2023 No. 268
The Non-Domestic Rating (Rates Retention: Miscellaneous Amendments) Regulations 2023
Made
Coming into force in accordance with regulation 1
The Secretary of State makes these Regulations in exercise of the powers conferred by section 143(1) and (2) of, and paragraphs 6, 22, 25 and 33 of Schedule 7B to, the Local Government Finance Act 19881.
A draft of this instrument was laid before and approved by a resolution of each House of Parliament in accordance with section 143(9D)2 of that Act.
Citation, commencement and extent1
1
These Regulations may be cited as the Non-Domestic Rating (Rates Retention: Miscellaneous Amendments) Regulations 2023.
2
Subject to paragraph (3), these Regulations come into force on the day after the day on which they are made.
3
Regulation 10(2)(b) and (e) and (3)(b) come into force on 1st April 2023.
4
These Regulations extend to England and Wales.
Amendment of the Non-Domestic Rating (Transitional Protection Payments) Regulations 20132
1
The Non-Domestic Rating (Transitional Protection Payments) Regulations 20133 are amended as follows.
2
In regulation 2(2) (rules for calculation of deemed rating income), after sub-paragraph (d) insert—
e
section 43(4I) (public lavatories relief) of the 1988 Act4 does not apply
3
In regulation 3(2) (rules for calculation of actual rating income), after sub-paragraph (d) insert—
e
section 43(4I) (public lavatories relief) of the 1988 Act does not apply
Amendment of the Non-Domestic Rating (Rates Retention) Regulations 20133
In the Non-Domestic Rating (Rates Retention) Regulations 20135, for paragraph 1(2)(b) of Schedule 1 (non-domestic rating income) substitute—
b
X, where the value of X—
i
for the financial year beginning on 1st April 2013 is £10,538,000;
ii
for the financial year beginning on 1st April 2023 is £12,515,000;
iii
for any other year is determined by the formula—
Where—
X1 is the value of X for the preceding year;
S2 is the small business non-domestic rating multiplier for the relevant year;
S1 is the small business non-domestic rating multiplier for the preceding year.
Amendment of the Non-Domestic Rating (Levy and Safety Net) Regulations 20134
The Non-Domestic Rating (Levy and Safety Net) Regulations 20136 are amended in accordance with regulations 5 to 9.
Amendment to regulation 45
Amendment to regulation 56
For regulation 5(3) (business rates baseline and baseline funding level) substitute—
3
Unless paragraph (3ZA), (3ZB) or (3ZC) applies, the baseline funding level for an authority for—
a
the years commencing on 1st April 2014, 1st April 2015, 1st April 2016 and the years commencing on or after 1st April 2018, other than as provided for by sub-paragraph (b), is the amount calculated in accordance with the formula—
b
the year commencing on 1st April 2023 is the amount calculated in accordance with the formula—
Where—
A is the baseline funding level for the year immediately preceding the relevant year;
B2 is the small business non-domestic rating multiplier for the relevant year;
B1 is the small business non-domestic rating multiplier for the preceding year.
Amendment to Schedule 17
1
Schedule 1 (calculation of retained rates income) is amended as follows.
2
In paragraph 1(1)—
a
for the formula which appears immediately after the opening words substitute—
b
in the definition of P9—
i
in paragraph (a), for “or (g)” substitute “, (g) or (h)”
;
ii
after paragraph (g), insert—
h
where the billing authority is listed in the table in Schedule 7, for the relevant year beginning on 1st April 2023 the amount specified in column B of that table;
c
in the definition of Q10—
i
in paragraph (a), for “or (g)” substitute “, (g) or (h)”
;
ii
after paragraph (g), insert—
h
where the billing authority is listed in the table in Schedule 7, for the relevant year beginning on 1st April 2023 the amount specified in column C of that table;
d
after the definition of Q, insert—
S is the amount calculated in accordance with sub-paragraph (4D) in respect of the years commencing on or after 1st April 2021;
e
in the definition of Y, in paragraph (b) after the words “paragraph (c)” insert “or (d)”
.
3
After paragraph 1(4C), insert—
4D
The amount calculated in accordance with this sub-paragraph is the amount which is the difference between—
a
i
the total of the amounts credited to the billing authority’s collection fund income and expenditure account in the relevant 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—
aa
a day in that year, and
bb
a day in a previous year where the amount was not credited in a previous year; less
ii
the total of the amounts charged to the billing authority’s collection fund income and expenditure account in the relevant 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—
aa
a day in that year, and
bb
a day in a previous year where the amount was not charged in a previous year; and
b
the amount that would have been calculated under paragraph (a) if section 43(4I) were omitted.
4
In paragraph 2—
a
for sub-paragraphs (a) and (b) substitute—
b
in the definition of W, after paragraph (b) insert—
c
for the relevant year beginning on 1st April 2022, the sum of the amounts of relief awarded under section 47 of the 1988 Act by all the billing authorities required to make payments to the major precepting authority for the relevant year under Part 4 of Schedule 7B to the 1988 Act, where the relief has been awarded in accordance with the following guidance issued by the Secretary of State—
i
“COVID-19 Additional Relief Fund (CARF): Local Authority Guidance” published on 15th December 202111;
ii
“2022/23 Retail, Hospitality and Leisure Relief Scheme: local authority guidance” published on 20th December 202112;
iii
“Extension of Transitional Relief and Supporting Small Business Relief for small and medium properties” published on 20th December 202113;
d
for the relevant year beginning on 1st April 2023, the sum of the amounts of relief awarded under section 47 of the 1988 Act by all the billing authorities required to make payments to the major precepting authority for the relevant year under Part 4 of Schedule 7B to the 1988 Act, where the relief has been awarded in accordance with the following guidance issued by the Secretary of State—
i
“Business Rates Relief: 2023/24 Retail, Hospitality and Leisure Scheme” published on 21 December 202214, and
ii
“Business Rates Relief: 2023 Supporting Small Business Relief, local authority guidance” published on 21 December 202215;
c
after the definition of W insert—
Y is the sum of the amounts specified as S for the relevant year in accordance with paragraph 1(1) for each of the billing authorities that is required to make payments to the major precepting authority for the relevant year under Part 4 of Schedule 7B to the 1988 Act;
Amendment to Schedule 68
At the end of the table in Schedule 6 (table of authorities, business rates baselines, baseline funding levels and values of A and Y)16 insert the following rows—
North Yorkshire
1st April 2023
88,097,694
1,151,874
66%
Somerset
1st April 2023
85,420,958
954,805
67%
Cumberland
1st April 2023
62,937,929
480,778
64.8%
Westmorland and Furness
1st April 2023
40,604,197
497,735
64%
Cumbria Commissioner Fire and Rescue Authority
1st April 2023
5,860,300
0
0
Insertion of Schedule 79
After Schedule 6 insert Schedule 7 which is set out in the Schedule to these Regulations.
Amendment of the Non-Domestic Rating (Rates Retention and Levy and Safety Net) (Amendment) and (Levy Account: Basis of Distribution) Regulations 201910
1
In the Non-Domestic Rating (Rates Retention and Levy and Safety Net) (Amendment) and (Levy Account: Basis of Distribution) Regulations 201917, the table in Schedule 5 (table of authorities, values for B and C) is amended as follows.
2
Under the heading “The council for the local government area of—”—
a
omit the rows relating to—
i
Corby;
ii
Daventry;
iii
East Northamptonshire;
iv
Kettering;
v
Northampton;
vi
Northamptonshire;
vii
South Northamptonshire;
viii
Wellingborough;
b
omit the rows relating to—
i
Allerdale;
ii
Barrow-in-Furness;
iii
Carlisle;
iv
Copeland;
v
Cumbria;
vi
Eden;
vii
South Lakeland;
c
in the row relating to Isle of Wight—
i
for “43,031,069” substitute “40,601,927”
;
ii
for “28,627,393” substitute “27,011,351”
;
d
in the appropriate places insert the following rows—
North Northamptonshire
74,560,768
49,603,239
West Northamptonshire
65,840,725
43,802,034
e
in the appropriate places insert the following rows—
Cumberland
78,567,018
52,268,488
Westmorland and Furness
50,707,778
33,734,497
3
Under the heading “The fire and rescue authority for the area of—”—
a
for the row relating to Hampshire substitute—
Hampshire and Isle of Wight
21,557,536
14,341,639
b
after the row relating to Cleveland insert the following row—
Cumbria
9,192,835
6,115,742
Signed by authority of the Secretary of State for Levelling Up, Housing and Communities
SCHEDULE
SCHEDULE 7Table of Authorities, Values for P and Q
Column A
Column B
Column C
The council for the local government area of—
Value of P for the year commencing on 1st April 2023 (£)
Value of Q for the year commencing on 1st April 2023 (£)
Bath and North East Somerset
0
10,246,003
Birmingham
157,923,336
0
Bolton
27,244,993
0
Bristol
0
8,306,669
Bury
11,930,214
0
Cornwall
29,212,205
0
Coventry
22,146,911
0
Dudley
25,415,302
0
Halton
11,633,714
0
Knowsley
42,380,192
0
Liverpool
81,579,446
0
Manchester
6,979,264
0
Oldham
38,189,383
0
Rochdale
30,236,558
0
Salford
30,114,193
0
Sandwell
52,881,831
0
Sefton
31,110,665
0
Solihull
0
21,568,127
South Gloucestershire
0
29,246,679
St Helens
22,332,440
0
Stockport
4,414,422
0
Tameside
29,516,104
0
Trafford
0
38,717,303
Walsall
38,971,174
0
Wigan
34,384,661
0
Wirral
51,559,955
0
Wolverhampton
41,367,391
0
(This note is not part of the Regulations)