The Non-Domestic Rating (Rates Retention and Levy and Safety Net) (Amendment) and (Levy Account: Basis of Distribution) Regulations 2019

Made

Coming into force in accordance with regulation 1

The Secretary of State for Housing, Communities and Local Government makes the following Regulations in exercise of the powers conferred by sections 97(2A), 99(3) and 143(1) and (2) of, and paragraphs 6 to 11, 22, 25, 30(2) and 37 of Schedule 7B to the Local Government Finance Act 1988 (“the 1988 Act”).

In accordance with section 143(9D) of the 1988 Act, a draft of this instrument was laid before Parliament and approved by resolution of each House of Parliament.

These Regulations are made with the consent of the Treasury in accordance with paragraph 8(3) of Schedule 7B to the 1988 Act.

PART 1 — Preliminary

Citation and commencement

1

• (1) These Regulations may be cited as the Non-Domestic Rating (Rates Retention and Levy and Safety Net) (Amendment) and (Levy Account: Basis of Distribution) Regulations 2019.

• (2) Subject to paragraph (3), these Regulations come into force on the day after the day on which they are made.

• (3) Regulation 20 of these Regulations comes into force on 1st April 2019.

PART 2 — Rates retention

Amendment of the Non-Domestic Rating (Rates Retention) Regulations 2013

2

The Non-Domestic Rating (Rates Retention) Regulations 2013 are amended in accordance with regulations 3 to 10.

Amendment of regulation 3

3

In regulation 3 (calculation and notification of non-domestic rating income and other amounts)—

• (a) in paragraph (1)(da), for “Parts 1 to 22” substitute “ Parts 2 to 6 ”;

• (b) in paragraph (1)(db), for “Parts 1 to 22” substitute “ Parts 2 to 6 ”.

Amendment of regulation 5

4

In regulation 5 (payments by billing authorities to major precepting authorities in respect of share of income)—

• (a) in paragraph (3), for “or (3C)” substitute “ , (3C) or (3D) ”;

• (b) in paragraph (3B), for “2019” substitute “ 2020 ”;

• (c) after paragraph (3C), insert—

(3D) For the relevant year commencing on 1st April 2019, the relevant precepting authority shares are— (a) 27% where the relevant precepting authority is the Greater London Authority; (b) 31.5% where the relevant precepting authority is Buckinghamshire County Council; (c) 26% where the relevant precepting authority is East Sussex County Council; (d) 40% where the relevant precepting authority is Hertfordshire County Council; (e) 17.5% where the relevant precepting authority is Lancashire County Council; (f) 36.5% where the relevant precepting authority is Leicestershire County Council; (g) 32.5% where the relevant precepting authority is Norfolk County Council; (h) 21.5% where the relevant precepting authority is North Yorkshire County Council; (i) 34% where the relevant precepting authority is Northamptonshire County Council; (j) 30% where the relevant precepting authority is Somerset County Council; (k) 34% where the relevant precepting authority is Staffordshire County Council; (l) 55% where the relevant precepting authority is West Sussex County Council; (m) 74% where the relevant precepting authority is Worcestershire County Council; (n) 5% where the relevant precepting authority is East Sussex Combined Fire and Rescue Authority; and (o) 1.5% where the relevant precepting authority is Lancashire Combined Fire and Rescue Authority.

Amendment of regulation 6

5

In regulation 6 (payments to major precepting authorities in respect of deductions from central share payments)—

• (a) at the beginning of paragraph (3), insert “ Unless paragraph (3A) applies, ”;

• (b) after paragraph (3), insert—

(3A) For the relevant year commencing on 1st April 2019, the relevant precepting authority shares are— (a) 36% where the relevant precepting authority is the Greater London Authority; (b) 42% where the relevant precepting authority is Buckinghamshire County Council; (c) 34⅔% where the relevant precepting authority is East Sussex County Council; (d) 53⅓% where the relevant precepting authority is Hertfordshire County Council; (e) 23⅓% where the relevant precepting authority is Lancashire County Council and the billing authority is listed in Part 27 of Schedule 5; (f) 48⅔% where the relevant precepting authority is Leicestershire County Council; (g) 43⅓% where the relevant precepting authority is Norfolk County Council; (h) 28⅔% where the relevant precepting authority is North Yorkshire County Council; (i) 45⅓% where the relevant precepting authority is Northamptonshire County Council; (j) 40% where the relevant precepting authority is Somerset County Council; (k) 45⅓% where the relevant precepting authority is Staffordshire County Council; (l) 73⅓% where the relevant precepting authority is West Sussex County Council; (m) 98⅔% where the relevant precepting authority is Worcestershire County Council; (n) 1⅓% where the relevant precepting authority is Berkshire Combined Fire and Rescue Authority; (o) 1⅓% where the relevant precepting authority is Buckinghamshire Combined Fire and Rescue Authority and the billing authority is listed in Part 23 of Schedule 5; (p) 1⅓% where the relevant precepting authority is Devon and Somerset Fire and Rescue Authority and the billing authority is listed in Part 35 of Schedule 5; (q) 6⅔% where the relevant precepting authority is East Sussex Combined Fire and Rescue Authority and the billing authority is listed in Part 24 of Schedule 5; (r) 1⅓% where the relevant precepting authority is Hampshire Combined Fire and Rescue Authority and the billing authority is listed in Part 19 of Schedule 5; (s) 1⅓% where the relevant precepting authority is Hereford & Worcester Combined Fire and Rescue Authority and the billing authority is listed in Part 39 of Schedule 5; (t) 1⅓% where the relevant precepting authority is Leicestershire Combined Fire and Rescue Authority and the billing authority is listed in Part 28 or 29 of Schedule 5; (u) 1⅓% where the relevant precepting authority is North Yorkshire Police, Fire and Crime Commissioner Fire and Rescue Authority; (v) 1⅓% where the relevant precepting authority is Northamptonshire Commissioner Fire and Rescue Authority; (w) 1⅓% where the relevant precepting authority is Staffordshire Commissioner Fire and Rescue Authority; (x) 1⅓% where the relevant precepting authority is Tyne and Wear Fire and Rescue Authority and the billing authority is listed in Part 33 of Schedule 5; and (y) 1⅓% where the relevant precepting authority is West Yorkshire Fire and Rescue Authority.

Amendment of regulation 11

6

In regulation 11 (reconciliation of amount deducted from central share payment)—

• (a) in paragraph (3), for “paragraph (4)” substitute “ paragraph (4), (5) or (6) ”;

• (b) in paragraph (4), for “a relevant year commencing on or after” substitute “ the relevant year commencing on ”;

• (c) after paragraph (4), insert—

(5) For the relevant year commencing on 1st April 2018, the percentage shares are— (a) 64% where the billing authority is listed in Part 1 of Schedule 5; and (b) 36% where the relevant precepting authority is the Greater London Authority. (6) For the relevant year commencing on 1st April 2019, the percentage shares are— (a) 64% where the billing authority is listed in Part 1 of Schedule 5; (b) 98⅔% where the billing authority is listed in Parts 7, 16, 19, 28, 33 or 36 of Schedule 5; (c) 70% where the billing authority is listed in Parts 15 or 32 of Schedule 5; (d) 100% where the billing authority is listed in Parts 20 or 34 of Schedule 5; (e) 56⅔% where the billing authority is listed in Parts 23 or 30 of Schedule 5; (f) 58⅔% where the billing authority is listed in Parts 24 or 35 of Schedule 5; (g) 46⅔% where the billing authority is listed in Part 25 of Schedule 5; (h) 98% where the billing authority is listed in Part 26 of Schedule 5; (i) 74⅔% where the billing authority is listed in Part 27 of Schedule 5; (j) 50% where the billing authority is listed in Part 29 of Schedule 5; (k) 53⅓% where the billing authority is listed in Parts 31 or 37 of Schedule 5; (l) 26⅔% where the billing authority is listed in Part 38 of Schedule 5; (m) 0% where the billing authority is listed in Part 39 of Schedule 5; (n) 36% where the relevant precepting authority is the Greater London Authority; (o) 42% where the relevant precepting authority is Buckinghamshire County Council; (p) 34⅔% where the relevant precepting authority is East Sussex County Council; (q) 53⅓% where the relevant precepting authority is Hertfordshire County Council; (r) 23⅓% where the relevant precepting authority is Lancashire County Council and the billing authority is listed in Part 27 of Schedule 5; (s) 48⅔% where the relevant precepting authority is Leicestershire County Council; (t) 43⅓% where the relevant precepting authority is Norfolk County Council; (u) 28⅔% where the relevant precepting authority is North Yorkshire County Council; (v) 45⅓% where the relevant precepting authority is Northamptonshire County Council; (w) 40% where the relevant precepting authority is Somerset County Council; (x) 45⅓% where the relevant precepting authority is Staffordshire County Council; (y) 73⅓% where the relevant precepting authority is West Sussex County Council; (z) 98⅔% where the relevant precepting authority is Worcestershire County Council; (z1) 1⅓% where the relevant precepting authority is Berkshire Combined Fire and Rescue Authority; (z2) 1⅓% where the relevant precepting authority is Buckinghamshire Combined Fire and Rescue Authority and the billing authority is listed in Part 23 of Schedule 5; (z3) 1⅓% where the relevant precepting authority is Devon and Somerset Fire and Rescue Authority and the billing authority is listed in Part 35 of Schedule 5; (z4) 6⅔% where the relevant precepting authority is East Sussex Combined Fire and Rescue Authority and the billing authority is listed in Part 24 of Schedule 5; (z5) 1⅓% where the relevant precepting authority is Hampshire Combined Fire and Rescue Authority and the billing authority is listed in Part 19 of Schedule 5; (z6) 1⅓% where the relevant precepting authority is Hereford & Worcester Combined Fire and Rescue Authority and the billing authority is listed in Part 39 of Schedule 5; (z7) 1⅓% where the relevant precepting authority is Leicestershire Combined Fire and Rescue Authority and the billing authority is listed in Part 28 or Part 29 of Schedule 5; (z8) 1⅓% where the relevant precepting authority is North Yorkshire Police, Fire and Crime Commissioner Fire and Rescue Authority; (z9) 1⅓% where the relevant precepting authority is Northamptonshire Commissioner Fire and Rescue Authority; (z10) 1⅓% where the relevant precepting authority is Staffordshire Commissioner Fire and Rescue Authority; (z11) 1⅓% where the relevant precepting authority is Tyne and Wear Fire and Rescue Authority and the billing authority is listed in Part 33 of Schedule 5; and (z12) 1⅓% where the relevant precepting authority is West Yorkshire Fire and Rescue Authority.

Amendment of Schedule 2

7

In Schedule 2 (qualifying relief for deduction from central share), in paragraph 3—

• (a) at the beginning of sub-paragraph (1), insert “ Unless sub-paragraph (1A) applies, ”;

• (b) after sub-paragraph (1), insert—

(1A) For the relevant year beginning on 1st April 2019, for a billing authority listed in Parts 1, 7, 15, 16, 19, 20 or 23 to 39 of Schedule 5, the amount specified by this paragraph is the amount that is 75% of the difference between— (a) the amount calculated for that year in accordance with sub-paragraph (2); and (b) the amount that would have been calculated in accordance with sub-paragraph (2) had a determination under section 47(1)(a) of the 1988 Act as regards a case B hereditament not been made, but disregarding any amount by which the amount of a determination would exceed the limit on the total de minimis aid that may be granted in accordance with Commission Regulation (EC) No 1407/2013 in respect of any particular undertaking.

Amendment of Schedule 3

8

In the definition of Q in Schedule 3 (transfer from collection fund to general fund)—

• (a) in each of paragraphs (a) to (d), for “paragraph (e) or (f)” substitute “ paragraph (e), (f) or (g) ”;

• (b) after paragraph (f), insert—

(g) for the relevant year beginning on 1st April 2019— (i) for a billing authority listed in Part 1 of Schedule 5, 48%; (ii) for a billing authority listed in Parts 7, 16, 19, 28, 33 or 36 of Schedule 5, 74%; (iii) for a billing authority listed in Parts 15 or 32 of Schedule 5, 52.5%; (iv) for a billing authority listed in Parts 20 or 34 of Schedule 5, 75%; (v) for a billing authority listed in Parts 23 or 30 of Schedule 5, 42.5%; (vi) for a billing authority listed in Parts 24 or 35 of Schedule 5, 44%; (vii) for a billing authority listed in Part 25 of Schedule 5, 35%; (viii) for a billing authority listed in Part 26 of Schedule 5, 73.5%; (ix) for a billing authority listed in Part 27 of Schedule 5, 56%; (x) for a billing authority listed in Part 29 of Schedule 5, 37.5%; (xi) for a billing authority listed in Parts 31 or 37 of Schedule 5, 40%; (xii) for a billing authority listed in Part 38 of Schedule 5, 20%; and (xiii) for a billing authority listed in Part 39 of Schedule 5, 0%;

.

Amendment of Schedule 4

9

• (1) In Schedule 4 (rules for estimation and apportionment of surplus and deficit), paragraph 2 is amended as follows.

• (2) In sub-paragraph (1), for “(1G) or (1H)” substitute “ (1FA), (1G), (1GA), (1H), (1I) or (1J) ”.

• (3) In sub-paragraph (1F), for the formula substitute—

$( A − ( B + C − D ) ) × 25 %$

• (4) After sub-paragraph (1F) insert—

(1FA) For the relevant year beginning on 1st April 2020, the Secretary of State's share of any surplus or of any deficit estimated for that year under paragraph 1 by a billing authority listed in Parts 7, 15, 16, 19 and 20 of Schedule 5 is calculated in accordance with the formula— $( A − ( B + C − D − E ) ) × 25 %$

• (5) In sub-paragraph (1G), for “Parts 7 to 22” substitute “ Parts 8 to 14, 17, 18, 21 and 22 ”.

• (6) After sub-paragraph (1G), insert—

(1GA) For the relevant year beginning on 1st April 2020, the Secretary of State's share of any surplus or of any deficit estimated for that year under paragraph 1 by a billing authority listed in Parts 23 to 39 of Schedule 5 is calculated in accordance with the formula— $( ( A − ( B + C − D − E ) ) × 25 % ) + ( ( B + C − D − E ) × 50 % )$

• (7) For sub-paragraph (1H) substitute—

(1H) For the relevant year beginning on 1st April 2021, the Secretary of State's share of any surplus or of any deficit estimated for that year under paragraph 1 by a billing authority listed in Part 1 of Schedule 5 is calculated in accordance with the formula— $( ( A − ( B + C − D − E ) ) × 33 % ) + ( ( B + C − D − E ) × 25 % )$ (1I) For the relevant year beginning on 1st April 2021, the Secretary of State's share of any surplus or of any deficit estimated for that year under paragraph 1 by a billing authority listed in Parts 7, 15, 16, 19, 20, or 23 to 39 of Schedule 5 is calculated in accordance with the formula— $( ( A − ( B + C − D − E ) ) × 50 % ) + ( ( B + C − D − E ) × 25 % )$ (1J) For a relevant year beginning on or after 1st April 2022, the Secretary of State's share of any surplus or of any deficit estimated for that year under paragraph 1 by a billing authority listed in Part 1 of Schedule 5 is 33%.

• (8) In sub-paragraph (2), for “or (2C)” substitute “ , (2C) or (2E) ”.

• (9) In sub-paragraph (2A)(d), for the formula substitute—

$( ( A − ( B + C − D − E ) ) × 27 % ) + ( ( B + C − D − E ) × 36 % )$

• (10) After sub-paragraph (2A)(d), insert—

(e) for the relevant year beginning on 1st April 2021, is calculated in accordance with the formula— $( ( A − ( B + C − D − E ) ) × 37 % ) + ( ( B + C − D − E ) × 27 % )$

• (11) After sub-paragraph (2D), insert—

(2E) For a relevant authority listed in the table below, the share of any surplus or of any deficit for the relevant years beginning on 1st April 2020 and 1st April 2021 is calculated in accordance with the formula— $( ( A − ( B + C − D − E ) ) × α % ) + ( ( B + C − D − E ) × β % )$ where the values of α and β are set out in that table—

• (12) After sub-paragraph (7A), insert—