The Non-Domestic Rating (Rates Retention: Miscellaneous Amendments) Regulations 2024

3 Amendment of the Non-Domestic Rating (Levy and Safety Net) Regulations 2013

(1) The Non-Domestic Rating (Levy and Safety Net) Regulations 2013 are amended as follows. (2) In regulation 2(1) (interpretation)— (a) in the definition of “business rates baseline”— (i) in sub-paragraph (c), in the second place it occurs, omit “and” ; (ii) in sub-paragraph (d), for “a year commencing on or after 1st April 2021” substitute “the year commencing on 1st April 2021 or 2022”; (iii) after sub-paragraph (d), insert— (e) for the year commencing on 1st April 2023, the amount specified with respect to an authority by regulation 5 and Schedule 7; ; (b) in the definition of “small business non-domestic rating multiplier”, for “determined under Part 1 of” substitute “calculated by the Secretary of State under”; (c) in the appropriate places, insert the following definitions— “non-domestic rating multiplier” in relation to a year means the non-domestic rating multiplier for the year calculated by the Secretary of State under Schedule 7 to the 1988 Act; ; “small business hereditament” means a hereditament for which on 1st April 2023 a rateable value of less than £51,000 is shown on a local non-domestic rating list; ; “standard hereditament” means a hereditament for which on 1st April 2023 a rateable value greater than £50,999 is shown on a local non-domestic rating list. . (3) In regulation 4(1) (meaning of retained rates income for purposes of levy and safety net calculations), after “Schedule 1B”, insert “, Schedule 6A”. (4) In regulation 5 (business rates baseline and baseline funding level)— (a) after paragraph (1C), insert— (1D) For the year commencing on 1st April 2023, the business rates baseline of an authority listed in column A of the table in Schedule 7 is the amount specified with respect to that authority in column D of that table. ; (b) in paragraph (3)— (i) in sub-paragraph (a), for the words from “and the years” to “(b),” substitute “, 1st April 2018, 1st April 2019, 1st April 2020, 1st April 2021 and 1st April 2022”; (ii) in sub-paragraph (b)— (aa) in the definition of A, for “year immediately preceding the relevant” substitute “preceding”; (bb) in the definition of B1, for “year.” substitute “year;”; (iii) after sub-paragraph (b), insert— (c) the years commencing on or after 1st April 2024 is the amount calculated in accordance with the formula— A × D × B 2 ± E × C 2 D × B 1 ± E × C 1 where— A is the baseline funding level for the preceding 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; C2 is the non-domestic rating multiplier for the relevant year; C1 is the non-domestic rating multiplier for the preceding year; D is— in the case of a billing authority, the sum of the total rateable value of all small business hereditaments shown in the authority’s list on 1st April 2023; in the case of a major precepting authority, the sum of the total rateable value of all small business hereditaments shown on 1st April 2023 in the lists of all billing authorities in relation to that authority; E is— in the case of a billing authority, the sum of the total rateable value of standard hereditaments shown in the authority’s list on 1st April 2023; in the case of a major precepting authority, the sum of the total rateable value of all standard hereditaments shown on 1st April 2023 in the lists of all billing authorities in relation to that authority on 1st April 2023. ; (c) in paragraph 4(a)— (i) in paragraph (ii), omit “and”; (ii) after paragraph (ii), insert— (iii) for the year commencing on 1st April 2023, is to be the sum of the individual business rates baselines of the authorities that comprise the pool for the year commencing on 1st April 2023; and . (5) In regulation 6 (individual levy rates and safety net thresholds)— (a) in paragraph (2B), in the definitions of E and F, for “1st April 2017” substitute “the day on which the current lists were compiled”; (b) in paragraph (2F)— (i) omit “or after”; (ii) after “2019” insert “, 1st April 2020, 1st April 2021 or 1st April 2022”; (c) in paragraph (2I), for the words from “or after” to “that table” substitute “1st April 2021 or 1st April 2022”; (d) after paragraph (3), insert— (4) In this regulation, “current lists” means the local non-domestic rating lists compiled in accordance with section 41(1) of the 1988 Act and in force for the relevant year. . (6) In Schedule 1 (calculation of retained rates income)— (a) in paragraph 1(1) (calculation for billing authorities)— (i) for the formula which appears immediately after the opening words substitute— K L ± N - M - O ± S ± T ± U ± V ± W ± Y ± Z ± Z 1 ± P - Q (ii) in the definition of P— (aa) in paragraph (a), for “or (h)” substitute “, (h) or (i)”; (bb) for paragraph (h) substitute— (h) for the relevant year beginning on 1st April 2023, the amount specified for the authority in column B of the table in Schedule 7; (i) for the relevant year beginning on 1st April 2024, the amount calculated for that authority in accordance with the formula— A × D × B 2 ± E × C 2 D × B 1 ± E × C 1 where— A is P for the preceding 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; C2 is the non-domestic rating multiplier for the relevant year; C1 is the non-domestic rating multiplier for the preceding year; D is the sum of the total rateable value of all small business hereditaments shown in the authority’s list on 1st April 2023; E is the sum of the total rateable value of standard hereditaments shown in the authority’s list on 1st April 2023; ; (iii) in the definition of Q— (aa) in paragraph (a), for “or (h)” substitute “, (h) or (i)”; (bb) for paragraph (h) substitute— (h) for the relevant year beginning on 1st April 2023, the amount specified for the authority in column C of the table in Schedule 7; (i) for the relevant year beginning on 1st April 2024, the amount calculated for that authority in accordance with the formula— A × D × B 2 ± E × C 2 D × B 1 ± E × C 1 where— A is Q for the preceding 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; C2 is the non-domestic rating multiplier for the relevant year; C1 is the non-domestic rating multiplier for the preceding year; D is the sum of the total rateable value of all small business hereditaments shown in the authority’s list on 1st April 2023; E is the sum of the total rateable value of standard hereditaments shown in the authority’s list on 1st April 2023; ; (iv) in the definition of U, omit “and”; (v) after the definition of U, insert— V is— for the years commencing on or after 1st April 2024, the amount calculated in accordance with sub-paragraph (4E); for any other year, zero; W is— for the years commencing on or after 1st April 2024, the amount calculated in accordance with sub-paragraph (4F); for any other year, zero; ; (vi) in the definition of Y, in paragraph (d), for “that table.” substitute “that table;”; (vii) after the definition of Y, insert— Z is— for the years commencing on or after 1st April 2024, the amount calculated in accordance with sub-paragraph (4G); for any other year, zero; Z1 is— for the year beginning on 1st April 2022, the amount specified for the authority in column B of Schedule 6A; for a year beginning on or after 1st April 2023, the amount specified for the authority in column E of Schedule 7; for any other year, zero. ; (b) after paragraph 1(4D), insert— (4E) 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 for paragraph 10(2) of Schedule 4ZA to the 1988 Act there were substituted— (2) “A” is the rateable value shown for the day under section 42(4) as regards the hereditament. . (4F) The amount calculated in accordance with this sub-paragraph is 50% of 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 paragraph 8 of Schedule 4ZA to the 1988 Act (rural rate relief) were omitted. (4G) 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 paragraph 6 of Schedule 4ZA to the 1988 Act (heat networks rate relief) were omitted. ; (c) in paragraph 2 (calculation for major precepting authorities)— (i) for the formula which appears immediately after the opening words substitute— S R ± U ± V ± Z ± W ± Y ± Z 1 ± P - Q (ii) in the definition of S, in paragraph (iiia), for “or after 1st April 2017” substitute “1st April 2017, 1st April 2018, 1st April 2019, 1st April 2020 or 1st April 2021”; (iii) in the definition of P— (aa) in paragraph (a), for “or (d)” substitute “, (d), (e) or (f)”; (bb) after paragraph (d), insert— (e) for the relevant year beginning on 1st April 2023, the amount specified for the authority in column B of the table in Schedule 7; (f) for the relevant year beginning on 1st April 2024, the amount calculated for that authority in accordance with the formula— A × D × B 2 ± E × C 2 D × B 1 ± E × C 1 where— A is P for the preceding 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; C2 is the non-domestic rating multiplier for the relevant year; C1 is the non-domestic rating multiplier for the preceding year; D is the sum of the total rateable value of all small business hereditaments shown in the lists of all billing authorities in relation to the authority on 1st April 2023; E is the sum of the total rateable value of standard hereditaments shown in the lists of all billing authorities in relation to the authority on 1st April 2023; ; (iv) in the definition of Q— (aa) in paragraph (a), for “or (d)” substitute “, (d), (e) or (f)”; (bb) after paragraph (d), insert— (e) for the relevant year beginning on 1st April 2023, the amount specified for the authority in column C of the table in Schedule 7; (f) for the relevant year beginning on 1st April 2024, the amount calculated for that authority in accordance with the formula— A × D × B 2 ± E × C 2 D × B 1 ± E × C 1 where— A is Q for the preceding 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; C2 is the non-domestic rating multiplier for the relevant year; C1 is the non-domestic rating multiplier for the preceding year; D is the sum of the total rateable value of all small business hereditaments shown in the lists of all billing authorities in relation to the authority on 1st April 2023; E is the sum of the total rateable value of standard hereditaments shown in the lists of all billing authorities in relation to the authority on 1st April 2023; ; (v) in the definition of W, after paragraph (d), insert— (e) for the relevant year beginning on 1st April 2024, 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 Supporting Small Business Relief, local authority guidance” published on 21 December 2022, or (ii) “Business Rates Relief: 2024/25 Retail, Hospitality and Leisure Scheme” published on 15 December 2023; ; (vi) in the definition of Y, after “S” insert “, V, W and Z”; (vii) in the definition of Z, for “1988 Act.” substitute “1988 Act;”; (viii) after the definition of Z, insert— Z1 is— for the year beginning on 1st April 2022, the amount specified for the authority in column B of Schedule 6A; for a year beginning on or after 1st April 2023, the amount specified for the authority in column E of Schedule 7. . (7) After Schedule 6 (table of authorities, business rates baselines, baseline funding levels and values of A and Y), insert Schedule 6A which is set out in Schedule 1 to these Regulations. (8) For Schedule 7 (table of authorities, values for P and Q) substitute the Schedule set out in Schedule 2 to these Regulations.