention of non-domestic rates: designation of areas

Regulation 4

1

Each of the areas listed in column 2 of the table in this Schedule is designated by reference to the area or areas bounded externally by the outer edge of the blue line shown on the map specified in column 1 of the table.

2

A reference in this Schedule to a map is to one of the maps numbered 1 to 74 and entitled “Maps referred to in Schedule 1 to the Non-Domestic Rating (Designated Areas etc.) Regulations 2017”, of which prints, signed by a member of the Senior Civil Service in the Department for Communities and Local Government, are deposited and available for inspection at the offices of the Secretary of State for Communities and Local Government and, in relation to each map, at the offices of the billing authority to which the map relates.

3

For the purposes of determining a designated area, where part only of a hereditament is situated within an area shown on a map, the whole of the hereditament is taken to be included within that designated area.

Numbered map

(Column 1)

Designated area

(Column 2)

Billing authority

(Column 3)

Value of J (£)

(see paragraph 4(2) of Schedule 2)

(Column 4)

1

Marine Hub Cornwall – Hayle North Quay

Cornwall Council

73,887

2

Marine Hub Cornwall –Tolvaddon

Cornwall Council

0

3

Marine Hub Cornwall – Falmouth Docks

Cornwall Council

11,855

4

Dorset Innovation Park

Purbeck District Council

263,396

5

Basing View

Basingstoke and Deane Borough Council

2,131,596

6

EM3 Enterprise Zone – Louisburg

East Hampshire District Council

0

7

EM3 Enterprise Zone – Longcross Park

Runnymede Borough Council

602,682

8

Heart of the South West – Exeter Science Park

East Devon District Council

237,466

9

Heart of the South West – Sky Park, Exeter

East Devon District Council

401,476

10

Heart of the South West – Exeter Airport Business Park Expansion Area

East Devon District Council

0

11

Heart of the South West – Cranbrook Commercial Area

East Devon District Council

0

12

Heart of the South West – Huntspill Energy Park

Sedgemoor District Council

20,741

13

Hertfordshire Enviro-Tech Enterprise Zone – Kier Site

Dacorum Borough Council

0

14

Hertfordshire Enviro-Tech Enterprise Zone – Spencer`s Park (Phase 2) Site

Dacorum Borough Council

0

15

Hertfordshire Enviro-Tech Enterprise Zone – HCA Site

Dacorum Borough Council

0

16

Hertfordshire Enviro-Tech Enterprise Zone – DBC Site

Dacorum Borough Council

61,283

17

Hertfordshire Enviro-Tech Enterprise Zone – Crown Estates Site

St Albans City and District Council

40,656

18

Hertfordshire Enviro-Tech Enterprise Zone – Building Research Establishment Site

St Albans City and District Council

865,737

19

Hertfordshire Enviro-Tech Enterprise Zone – Rothamsted Research Site

St Albans City and District Council

90,719

20

Leeds City Region Enterprise Zones (Phase 2) – Langhthwaite Grange Extension

Wakefield Metropolitan District Council

0

21

Leeds City Region Enterprise Zones (Phase 2) – South Kirby Business Park

Wakefield Metropolitan District Council

0

22

Leeds City Region Enterprise Zones (Phase 2) – Clifton Business Park

Metropolitan Borough of Calderdale

0

23

Leeds City Region Enterprise Zones (Phase 2) – Lindley Moor East

Metropolitan Borough of Kirklees

0

24

Leeds City Region Enterprise Zones (Phase 2) – Lindley Moor West

Metropolitan Borough of Kirklees

0

25

Leeds City Region Enterprise Zones (Phase 2) – Moor Park, Mirfield

Metropolitan Borough of Kirklees

0

26

Leeds City Region Enterprise Zones (Phase 2) – Parry Lane

City of Bradford Metropolitan District Council

0

27

Leeds City Region Enterprise Zones (Phase 2) – Staithgate Lane

City of Bradford Metropolitan District Council

0

28

Leeds City Region Enterprise Zones (Phase 2) – Gain Lane

City of Bradford Metropolitan District Council

0

29

Great Yarmouth and Lowestoft Extension – Beacon Park

Great Yarmouth Borough Council

0

30

Great Yarmouth and Lowestoft Extension – Vanguard Point

Great Yarmouth Borough Council

6,536

31

Great Yarmouth and Lowestoft Extension – Havenshore Base South

Great Yarmouth Borough Council

2,709

32

Great Yarmouth and Lowestoft Extension – Victory Court

Great Yarmouth Borough Council

2,116

33

Great Yarmouth and Lowestoft Extension – Riverside Road: Phase 2

Waveney District Council

13,864

34

Great Yarmouth and Lowestoft Extension – Mobbs Way: Phase 2

Waveney District Council

28,980

35

North East Enterprise Zone – Hawthorn Prestige Business Park

Durham County Council

0

36

North East Enterprise Zone – Follingsby Business Park

Metropolitan Borough of Gateshead

0

37

North East Enterprise Zone – North Bank of the Tyne Extension

Newcastle City Council

0

38

North East Enterprise Zone – Newcastle International Airport Business Park

Newcastle City Council

0

39

North East Enterprise Zone – Fairmoor

Northumberland County Council

0

40

North East Enterprise Zone – Ashwood Business Park

Northumberland County Council

0

41

North East Enterprise Zone – Ramparts Business Park

Northumberland County Council

19,858

42

North East Enterprise Zone – Holborn Riverside Development

South Tyneside Council

0

43

North East Enterprise Zone – Tyne Dock Enterprise Park

South Tyneside Council

0

44

North East Enterprise Zone – Port of Sunderland

Sunderland City Council

0

45

Newhaven Enterprise Zone – East Quay

Lewes District Council

250,658

46

Newhaven Enterprise Zone – Eastside North

Lewes District Council

0

47

Newhaven Enterprise Zone – Eastside South

Lewes District Council

0

48

Newhaven Enterprise Zone – North Quay

Lewes District Council

171,780

49

Newhaven Enterprise Zone – Railway Quay

Lewes District Council

1,291

50

Newhaven Enterprise Zone – Bevan Funnell

Lewes District Council

61,903

51

Newhaven Enterprise Zone - Town Centre

Lewes District Council

290,863

52

Newhaven Enterprise Zone – Avis Way

Lewes District Council

1,303,156

53

North Kent Enterprise Zone – Northfleet Riverside East

Gravesham Borough Council

0

54

North Kent Enterprise Zone – Northfleet Riverside West

Gravesham Borough Council

0

55

North Kent Enterprise Zone – Ebbsfleet Central Northfleet Rise

Dartford Borough Council

0

56

North Kent Enterprise Zone – Ebbsfleet Central Northfleet Rise

Gravesham Borough Council

0

57

North Kent Enterprise Zone – Kent Medical Campus

Maidstone Borough Council

0

58

North Kent Enterprise Zone – Rochester Airport Technology Park

Medway Council

10,890

59

North Kent Enterprise Zone – Rochester Airport Technology Park

Tonbridge & Malling Borough Council

0

60

Bristol Temple Quarter Enterprise Zone Extension – Bristol Temple Quarter Extension Area

Bristol City Council

3,812,784

61

Bristol Temple Quarter Enterprise Zone Extension – Roseberry Place

Bath and North East Somerset Council

15,431

62

Bristol Temple Quarter Enterprise Zone Extension – Old Mills

Bath and North East Somerset Council

0

63

York Central Enterprise Zone – York Central Site

City of York Council

745,853

64

Blackpool Airport Corridor Enterprise Zone – Blackpool Airport Corridor

Blackpool Borough Council

1,503,000

65

Blackpool Airport Corridor Enterprise Zone – Blackpool Airport Corridor

Fylde Borough Council

870,000

66

Oceansgate – South Yard

Plymouth City Council

528,465

67

DY5 – Dudley’s Business and Innovation Enterprise Zone – Archill

Dudley Council

14,726

68

DY5 – Dudley’s Business and Innovation Enterprise Zone – Harts Hill

Dudley Council

19,222

69

DY5 – Dudley’s Business and Innovation Enterprise Zone – Canal Walk

Dudley Council

0

70

DY5 – Dudley’s Business and Innovation Enterprise Zone – Blackbrook Valley

Dudley Council

16,575

71

DY5 – Dudley’s Business and Innovation Enterprise Zone – Pensnett

Dudley Council

92,812

72

Loughborough & Leicester Science and Innovation Enterprise Zone – Loughborough University Science and Enterprise Park

Charnwood Borough Council

0

73

Loughborough & Leicester Science and Innovation Enterprise Zone – Charnwood Campus

Charnwood Borough Council

119,000

74

Loughborough & Leicester Science and Innovation Enterprise Zone – Leicester Waterside

Leicester City Council

2,334,075

SCHEDULE 2Calculations for designated areas

Regulation 5

PART 1Proportion of non-domestic rating income to be disregarded

1

1

Unless sub-paragraph (2) applies, the proportion of a billing authority’s non-domestic rating income in respect of a designated area for a specified year is the difference between the authority’s—

a

non-domestic rating income in respect of the designated area for that year; and

b

baseline amount in respect of the designated area for that year.

2

If the baseline amount is greater than or equal to the non-domestic rating income, the proportion is zero.

PART 2Calculation of non-domestic rating income

2

1

A billing authority’s non-domestic rating income in respect of a designated area for a specified year is the amount calculated in accordance with the formula—

(AB)+(CD)E+F+GHmath

where—

  • A is the total of the amounts credited to the authority’s collection fund income and expenditure account in that year in accordance with proper practices11 in respect of non-domestic rates payable under sections 43 and 45 of the 1988 Act in respect of hereditaments situated in the designated area;

  • B is the total of the amounts charged to the authority’s collection fund income and expenditure account in that year in accordance with proper practices in respect of non-domestic rates payable under sections 43 and 45 of the 1988 Act in respect of hereditaments situated in the designated area;

  • C is the amount of any transitional protection payments under paragraph 33(1) of Schedule 7B made to the authority in that year in respect of hereditaments situated in the designated area;

  • D is the amount of any transitional protection payments under paragraph 33(1) of Schedule 7B made by the authority in that year in respect of hereditaments situated in the designated area;

  • E is the total of the amounts credited to the authority’s collection fund income and expenditure account in that year in accordance with proper practices in respect of non-domestic rates payable under sections 43 and 45 of the 1988 Act in respect of hereditaments situated in the designated area to which sub-paragraph (2) applies;

  • F is the total of the amounts charged to the authority’s collection fund income and expenditure account in that year in accordance with proper practices in respect of non-domestic rates payable under sections 43 and 45 of the 1988 Act in respect of hereditaments situated in the designated area to which sub-paragraph (2) applies;

  • G is the amount of transitional protection payments under paragraph 33(1) of Schedule 7B made by the authority in that year in respect of hereditaments situated in the designated area to which sub-paragraph (2) applies;

  • H is the amount of transitional protection payments under paragraph 33(1) of Schedule 7B made to the authority in that year in respect of hereditaments situated in the designated area to which sub-paragraph (2) applies.

2

This sub-paragraph applies to a hereditament which—

a

is to be treated as one hereditament by virtue of regulations under section 64(3)(b) of the 1988 Act; and

b

would have constituted three or more separate hereditaments had regulations under section 64(3)(b) not been made.

3

In this paragraph, references to an authority’s collection fund income and expenditure account is a reference to a revenue account to which, in accordance with proper practices, are credited or charged amounts in respect of the authority’s income or expenditure relating to sums paid or to be paid into or payments met or to be met from the authority’s collection fund.

PART 3Calculation of the baseline amount

For the specified year beginning on 1st April 20173

For the specified year beginning on 1st April 2017, a billing authority’s baseline amount in respect of a designated area is the amount provided in column 4 of the table in Schedule 1 in relation to the designated area.

For a specified year that is not a revaluation year4

1

If a specified year is not a revaluation year, a billing authority’s baseline amount in respect of a designated area for the specified year is the amount calculated under sub-paragraph (2) or (3).

2

For the specified year beginning on 1st April 2018, the baseline amount is calculated in accordance with the formula—

J×K2K1math

where—

  • J is the amount provided in column 4 of the table in Schedule 1 in relation to the designated area;

  • K2 is the small business non-domestic rating multiplier for the specified year; and

  • K1 is the small business non-domestic rating multiplier for the preceding year.

3

For a subsequent specified year which is not a revaluation year, the baseline amount is calculated in accordance with the formula—

L×M2M1math

where—

  • L is the amount calculated under sub-paragraph (2), this sub-paragraph or paragraph 5(1) for the preceding year;

  • M2 is the small business non-domestic rating multiplier for the specified year; and

  • M1 is the small business non-domestic rating multiplier for the preceding year.

For a specified year that is a revaluation year other than the specified year beginning on 1st April 20175

1

If a specified year is a revaluation year other than the specified year beginning on 1st April 2017, a billing authority’s baseline amount in respect of a designated area for the specified year is the amount calculated in accordance with the formula—

N×(P×R2Q×R1)math

where—

  • N is the amount calculated in accordance with paragraph 4(2) or (3) for the preceding year;

  • P is the aggregate rateable values shown in the billing authority’s local list for 1st April in the specified year for the hereditaments, other than those hereditaments to which paragraph 2(2) applies, falling within the designated area;

  • Q is the aggregate rateable values shown in the billing authority’s local list for 31st March in the preceding year for the hereditaments, other than those hereditaments to which paragraph 2(2) applies, falling within the designated area;

  • R2 is the small business non-domestic rating multiplier for the specified year;

  • R1 is the small business non-domestic rating multiplier for the preceding year.

2

For the purposes of this paragraph, the rateable value of a hereditament shown in the billing authority’s local list for 31st March in the preceding year is taken to be the rateable value that would have been shown in that list for that day had the circumstances relating to that hereditament been as they were on 1st April in the specified year.

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations designate areas in England (“designated areas”) for the purpose of paragraph 39(1)(a) of Schedule 7B to the Local Government Finance Act 1988 (“the 1988 Act”) (local retention of non-domestic rates). They provide rules for calculating in respect of a billing authority in England all or part of whose area falls within a designated area—

a

the billing authority’s non-domestic rating income in respect of the designated area for a specified year; and

b

the proportion of that non-domestic rating income that is to be disregarded for the purpose of specified calculations under Schedule 7B to the 1988 Act.

The calculations are to be made separately for each designated area within which a billing authority’s area falls.

Regulation 4(1) and Schedule 1 designate the areas. The designation of the areas is made by reference to maps which are available for inspection at the offices of the Secretary of State for Communities and Local Government or at the office of the billing authority.

Regulation 4(2) provides that the designation of the areas takes effect on 1st April 2017 and has effect for a period of 25 years beginning on that date (period of designation). The effect of specifying the period of designation is to trigger paragraph 39(9) of Schedule 7B to the 1988 Act which prevents the revocation of the Regulations and certain kinds of amendments to the Regulations until after the end of that period.

Regulation 5 and Schedule 2 provide the rules for the calculations.

Part 1 of Schedule 2 provides rules for calculating the proportion of non-domestic rating income in respect of a designated area for a specified year that is to be disregarded for specified calculations under Schedule 7B to the 1988 Act. The proportion is calculated by subtracting the baseline amount in respect of the designated area for the specified year (calculated under Part 3 of Schedule 2) from the non-domestic rating income in respect of that area for that year (calculated under Part 2 of Schedule 2).

Non-domestic rating income in respect of a designated area for a specified year is essentially the amounts payable to a billing authority under sections 43 and 45 of the 1988 Act for that year in respect of hereditaments situated in the designated area, subject to a number of adjustments.

The baseline amount in respect of a designated area for the specified year beginning on 1st April 2017 is the amount specified in column 4 of the table in Schedule 1 (this amount represents the existing non-domestic rating income for the designated area). For each subsequent specified year, the baseline amount is an uprated amount representing growth in the billing authority’s income in the designated area.

Regulation 6 amends the definition of “red area” in Schedule 2 to the Non-Domestic Rating (Rates Retention) Regulations 2013 (S.I. 2013/452) to include the areas designated under these Regulations which fall within that definition. In that Schedule, a “red area” is an area for which billing authorities are compensated for business rates relief they give to ratepayers.

Regulation 7 amends the Non-Domestic Rating (Designated Areas) Regulations 2013 (S.I. 2013/107) to extend the period of designation of the Birmingham City Centre Designated Area by 8 years.

Regulation 8 amends the Non-Domestic Rating (Designated Areas etc) Regulations 2016 (S.I. 2016/317) to extend the period of designation of the Birmingham City Centre Curzon Extension Designated Area by 5 years.

No separate impact assessment has been prepared for these Regulations, but the impact assessment prepared for the Local Government Finance Act 2012 (c. 17) is relevant:

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/8470/2054063.pdf