Local Government Finance Act 1988

SCHEDULE 7 Non-Domestic Rating: Multipliers

Section 56. PART A1 Non-Domestic Rating Multipliers: England CHAPTER 1 Introduction A1 This Part of this Schedule has effect to determine, in relation to England, for each chargeable financial year— (a) the non-domestic rating multiplier, ... (b) the small business non-domestic rating multiplier , and (c) together with regulations under this Part, other non-domestic rating multipliers. A2 In this Part— (a) Chapter 2 makes provision about the calculation of the non-domestic rating multiplier; (b) Chapter 3 makes provision about the calculation of the small business non-domestic rating multiplier; (ba) Chapter 3A makes provision about the making of regulations which provide for the calculation of other non-domestic rating multipliers; (c) Chapter 4 makes provision about the making, and the giving of notice, of such calculations; (d) Chapter 5 makes provision about the interpretation of terms used in this Part; (e) Chapter 6 makes provision about regulations under this Part. CHAPTER 2 The non-domestic rating multiplier Revaluation years A3 The non-domestic rating multiplier for a revaluation year is to be calculated in accordance with the formula— A×C×ED×F Other years A4 (1) The non-domestic rating multiplier for a chargeable financial year other than a revaluation year is— (a) the default amount, or (b) if the Secretary of State makes an adjustment to that amount under sub-paragraph (3), that amount as adjusted. (2) The default amount is to be calculated in accordance with the formula— A×CD (3) The Secretary of State makes an adjustment to the default amount by adjusting it to reflect the extent to which the Secretary of State’s last estimate of the total mentioned in paragraph A10(6) or (7) appears to the Secretary of State to differ from the actual total. CHAPTER 3 The small business non-domestic rating multiplier Revaluation years A5 The small business non-domestic rating multiplier for a revaluation year is to be calculated in accordance with the formula— B×C×ED×F Other years A6 (1) The small business non-domestic rating multiplier for a chargeable financial year other than a revaluation year is— (a) the default amount, or (b) if the Secretary of State makes an adjustment to that amount under sub-paragraph (3), that amount as adjusted. (2) The default amount is to be calculated in accordance with the formula— B×CD (3) The Secretary of State makes an adjustment to the default amount by adjusting it to reflect the extent to which the Secretary of State’s last estimate of the total mentioned in paragraph A10(6) or (7) appears to the Secretary of State to differ from the actual total. Chapter 3A Other non-domestic rating multipliers A6A (1) The Treasury may by regulations make provision for the calculation of multipliers applicable in relation to England that produce multipliers for a given financial year that are— (a) higher, but not more than 0.1 higher, than the non-domestic rating multiplier for that year, or (b) lower than the non-domestic rating multiplier for that year, but not more than 0.2 lower than the small business non-domestic rating multiplier for that year. (2) Regulations under sub-paragraph (1)(b)— (a) may not provide for the calculation of more than two multipliers; (b) may provide for adjustments to a calculation so that it produces a different multiplier for a given financial year for the purposes of Schedule 4ZB or 5A (or both) to the multiplier for that year for the purposes of Schedule 4ZA. CHAPTER 4 Making and giving notice of calculations etc A7 (1) The Secretary of State must— (a) calculate each multiplier about which provision is made by or under this Part of this Schedule for a chargeable financial year, and (b) as soon as reasonably practicable after doing so, serve on each billing authority a notice stating the multipliers as so calculated. (2) A notice under sub-paragraph (1)(b) must show how any calculation has been made and contain details of— (a) any estimates that have been made under paragraph A10(6) or (7), including the date determined under paragraph A11(3) for the purpose of making those estimates, and (b) any adjustments that have been made under paragraph A4(3) or A6(3) (3) Where the chargeable financial year is one for which the Secretary of State has calculated a figure for D under paragraph A10(5)(b), the notice under sub-paragraph (1)(b) must contain that figure. A8 A calculation made by the Secretary of State under paragraph A7 is invalid if it is made at a time when regulations under paragraph A10(4)(b) have not come into force which, if they had come into force, would be effective in relation to the year. A9 In calculating a multiplier a part of a whole (if any) is to be calculated to three decimal places only. CHAPTER 5 Interpretation A10 (1) This paragraph applies for the purposes of this Part of this Schedule. (2) “A” is the non-domestic rating multiplier for the financial year preceding the year concerned. (3) “B” is the small business non-domestic rating multiplier for the financial year preceding the year concerned. (4) “C” is— (a) the consumer prices index for September of the financial year preceding the year concerned, or (b) where the Treasury so provides by regulations in relation to the year and multiplier concerned, a figure which is less than the index mentioned in paragraph (a) and which is specified in, or calculated in a manner specified in, the regulations. (5) “D” is— (a) the consumer prices index for September of the financial year which precedes that preceding the year concerned (“the first year”), or (b) where the base month for the consumer prices index for September of the first year differs from that for the index for September of the year which precedes the year concerned (“the second year”), the figure which the Secretary of State calculates 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. (6) “E” is the number of whole pounds in the Secretary of State’s 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) “F” is the number of whole pounds in the Secretary of State’s 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 day once all alterations to those lists have been made. (8) “Revaluation year” means a chargeable financial year at the beginning of which new lists must be compiled (see sections 41(2A) and 52(2A)). A11 (1) References in paragraph A10 to the consumer prices index are to— (a) the general index of consumer prices (for all items) published by the Statistics Board for the month concerned, or (b) if that index is not published for the month concerned, any substituted index or index figures published by the Board. (2) For the purposes of paragraph A10(5)(b) the base month for the consumer 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. (3) Estimates under paragraph A10(6) and (7) are to be made on the basis of information available to the Secretary of State on such date as the Secretary of State determines. (4) The reference in paragraph A10(7)(a) to rateable values which will be shown in lists for the first day of the chargeable 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. CHAPTER 6 Regulations A12 (1) Regulations under this Part of this Schedule are to be made by statutory instrument. (2) A statutory instrument containing (whether alone or with other provision) regulations under paragraph A6A(1)(a) may not be made unless a draft of the instrument has been laid before and approved by a resolution of the House of Commons. (3) A statutory instrument to which sub-paragraph (2) or paragraph 9B(3) does not apply containing regulations under paragraph A6A or A10(4)(b) is subject to annulment in pursuance of a resolution of the House of Commons. PART A2 NON-DOMESTIC RATING MULTIPLIERS: WALES Introduction A13 This Part of this Schedule has effect to determine, in relation to Wales, the non-domestic rating multiplier for each chargeable financial year. Calculation of non-domestic rating multiplier: revaluation years A14 (1) The non-domestic rating multiplier for a revaluation year is to be calculated in accordance with the formula— A×B×DC×E. (2) In sub-paragraph (1)— (a) “A” is the non-domestic rating multiplier for the financial year preceding the year concerned; (b) “B” is the consumer prices index for September of the financial year preceding the year concerned; (c) “C” is— (i) the consumer prices index for September of the financial year which precedes that preceding the year concerned, or (ii) 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), 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; (d) “D” is the number of whole pounds in the Welsh Ministers’ estimate of the total of the appropriate rateable values of all appropriate hereditaments, where— (i) 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, and (ii) appropriate hereditaments are those which will be shown in lists for that day once all alterations to those lists have been made; (e) “E” is the number of whole pounds in the Welsh Ministers’ estimate of the total of the appropriate rateable values of all appropriate hereditaments, where— (i) 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 (including 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), and (ii) appropriate hereditaments are those which will be shown in lists for that first day once all alterations to those lists have been made. (3) The Welsh Ministers must make estimates under sub-paragraph (2)(d) and (e) on the basis of information available to them on such date as they determine. (4) But this paragraph does not apply for the purposes of— (a) Schedules 4ZA and 4ZB, in respect of a hereditament of a description specified in regulations under paragraph A16(1)(a); (b) Schedule 5A, in respect of an amount of a rateable value shown against the name of a designated person in the central non-domestic rating list specified in regulations under paragraph A16(1)(b). Calculation of non-domestic rating multiplier: other years A15 (1) The non-domestic rating multiplier for a chargeable financial year other than a revaluation year is— (a) the default amount, or (b) if the Welsh Ministers make an adjustment to that amount under sub-paragraph (4), that amount as adjusted. (2) The default amount is to be calculated in accordance with the formula— A×BC. (3) In sub-paragraph (2), “A”, “B” and “C” have the meanings given in paragraph A14. (4) The Welsh Ministers may make an adjustment to the default amount to reflect the extent to which their last estimate of the total mentioned in paragraph A14(2)(d) or (e) appears to them to differ from the actual total. (5) But this paragraph does not apply for the purposes of— (a) Schedules 4ZA and 4ZB, in respect of a hereditament of a description specified in regulations under paragraph A16(1)(a); (b) Schedule 5A, in respect of an amount of a rateable value shown against the name of a designated person in the central non-domestic rating list specified in regulations under paragraph A16(1)(b). Calculation of differential multipliers A16 (1) The Welsh Ministers may by regulations provide that the non-domestic rating multiplier for a chargeable financial year in respect of— (a) a description, specified in regulations, of hereditaments on local non-domestic rating lists, or (b) an amount (or amounts), of a rateable value shown against the name of a designated person in the central non-domestic rating list, is to be calculated in accordance with the formula— M×N. (2) In sub-paragraph (1)— (a) “M” is the non-domestic rating multiplier for the chargeable financial year under paragraph A14 or A15 (as the case may be); (b) “N” is a number prescribed by the Welsh Ministers in regulations. (3) Regulations under this paragraph may prescribe different values for N in relation to— (a) different specified descriptions of hereditaments on local non-domestic rating lists; (b) different specified amounts of rateable values shown against the names of designated persons in the central non-domestic rating list. (4) But regulations under this paragraph may only specify descriptions of hereditaments on local non-domestic rating lists by reference to one or more of— (a) the rateable value shown in the list for— (i) the chargeable day concerned, or (ii) the first day of the financial year, as regards a hereditament; (b) the location shown in the list as regards a hereditament; (c) any description shown in the list for— (i) the chargeable day concerned, or (ii) the first day of the financial year, as regards a hereditament. (5) Regulations under sub-paragraph (1)(b) may specify an amount of a rateable value by reference to a range of amounts. Calculation of differential multipliers: supplementary A17 (1) Where paragraph 3 of Schedule 4ZA (improvement relief) applies in respect of a hereditament, regulations under paragraph A16 apply in respect of that hereditament as though the amount of the rateable value shown for the day in respect of the hereditament under section 42(4) is the amount of that rateable value minus G. (2) Where paragraph 3 of Schedule 5A (improvement relief) applies, regulations under paragraph A16 apply in respect of the amount of the rateable value shown for the day against the name of the ratepayer under section 53(3) as though the amount shown for that day is the amount of that rateable value minus G. (3) In sub-paragraphs (1) and (2), “G” is the amount prescribed, or calculated in accordance with provision prescribed, by the Welsh Ministers under paragraph 10(7) of Schedule 4ZA or paragraph 6(6) of Schedule 5A (as the case may be). (4) If— (a) regulations are made under paragraph A16(3)(a), and (b) more than one of the descriptions specified in the regulations applies in respect of a hereditament, that hereditament is to be treated as though only the description in respect of which the value of N is lowest applies. Welsh Ministers’ power to alter the calculations for non-domestic rating multipliers A18 The Welsh Ministers may by regulations amend, repeal or disapply paragraph A14 or A15 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). Making and giving notice of calculations etc. A19 (1) The Welsh Ministers must, in advance of each chargeable financial year— (a) calculate for that year— (i) the non-domestic rating multiplier under paragraph A14 or A15 (as the case may be), and (ii) if regulations under paragraph A16 are in force, the non-domestic rating multiplier under that paragraph, and (b) as soon as is reasonably practicable after doing so, serve on each billing authority a notice stating the non-domestic rating multipliers as calculated under paragraph (a). (2) In calculating a multiplier, a part of a whole (if any) is to be calculated to three decimal places only. (3) The notice must show how any calculation has been made and contain details of any estimates or adjustments that have been made. (4) Where the financial year is one for which the Welsh Ministers have calculated a figure for C under paragraph A14(2)(c)(ii), the notice must contain the figure they have calculated. (5) Where the financial year is a revaluation year, the notice must specify the date determined under paragraph A14(3) for the purpose of making estimates under paragraph A14(2)(d) and (e). (6) A calculation made by the Welsh Ministers under this paragraph is invalid if made at a time when regulations under paragraph A18 which are effective in relation to the year have not come into force. Interpretation A20 (1) In this Part— (a) “the consumer prices index” means 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; (b) “the base month” for the consumer 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. (2) In this Part “revaluation year means a chargeable financial year at the beginning of which new lists must be compiled (see sections 41ZA(3) and 52ZA(3)). Part II Special Authority’s Multipliers 9 (1) A special authority’s non-domestic rating multiplier for a chargeable financial year shall be such as is set for the year by the authority in accordance with this Part of this Schedule. (2) The multiplier must be expressed as a figure in which a part of a whole (if any) is expressed to three decimal places only. (3) The multiplier must be not greater than the required maximum for the year. (4) The required maximum for the year shall be calculated in accordance with the formula— A+B(C-D)E x F where— A is the non-domestic rating multiplier for the year ... determined in accordance with Part A1 of this Schedule, B is a percentage prescribed for the year by order made by the Secretary of State, C is the amount calculated (or last calculated) for the year by the authority under section 31A(4) of the Local Government Finance Act 1992, D is an amount determined by the Secretary of State for the year and notified by him to the authority before 1 March in the preceding financial year, E is the total of the rateable values shown in the authority’s local non-domestic rating list on 31 December in the preceding financial year, and F is a factor determined by the Secretary of State for the year and notified by him to the authority before 1 March in the preceding financial year. (5) An order under sub-paragraph (4) above in its application to a particular financial year (including an order amending or revoking another) shall not be effective unless it comes into force before 1 March in the preceding financial year. 9A (1) A special authority’s small business non-domestic rating multiplier for a chargeable financial year shall be set by it in accordance with the formula— A×BC (2) In sub-paragraph (1) above— (a) A is the special authority’s non-domestic rating multiplier for the year under paragraph 9 above, (b) B is the small business non-domestic rating multiplier for the year determined in accordance with Part A1 of this Schedule, and (c) C is the non-domestic rating multiplier for the year ... determined in accordance with that Part. (3) The multiplier must be expressed as a figure in which a part of a whole (if any) is expressed to three decimal points only. 9B (1) The Treasury may by regulations make provision in accordance with which a special authority is to set multipliers for a given financial year— (a) that are— (i) higher, but not more than 0.1 higher, than the authority’s non-domestic rating multiplier for that year, or (ii) lower than the authority’s non-domestic rating multiplier for that year, but not more than 0.2 lower than the authority’s small business non-domestic rating multiplier for that year, and (b) which are for other billing authorities calculated in accordance with regulations under paragraph A6A. (2) Regulations under this paragraph are to be made by statutory instrument. (3) A statutory instrument containing (whether alone or with other provision) regulations under sub-paragraph (1)(a)(i) may not be made unless a draft of the instrument has been laid before and approved by a resolution of the House of Commons. (4) A statutory instrument to which paragraph A12(2) or sub-paragraph (3) of this paragraph does not apply containing regulations under this paragraph is subject to annulment in pursuance of a resolution of the House of Commons. 10 (1) Where a special authority has set multipliers for a financial year (whether originally or by way of substitute) it may set multipliers in substitution if, and only if, they have been quashed. (2) Any multiplier set in substitution must be set in accordance with paragraph 9 or 9A , or regulations under paragraph 9B, above. (3) Where a special authority sets a multiplier in substitution under this paragraph (a new multiplier) anything paid to it by reference to the multiplier for which it is substituted (the old multiplier) shall be treated as paid by reference to the new multiplier. (4) But if the old multiplier exceeds the new multiplier, the following shall apply as regards anything paid if it would not have been paid had the old multiplier been the same as the new multiplier— (a) it shall be repaid if the person by whom it was paid so requires; (b) in any other case it shall (as the authority determines) either be repaid or be credited against any subsequent liability of the person to pay anything to it by way of a non-domestic rate. 11 (1) Where a special authority has set a multiplier in accordance with paragraph 9 or 9A , or regulations under paragraph 9B, above (whether originally or by way of substitute) it shall, before the end of the period of 21 days beginning with the day of doing so, publish a notice of the multiplier in at least one newspaper circulating in its area. (2) Failure to comply with sub-paragraph (1) above does not make a multiplier invalid.