The Non-Domestic Rating (Designated Areas) Regulations 2023

Regulation 3

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

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 red 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 21 and entitled “Maps referred to in Schedule 1 to the Non-Domestic Rating (Designated Areas) Regulations 2023” of which prints, signed by a member of the Senior Civil Service in the Department for Levelling Up, Housing and Communities, are deposited and available for inspection at the offices of the Secretary of State for Levelling Up, Housing and Communities and, in relation to each map, at the offices of the billing authority to which the map relates as specified in column 3 of the table in this Schedule.

3.  For the purposes of determining a designated area—

(a) subject to sub-paragraph (b), 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;

(b) the whole of the following hereditaments are taken to be excluded from that designated area—

(i) the hereditament owned on 1st January 2023 by Uniper UK Limited (company number 02796628)(1) , situated in the area of Rushcliffe Borough Council and known as Ratcliffe-on-Soar Power Station;

(ii) the hereditament owned on 1st January 2023 by East Midlands International Airport Limited (company number 02078271)(2), situated in the area of North West Leicestershire District Council and known as East Midlands International Airport.

Numbered map (Column 1)	Designated area (Column 2)	Billing authority (Column 3)	Value of K (£) (see paragraph 5 of Schedule 2) (Column 4)
1	Teesworks East	Redcar and Cleveland Borough Council	0
2	Teesworks West	Redcar and Cleveland Borough Council	0
3	Wilton International	Redcar and Cleveland Borough Council	0
4	Harwich	Tendring District Council	841,447
5	Gateway 14	Mid-Suffolk District Council	0
6	Felixstowe	East Suffolk Council	774,808
7	Wirral Waters	Wirral Metropolitan Borough Council	988,702
8	3MG	Halton Borough Council	0
9	Parkside	St Helens Borough Council	0
10	Southampton Water – Fawley Complex	New Forest District Council	608,052
11	Southampton Water – Fawley Waterside	New Forest District Council	470,641
12	Southampton Water-Marchwood Port & Strategic Land Reserve	New Forest District Council	1,116,160
13	Southampton Water –Redbridge	Southampton City Council	542,114
14	Navigator Quarter	Eastleigh Borough Council	0
15	Dunsbury Park	Havant Borough Council	2,396,500
16	East Midlands Gateway and Industrial Cluster	North West Leicestershire District Council	887,438
17	Ratcliffe on Soar	Rushcliffe Borough Council	0
18	East Midlands Intermodal Park (EMIP)	South Derbyshire District Council	21,457
19	South Yard	Plymouth City Council	0
20	Langage	South Hams District Council	0
21	Sherford	South Hams District Council	0

Regulations 2 and 4

SCHEDULE 2 Calculations for designated areas

PART 1 Proportion 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 2 Calculation 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—

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 practices(3) 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 made 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 are a reference to a revenue account to which, in accordance with proper practices, amounts are credited or charged 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 3 Calculation of the baseline amount

For a specified year that is a revaluation year

3.—(1) Subject to sub-paragraph (2), if a specified year is a revaluation year 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—

(2) For the specified year beginning with 1st April 2023, a billing authority’s baseline amount is calculated in accordance with the formula—

For a specified year that is not a revaluation year

4.  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 in accordance with the formula—

Interpretation of Part 3

5.—(1) In this Part—

J is the baseline amount calculated for the preceding year;

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

L 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;

M 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;

N₁ is the small business non-domestic rating multiplier for the preceding year;

N₂ is the small business non-domestic rating multiplier for the specified year.

(2) For the purposes of paragraph 3 of this Schedule, 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.

(1)

A private limited company registered in England and Wales and whose registered office address is Compton House 2300 The Crescent, Birmingham Business Park, Birmingham B37 7YE.

(2)

A private limited company registered in England and Wales and whose registered office address is Pathfinder House, Castle Donington, Derby DE74 2SA.

(3)

The meaning of proper practices is given in section 21 of the Local Government Act 2003 (c. 26), which applies to these Regulations by virtue of subsection (4)(e) of that section.