Local Government Finance Bill (HC Bill 142)

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6 Power to reduce non-domestic rating multipliers

Schedule 2 contains provision enabling billing authorities and major
precepting authorities in England to reduce non-domestic rating multipliers in
their areas.

5Reliefs

7 Relief for rural shops, etc

(1) In section 43 of the Local Government Finance Act 1988 (occupied
hereditaments: liability), in subsection (6A), after “day” insert

(a) in relation to England, is zero;

(b) 10in relation to Wales,”.

(2) In section 67 of that Act (interpretation: other provisions), in subsection (7), for
“and (6)” (as inserted by paragraph 7 of Schedule 3) substitute “, (6) and (6B)”.

(3) In section 13 of the Business Rate Supplements Act 2009 (chargeable amount),
in subsection (5), for the words from “the amount” to the end substitute “the
15amount is zero.”

8 Relief for telecommunications infrastructure

Schedule 3 contains provision for relief from non-domestic rates in respect of
hereditaments used for the purposes of telecommunications.

9 Discretionary relief for public toilets

20In section 47 of the Local Government Finance Act 1988 (discretionary relief),
after subsection (9) insert—

(9A) But in relation to England a hereditament is not an excepted
hereditament if it consists wholly or mainly of public lavatories.”

10 Central non-domestic rating: other reliefs

(1) 25In Part 3 of the Local Government Finance Act 1988 (non-domestic rating), after
section 54ZA (inserted by Schedule 3 below) insert—

54ZB Charitable relief

(1) This section applies where—

(a) for any day in a chargeable financial year a person’s name is
30shown in a central non-domestic rating list compiled for
England and in force for the year, and

(b) on that day (“the chargeable day”)—

(i) the person is a charity or trustees for a charity, and

(ii) the charitable purpose test is met in relation to any
35description of hereditament shown against the person’s
name in the list.

(2) For the purposes of subsection (1)(b) the charitable purpose test is met
in relation to a description of hereditament if—

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(a) in a case where there is only one hereditament falling within the
description, the hereditament is wholly or mainly used for
charitable purposes (whether of the charity mentioned in
subsection (1)(b)(i) or of that charity and other charities), or

(b) 5in a case where there is more than one hereditament falling
within the description, those hereditaments are, taken together,
wholly or mainly so used.

(3) The chargeable amount for the chargeable day in respect of that
description of hereditament shall be calculated in accordance with the
10formula—


where A, B and C have the same meaning as they have for the purposes
of section 54(4).

54ZC Unoccupied hereditaments

(1) 15This section applies where, for any day in a chargeable financial year
(“the chargeable day”)—

(a) a person’s name is shown in a central non-domestic rating list
compiled for England and in force for the year,

(b) the central valuation officer has certified that one or more
20hereditaments falling within a description of hereditament
shown against the person’s name in the list is unoccupied, and

(c) any of the hereditaments so certified falls within a class
prescribed by the Secretary of State by regulations.

(2) If for the chargeable day every hereditament falling within that
25description of hereditament—

(a) has been certified by the central valuation officer as unoccupied,
and

(b) falls within a class prescribed by regulations under subsection
(1)(c),

30the chargeable amount for the chargeable day in respect of that
description of hereditament is zero.

(3) If subsection (2) does not apply, the chargeable amount for the
chargeable day in respect of that description of hereditament shall be
calculated in accordance with the formula—


35

where—

  • A, B and C have the same meaning as they have for the purposes
    of section 54(4), and

  • U is the total rateable value of the hereditaments falling within
    40that description which, for the chargeable day—

    (a)

    have been certified by the central valuation officer as
    unoccupied, and

    (b)

    fall within a class prescribed by regulations under
    subsection (1)(c).

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(4) For the purposes of this section a class may be prescribed by reference
to such factors as the Secretary of State sees fit, including, in
particular—

(a) the physical characteristics of the hereditaments;

(b) 5the fact that hereditaments have been unoccupied at any time
preceding the chargeable day;

(c) the fact that the persons in relation to whom descriptions of
hereditaments are shown fall within prescribed descriptions.

(5) The Secretary of State may by regulations make provision—

(a) 10imposing duties or conferring powers on the central valuation
officer in relation to the certification of hereditaments as
unoccupied;

(b) as to appeals relating to things done or not done by that officer.

54ZD Cases where more than one relief applies

(1) 15This section applies if—

(a) for any day in a chargeable financial year any description of
hereditament is shown against a person’s name in a central non-
domestic rating list compiled for England and in force for the
year, and

(b) 20each of the sections mentioned in the first column of the table in
subsection (2) has effect in relation to that description of
hereditament for that day.

(2) The chargeable amount for that day in respect of that description of
hereditament shall be calculated in accordance with the corresponding
25section in the second column of the table below—

Sections having effect in
relation to description of
hereditament
Section to be used for
calculating chargeable
amount
Sections 54ZA and 54ZB Section 54ZB
Sections 54ZA and 54ZC 30Section 54ZC
Sections 54ZA, 54ZB
and 54ZC
Section 54ZB
Sections 54ZB and 54ZC Section 54ZB”.

(2) In section 54 of that Act (central rating: liability), in subsection (4), for “section
3554ZA” substitute “sections 54ZA to 54ZC”.

(3) In section 57A of that Act (transitional provision for 2005 onwards: England)—

(a) in subsection (2)(a), for “or 54ZA” substitute “, 54ZA, 54ZB or 54ZC”;

(b) in subsection (3)(b), after “54ZA” insert “, 54ZB or 54ZC”.

(4) In section 63A of that Act (disclosure of Revenue and Customs information), in
40subsection (4)(aa) (as inserted by paragraph 12 of Schedule 3), for “or 54ZA”
substitute “, 54ZA, 54ZB or 54ZC”.

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(5) In section 67 of that Act (interpretation: other provisions), in subsection (7), for
“and 54ZA” substitute “, 54ZA, 54ZB and 54ZC”.

Administration

11 Central non-domestic rating lists

(1) 5In Part 3 of the Local Government Finance Act 1988 (non-domestic rating), after
section 52 (central rating lists) insert—

52A Contents of central lists for England

(1) The Secretary of State may direct the central valuation officer to show
in an English central rating list, for each day in each chargeable
10financial year for which the list is in force—

(a) the name of any specified person, and

(b) in relation to that person, one or more specified descriptions of
relevant non-domestic hereditament in England (wherever
situated) which on that day are occupied or (if unoccupied)
15owned by the person.

(2) The Secretary of State may also direct the central valuation officer to do
any of the following in relation to an English central rating list—

(a) for each day in each chargeable financial year for which the list
is in force, to show, in relation to any person shown in the list,
20one or more additional specified descriptions of relevant non-
domestic hereditament in England (wherever situated) which
on that day are occupied or (if unoccupied) owned by the
person;

(b) to alter or remove the name of any person shown in the list;

(c) 25to alter or remove any description of relevant non-domestic
hereditament shown in relation to a person in the list.

(3) In this section—

  • “English central rating list” means a central non-domestic rating
    list compiled, or proposed to be compiled, for England;

  • 30“specified” means specified in the direction.

(4) Where two or more hereditaments fall (or would, as a result of a
direction made under this section, fall) within any description of
hereditament shown in relation to a person in an English central rating
list, the Secretary of State may direct that all of the hereditaments that
35fall (or would fall) within that description are to be treated for the
purposes of this Part as a single hereditament falling within that
description that is occupied or (if unoccupied) owned by the person.

(5) For each day in each chargeable financial year for which an English
central rating list is in force, and in relation to each description of
40hereditament shown in relation to a person in the list, the list must
show against the name of the person—

(a) where there is only one hereditament falling within that
description, the rateable value of that hereditament;

(b) where there is more than one hereditament falling within that
45description, the rateable value (as a whole) of those
hereditaments.

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(6) A direction under this section may require the central valuation officer
to include specified information about any person, or any description
of hereditament, shown in the list.

(7) The central valuation officer must comply with any direction given
5under this section.

(8) But where a direction under this section requires the central valuation
officer to alter a list which has been compiled, the officer must do so in
accordance with any provision made by or under section 55 (alteration
of lists).

(9) 10Subject to subsection (8), a direction under this section has effect from
the day specified in the direction (which may be a day earlier than that
on which the direction is given).

But a direction may not specify a day earlier than the day on which this
section comes into force.”

(2) 15In section 53 of that Act (contents of central lists)—

(a) in subsection (1)—

(i) for “Secretary of State” substitute “Welsh Ministers”, and

(ii) after “hereditament” insert “in Wales”;

(b) in subsection (2), after “list” insert “compiled for Wales”;

(c) 20in subsection (5)—

(i) after “list” insert “compiled for Wales”, and

(ii) for “Secretary of State” substitute “Welsh Ministers”;

(d) the heading becomes “Contents of central lists for Wales”.

(3) In section 54 of that Act (central rating: liability), after subsection (7) insert—

(7A) 25Where, in a central non-domestic rating list compiled for England,
more than one description of relevant non-domestic hereditament is
shown against the ratepayer’s name for a chargeable day—

(a) the reference in subsection (2)(a) to finding the chargeable
amount for each chargeable day is to be read as a reference to
30finding the chargeable amount for each chargeable day in
respect of each description of hereditament shown against the
ratepayer’s name for that day,

(b) the reference in subsection (4) to the chargeable amount for a
chargeable day is to be read as a reference to the chargeable
35amount for a chargeable day in respect of a description of
hereditament shown against the ratepayer’s name for that day,
and

(c) in that subsection, A is the rateable value shown for the day in
the list against the ratepayer’s name in relation to that
40description of hereditament.”

(4) In section 63A of that Act (disclosure of Revenue and Customs information), in
subsection (4)(aa) (as inserted by paragraph 12 of Schedule 3), for “53”
substitute “52A”.

(5) In section 65A of that Act (Crown property), in subsection (7), after “affect”
45insert “the power conferred by section 52A(4) above or”.

(6) In section 67 of that Act (interpretation: other provisions)—

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(a) after subsection (8) insert—

(8A) In relation to England—

(a) any reference to a hereditament required to be shown
for a day in a central non-domestic rating list shall
5include a reference to a hereditament which on that day
falls within a description required to be shown for the
day in the list, and

(b) a hereditament shall be treated as shown in a central
non-domestic rating list for a day if on that day—

(i) 10it falls within a description of hereditament
shown for the day in the list in relation to a
person, and

(ii) it is occupied or owned by that person.

(8B) In relation to England, a hereditament falls within a description
15or class on a particular day if (and only if) it falls within the
description or class immediately before the day ends.”;

(b) in subsection (9), at the beginning insert “In relation to Wales,”;

(c) in subsection (12), after “non-domestic rate,” insert “or prevent a person
or description of hereditament being shown in a list by virtue of a
20direction under section 52A above,”.

12 Power to require billing authorities to offer electronic billing, etc

In Schedule 9 to the Local Government Finance Act 1988 (non-domestic rating:
administration), in paragraph 2, after sub-paragraph (2) insert—

(2ZA) Regulations under this Schedule may, in relation to England, include
25provision—

(a) that the payee must, on the request of the ratepayer—

(i) serve notices on, or issue documents to, the ratepayer
electronically;

(ii) supply information to the ratepayer electronically;

(b) 30that the payee must, on the request of a person who is the
ratepayer in relation to more than one hereditament in the
payee’s area, serve such notices, or issue such documents, in
respect of those hereditaments as may be prescribed—

(i) by sending them to the ratepayer by a single
35electronic communication, or

(ii) by enabling the ratepayer to access them by means of
a single account on a website;

(c) that the payee must, on the request of a person who is the
ratepayer in relation to more than one hereditament in the
40payee’s area, supply such information in respect of those
hereditaments as may be prescribed—

(i) by sending it to the ratepayer by a single electronic
communication,

(ii) by sending it to the ratepayer by the same electronic
45communication by which notices or documents in
respect of those hereditaments are served or issued,
or

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(iii) by enabling the ratepayer to access it by means of a
single account on a website.

In this sub-paragraph “electronic communication” has the same
meaning as in the Electronic Communications Act 2000.”

13 5Power to issue guidance about notices relating to non-domestic rates

In Schedule 9 to the Local Government Finance Act 1988 (non-domestic rating:
administration), after paragraph 2 insert—

2A (1) A billing authority in England must have regard to any guidance
issued by the Secretary of State about—

(a) 10the form in which rate demand notices must be served;

(b) the contents of rate demand notices.

(2) In this paragraph—

  • “rate demand notice” means a notice served by a billing
    authority on a ratepayer stating—

    (a)

    15the amount which the ratepayer is liable to pay to the
    authority, or its estimated amount, and

    (b)

    what payment or payments the ratepayer is required
    to make (by way of instalment or otherwise);

  • “ratepayer” has the same meaning as in paragraph 2 above.

(3) 20Sub-paragraph (1) is subject to any provision made by virtue of
paragraph 2(2)(g), (ga) or (gb) above.”

14 Provision of digital etc services by HMRC: preparatory expenditure

(1) The Commissioners for Her Majesty’s Revenue and Customs may incur
expenditure in connection with digital services to be provided by the
25Commissioners for the purpose of facilitating the administration or payment
of non-domestic rates in England.

(2) “Digital services” means—

(a) digital or information technology services, and

(b) services relating to the administration of services within paragraph (a).

(3) 30“Non-domestic rates” means non-domestic rates payable under Part 3 of the
Local Government Finance Act 1988.

Part 3 Infrastructure supplements

Power to impose infrastructure supplements

15 35Power to impose infrastructure supplements

(1) A relevant authority has power to impose a levy, to be called an “infrastructure
supplement”, on non-domestic ratepayers in its area.

For the meaning of “relevant authority”, see section 16.

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(2) The purpose of imposing an infrastructure supplement is to raise money for
expenditure on a project that the authority is satisfied will promote economic
development in its area.

(3) A person is a “non-domestic ratepayer” in the area of a relevant authority if the
5person is, as regards a hereditament in the authority’s area, subject to a non-
domestic rate under—

(a) section 43 of the 1988 Act (occupiers of properties), or

(b) section 45 of that Act (owners of empty properties).

(4) In this Part “the 1988 Act” means the Local Government Finance Act 1988.

16 10Relevant authorities

(1) In this Part “relevant authority” means—

(a) the Greater London Authority, or

(b) a mayoral combined authority, as defined by section 107A(8) of the
Local Democracy, Economic Development and Construction Act 2009.

(2) 15The functions of a mayoral combined authority under this Part are exercisable
only by the mayor acting on behalf of the authority.

(3) The power conferred on a relevant authority by section 15(1) may be exercised
jointly with one or more other relevant authorities.

(4) Where two or more relevant authorities are acting jointly by virtue of this
20section, a reference in this Part to a relevant authority is (except where there is
contrary provision) to be read as a reference to those authorities acting jointly.

17 Use of money raised by infrastructure supplements

(1) A relevant authority must secure that the sums it receives in respect of an
infrastructure supplement are used only for expenditure—

(a) 25on the project to which the infrastructure supplement relates, and

(b) that the authority would not have incurred had it not imposed the
infrastructure supplement.

(2) A relevant authority may use sums it receives in respect of an infrastructure
supplement to make payments in respect of money loaned for the purpose of
30providing funding for the project to which the infrastructure supplement
relates.

(3) A relevant authority must not use sums it receives in respect of an
infrastructure supplement to provide—

(a) housing;

(b) 35social services;

(c) education services;

(d) services for children;

(e) health services;

(f) services that the authority provides in the discharge of functions
40imposed by or under the Planning Acts (as defined by the Town and
Country Planning Act 1990).

(4) The Secretary of State may by regulations amend subsection (3) so as to add,
vary or omit a reference to a matter.

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(5) The Greater London Authority may make arrangements with a functional
body for some or all of the sums that the Greater London Authority receives in
respect of an infrastructure supplement imposed by it to be used by the body
for expenditure on the project to which the infrastructure supplement relates.

(6) 5Any reference in this Part to sums that a relevant authority receives in respect
of an infrastructure supplement includes a reference to financial contributions
made to it for the purpose of enabling the project to which the infrastructure
supplement relates to be carried out.

(7) The reference in subsection (6) to financial contributions made to a relevant
10authority includes financial contributions—

(a) made for the purpose specified in subsection (6) to a billing authority
which is a lower-tier authority in relation to the relevant authority, and

(b) transferred to the relevant authority.

(8) A lower-tier authority is, in relation to the Greater London Authority—

(a) 15a London borough council, or

(b) the Common Council of the City of London in its capacity as a local
authority.

(9) A lower-tier authority is, in relation to a mayoral combined authority, a county
council or district council whose area forms part of the mayoral combined
20authority’s area.

(10) Where the Greater London Authority makes arrangements under subsection
(5) with a functional body, this section applies to the body’s use of sums that it
receives in respect of the infrastructure supplement as it applies to the
Authority’s use of sums that the Authority receives in respect of the
25infrastructure supplement.

(11) Any reference in this Part to sums that a functional body receives in respect of
an infrastructure supplement is a reference to—

(a) sums that the Greater London Authority transfers to the body for the
purposes of arrangements under subsection (5) that relate to the
30infrastructure supplement, and

(b) financial contributions made to the body for the purpose specified in
subsection (6).

(12) In subsection (1)(b) as it is applied to a functional body by virtue of subsection
(10), the reference to expenditure of the relevant authority is to be read as a
35reference to expenditure of the functional body.

(13) In this Part “functional body” has the meaning given by section 424(1) of the
Greater London Authority Act 1999.

Conditions for imposing infrastructure supplements

18 Conditions for imposing infrastructure supplements

40A relevant authority may not impose an infrastructure supplement unless—

(a) it has published a document that sets out the proposal for the
imposition of the infrastructure supplement (an “initial prospectus”),

(b) it has consulted the relevant persons on the proposal (see section 20),
and

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(c) it has published a document that sets out the arrangements for the
imposition of the infrastructure supplement (a “final prospectus”).

19 Prospectus

(1) Any initial or final prospectus must include the information specified in
5Schedule 4 (and may include such other information as the relevant authority
thinks appropriate).

(2) After publishing an initial or final prospectus, a relevant authority must—

(a) place an electronic copy of the published prospectus on its website, and

(b) make copies of the published prospectus available for inspection at its
10principal office at all reasonable times of the day.

(3) In a case where two or more relevant authorities are acting jointly by virtue of
section 16, each authority must separately—

(a) discharge the function of approving a final prospectus before
publication, and

(b) 15comply with the duty imposed by subsection (2).

(4) The Secretary of State may by regulations amend Schedule 4 so as to add, vary
or omit a description of information.

20 Consultation

(1) The relevant persons for the purposes of consultation on the proposal in an
20initial prospectus are—

(a) each person who will be liable to pay the infrastructure supplement;

(b) each lower-tier authority in relation to the relevant authority;

(c) such other persons as the relevant authority thinks appropriate.

(2) A person is to be regarded for the purposes of subsection (1)(a) as a person who
25will be liable to pay an infrastructure supplement if the relevant authority
thinks that the person will be liable to pay a chargeable amount for the first day
of the chargeable period of the infrastructure supplement.

(3) A person is also to be regarded for the purposes of subsection (1)(a) as a person
who will be liable to pay an infrastructure supplement if the relevant authority
30thinks that the person—

(a) would, but for section 24, be liable to pay a chargeable amount for the
first day of the chargeable period of the infrastructure supplement, and

(b) will be liable to pay a chargeable amount before the end of that period.

(4) For the purposes of subsection (1)(c), a relevant authority must, in particular,
35think whether it would be appropriate to consult persons who the authority
thinks might become liable to pay a chargeable amount before the end of the
chargeable period of the infrastructure supplement.

(5) The relevant authority must publish—

(a) the results of the consultation, and

(b) 40a revised version of an initial prospectus if, in the light of the
consultation on the proposal in the prospectus, the authority thinks that
it is necessary or appropriate to do so.

(6) A reference in section 19 to an initial prospectus includes a reference to an
initial prospectus revised under subsection (5) of this section.