Local Government Finance Bill (HC Bill 142)

Local Government Finance BillPage 20

(7) A reference in subsection (2) or (3) to a chargeable amount does not include a
reference to a chargeable amount of zero.

(8) The Secretary of State may by regulations amend this section for the purposes
of—

(a) 5adding any person or description of person to be consulted in
accordance with this section, and

(b) varying or removing any person or description added under paragraph
(a).

Liability to infrastructure supplements

21 10Liability to infrastructure supplements

(1) This section applies in relation to a person who, as regards a hereditament, is
subject to a non-domestic rate under section 43 or 45 of the 1988 Act in respect
of a financial year.

(2) The person is, in relation to that hereditament and in respect of that year,
15subject to such infrastructure supplements as are imposed for that year by the
relevant authority in whose area the hereditament is situated.

(3) But a person subject to a non-domestic rate under section 45 of the 1988 Act (a
“section 45 ratepayer”) is not subject to an infrastructure supplement if—

(a) section 45A of that Act (empty properties: zero rating for charities and
20amateur sports clubs) applies to the hereditament, or

(b) the final prospectus for the infrastructure supplement states that
section 45 ratepayers are not to be subject to the infrastructure
supplement.

(4) A person who is subject to an infrastructure supplement in relation to a
25hereditament in respect of a financial year is liable to pay in respect of that year
an amount calculated by—

(a) finding the chargeable amount for each chargeable day, and

(b) totalling the amounts found under paragraph (a).

(5) A chargeable day is a day—

(a) 30which falls within the financial year and the chargeable period of the
infrastructure supplement, and

(b) on which the rateable value condition is met in relation to the
hereditament (see section 22).

(6) The chargeable period of an infrastructure supplement—

(a) 35is the period for which the infrastructure supplement is imposed, and

(b) must not begin before the day on which the infrastructure supplement
is imposed.

(7) The length of the chargeable period of an infrastructure supplement must not
exceed—

(a) 40the length of the period specified as the chargeable period in the final
prospectus, or

(b) if the length of the chargeable period is varied in accordance with
section 26, the length of the period as varied.

Local Government Finance BillPage 21

(8) Any reference in this Part to an infrastructure supplement imposed for a
financial year is to an infrastructure supplement the chargeable period of
which is or includes the whole or part of the financial year in question.

(9) Subsection (3)(b) does not apply if, by virtue of section 26, section 45 ratepayers
5become subject to the infrastructure supplement.

(10) See also—

(none) section 23, which contains provision regarding the determination of the
chargeable amount, and

(none) section 24, which provides the relevant authority with a power to apply
10reliefs in relation to any infrastructure supplements that are imposed
by the authority.

22 Rateable value condition

(1) The rateable value condition is (unless subsection (4) applies) met in relation to
a hereditament on any day on which the rateable value of the hereditament
15exceeds the rateable value threshold.

(2) The “rateable value threshold” is—

(a) the amount specified in the final prospectus (which must not be lower
than the prescribed amount), or

(b) if an amount has not been so specified, the prescribed amount.

(3) 20The “prescribed amount” means the amount prescribed in regulations made by
the Secretary of State for the purposes of this section.

(4) This subsection applies if—

(a) part only of a hereditament is occupied, and

(b) section 45 ratepayers are not subject to the infrastructure supplement.

(5) 25If subsection (4) applies, the rateable value condition is met in relation to the
hereditament on any day on which the rateable value of the occupied part
exceeds the rateable value threshold.

(6) For the purposes of a case where subsection (4) applies, the relevant authority
may require the valuation officer for the billing authority in whose area the
30hereditament is situated—

(a) to apportion the rateable value of the hereditament between the
occupied and unoccupied parts, and

(b) to certify the apportionment to the relevant authority.

(7) The relevant authority may, for those purposes, rely on an apportionment
35under section 44A of the 1988 Act if satisfied that the apportionment will be
accurate for those purposes.

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

(a) for the proposal of alterations to a certificate under subsection (6);

(b) for an appeal in relation to a certificate under that subsection to a
40valuation tribunal for the purposes of section 55 of the 1988 Act.

(9) Regulations under subsection (8)—

(a) may include such provision for the purposes of this Part as may be
included in regulations under subsections (3) to (7) of section 55 of the
1988 Act for the purposes of that Act;

Local Government Finance BillPage 22

(b) may amend, or apply (with or without modifications), any provision of
regulations made under any of those subsections.

(10) Accordingly, provision by virtue of subsection (8) as to the period for which or
day from which an alteration to a certificate is to have effect may have
5retrospective effect; and provision by virtue of that subsection may require the
retrospective effect to be indicated on the certificate as altered.

(11) For the purposes of this Part, the rateable value of a hereditament on a day is
the rateable value of that hereditament shown for that day in the local non-
domestic rating list maintained for the billing authority in whose area the
10hereditament is situated.

23 Chargeable amount

(1) This section applies for determining the chargeable amount for a chargeable
day in relation to a hereditament.

(2) Subject to section 24, the amount is calculated by using the formula—


15

where—

  • “A” is—

    (a)

    the rateable value of the hereditament on the chargeable day, or

    (b)

    if section 22(4) applies, the rateable value of the occupied part of
    20the hereditament on that day;

  • “B” is the multiplier for the infrastructure supplement for the financial
    year (expressed to no more than three decimal places);

  • “C” is the number of days in the financial year.

(3) If a relevant authority imposes only one infrastructure supplement for a
25financial year, the multiplier for that infrastructure supplement for that year
must not exceed 0.02.

(4) If a relevant authority imposes more than one infrastructure supplement for a
financial year, the total of the multipliers for those infrastructure supplements
for that year must not exceed 0.02.

(5) 30Subject to subsections (3) and (4), the multiplier for an infrastructure
supplement for a financial year must not exceed—

(a) the amount specified as the multiplier in the final prospectus, or

(b) if the specified amount is varied in accordance with section 26, the
amount as varied.

(6) 35If section 45 ratepayers are subject to the infrastructure supplement, subsection
(7) applies in a case where—

(a) part only of a hereditament is occupied, and

(b) an order under section 45(4A) of the 1988 Act is in force (and would
apply to the hereditament if none of it were occupied).

(7) 40Subsection (2) has effect as if for the definition of “A” there were substituted—

  • ““A” is the sum of—

    (a)

    the rateable value of the occupied part of the
    hereditament on the chargeable day, and

    Local Government Finance BillPage 23

    (b)

    the rateable value of the unoccupied part on that day,
    divided by the number prescribed as “N” under section
    45(4A) of the 1988 Act.”

24 Infrastructure supplement relief

(1) 5A relevant authority that imposes an infrastructure supplement may apply
such reliefs in relation to the infrastructure supplement as it thinks
appropriate.

(2) If a relevant authority applies a relief in relation to an infrastructure
supplement, the chargeable amount for a chargeable day in relation to a
10hereditament is determined in accordance with the rules set by the authority
for the application of the relief.

(3) A relevant authority may not apply a relief in relation to an infrastructure
supplement unless the rules for the application of the relief are set out in the
final prospectus for the infrastructure supplement or have effect by virtue of
15section 26.

25 Regulations to deal with joint ownership, joint occupation or death

(1) The Secretary of State may by regulations make provision for cases where a
hereditament is owned or occupied by more than one person at a particular
time.

(2) 20Regulations under subsection (1)—

(a) may include such provision for the purposes of this Part as may be
included in regulations under section 50 of the 1988 Act (cases of joint
ownership or occupation) for the purposes of that Act;

(b) may amend, or apply (with or without modifications), a provision of
25regulations made under that section.

(3) The Secretary of State may by regulations make provision for cases where a
person who has died was (or is alleged to have been) subject to an
infrastructure supplement.

(4) Regulations under subsection (3)—

(a) 30may include such provision for the purposes of this Part as may be
included in regulations under section 63 of the 1988 Act (cases of death)
for the purposes of that Act;

(b) may amend, or apply (with or without modifications), any provision of
regulations made under that section.

35Variation of infrastructure supplements

26 Variation of infrastructure supplements

A relevant authority may vary an infrastructure supplement in so far as the
variation is of a kind that may be made in accordance with the final prospectus.

Local Government Finance BillPage 24

Administration of infrastructure supplements

27 Notice to billing authorities before start of financial year

(1) A relevant authority must, for each financial year for which it intends to
impose an infrastructure supplement, give a written notice relating to the
5infrastructure supplement to each billing authority which is a lower-tier
authority in relation to the relevant authority.

(2) The notice must—

(a) if the infrastructure supplement is to be imposed for part only of the
year, specify the part of the year for which it is to be imposed,

(b) 10specify the multiplier for the infrastructure supplement for the year,

(c) state whether persons who, as regards hereditaments in the billing
authority’s area, are section 45 ratepayers are to be subject to the
infrastructure supplement, and

(d) specify whether a relief under section 24 is to be applied in relation to
15the infrastructure supplement (and, if so, set out the rules for its
application).

(3) The notice must be given before 31 December in the financial year preceding
that for which the relevant authority intends to impose the infrastructure
supplement.

(4) 20Where more than one infrastructure supplement is to be imposed by the
relevant authority for the year, the notice—

(a) may relate to some or all of the infrastructure supplements in question,
but

(b) if it does so, must set out the information required under subsection (2)
25separately for each infrastructure supplement to which the notice
relates.

28 Notice to billing authorities during financial year

(1) This section applies if a relevant authority—

(a) intends to impose an infrastructure supplement for a financial year, but

(b) 30has not, for that year, given a notice under section 27 in relation to the
infrastructure supplement.

(2) This section also applies if a relevant authority—

(a) varies an infrastructure supplement in accordance with section 26, and

(b) thinks that, as a result of the variation, new calculations are required to
35find the chargeable amounts that some or all of those subject to the
infrastructure supplement are liable to pay.

(3) The relevant authority must give a written notice relating to the infrastructure
supplement to each billing authority which is a lower-tier authority in relation
to the relevant authority.

(4) 40A notice given for the purposes of a case within subsection (1) must comply
with section 27(2).

(5) A notice given for the purposes of a case within subsection (2) must specify the
variation to be made by virtue of section 26.

Local Government Finance BillPage 25

29 Calculations for financial year

(1) This section applies if a billing authority which is a lower-tier authority in
relation to a relevant authority receives a notice from the relevant authority
under section 27 or 28.

(2) 5The billing authority must calculate the chargeable amount that each person
who is to be subject to the infrastructure supplement to which the notice relates
is to be liable to pay in respect of the financial year.

(3) If a billing authority receives a notice given for the purposes of a case within
subsection (2) of section 28, the duty imposed on the authority by subsection
10(2) of this section applies only in so far as new calculations are required to be
made as a result of the variation specified in the notice.

(4) A calculation under this section must be made in accordance with section 21(4).

30 Collection and enforcement

(1) The Secretary of State may by regulations make provision in relation to the
15collection and recovery of sums due in respect of an infrastructure supplement.

(2) Regulations under this section—

(a) may include such provision for the purposes of this Part as may be
included in regulations under paragraphs 1 to 4A of Schedule 9 to the
1988 Act (collection and recovery of non-domestic rates) for the
20purposes of that Act;

(b) may amend, or apply (with or without modifications), any provision of
regulations made under any of those paragraphs;

(c) may confer on a billing authority for the purposes of this Part a power
corresponding to that conferred on a billing authority by section 62A of
25the 1988 Act (taking control of goods) for the purposes of that Act.

(3) After the imposition of an infrastructure supplement has come to an end, a
billing authority may seek to collect or recover sums in respect of the
infrastructure supplement in so far as the sums became payable to it before the
imposition of the infrastructure supplement came to an end.

(4) 30Regulations under this section may provide that, if the project to which an
infrastructure supplement relates is abandoned (or, where an infrastructure
supplement relates to only certain aspects of a project, those aspects are
abandoned), the imposition of the infrastructure supplement is to be treated
for the purposes of subsection (3) as having come to an end—

(a) 35at the time of the abandonment, or

(b) at such other time as may be prescribed in the regulations.

(5) In section 11 of the State Immunity Act 1978 (no immunity from proceedings
relating to liability to value added tax, rates, etc.), the reference to liability for
rates includes a reference to liability for an infrastructure supplement.

31 40Administrative expenses

(1) Regulations under section 30 may authorise a billing authority to use a
prescribed proportion of such sums as it collects or recovers in respect of an
infrastructure supplement to meet expenses it incurs in the collection or
recovery (“administrative expenses”).

Local Government Finance BillPage 26

(2) Provision by virtue of subsection (1) may, in particular, amend section 90 of the
1988 Act (payments to and from collection funds).

(3) If the chargeable period of an infrastructure supplement begins, or a variation
of an infrastructure supplement takes effect, later than the first day of a
5financial year, the relevant authority may not, in respect of that financial year,
act in reliance on provision made by virtue of subsection (1).

(4) In so far as a billing authority incurs administrative expenses in response to a
notice given by a relevant authority under section 28, those expenses must be
met by the relevant authority.

(5) 10But the relevant authority may not meet those expenses by—

(a) using sums that it receives in respect of the infrastructure supplement,
or

(b) directing the billing authority to retain from sums it is required to
transfer to the relevant authority in respect of the infrastructure
15supplement a sum equivalent to the amount that the relevant authority
is required to pay.

(6) The amount that a relevant authority is required to pay under subsection (4)
must not exceed such amount as may be prescribed by regulations under
section 30 (or as is to be determined in accordance with such formula as may
20be prescribed by regulations under that section).

(7) Any reference in this Part to sums that a billing authority collects 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.

25Supplementary

32 Provision of information

(1) A relevant authority may require each billing authority which is a lower-tier
authority in relation to the relevant authority to provide it with—

(a) the address and rateable value of each hereditament shown in the local
30non-domestic rating list maintained for the billing authority;

(b) the name and address of each person who, as regards a hereditament
shown in the list, is subject to a non-domestic rate under section 43 or
45 of the 1988 Act;

(c) such other information for the purposes of this Part as the relevant
35authority may specify.

(2) A billing authority must comply with a requirement imposed on it under this
section.

(3) A requirement under this section—

(a) must be in writing, and

(b) 40must be accompanied by such fee (if any) as the billing authority may
charge for complying with the requirement.

(4) A relevant authority—

(a) may not use information provided to it under this section except in so
far as is necessary for the purposes of this Part, and

Local Government Finance BillPage 27

(b) may not disclose the information (except in accordance with an
enactment, in pursuance of an order of a court or with the consent of
any person to whom the information relates).

(5) In this section “enactment” includes an enactment contained in a local or
5private Act or comprised in subordinate legislation (within the meaning of the
Interpretation Act 1978).

33 Guidance

(1) In carrying out functions imposed by or by virtue of this Part, a relevant
authority must have regard to such guidance as the Secretary of State may give.

(2) 10Guidance given under this section may, in particular, relate to—

(a) the kinds of projects which may, and may not, be regarded as
appropriate ones in relation to which to impose infrastructure
supplements;

(b) the carrying out by a relevant authority of an assessment for the
15purposes of paragraph 6 of Schedule 4;

(c) the discharge of the duty imposed by section 17(1);

(d) expenditure which may, and may not, be regarded as an appropriate
use for money raised from the imposition of an infrastructure
supplement;

(e) 20the contents of an initial or final prospectus (in particular, the level of
detail to provide);

(f) the reliefs which may, and may not, be regarded as appropriate ones to
be applied in relation to infrastructure supplements.

34 Regulations

(1) 25Any power to make regulations under this Part is exercisable by statutory
instrument.

(2) Regulations under this Part—

(a) may make provision which applies generally or only for specified cases
or which applies subject to specified exceptions;

(b) 30may make different provision for different purposes or in relation to
different areas;

(c) may make incidental, supplementary, consequential, transitional,
transitory or saving provision.

(3) A statutory instrument containing (whether alone or with other provision)
35regulations mentioned in subsection (4) may not be made unless a draft of the
instrument has been laid before, and approved by a resolution of, each House
of Parliament.

(4) The regulations are—

(a) regulations under section 17(4) (power to vary etc. matters for which
40money raised from the imposition of an infrastructure supplement may
not be used);

(b) regulations under section 19(4) (power to amend Schedule 4);

(c) regulations under section 20(8) (power to amend categories of relevant
persons to be consulted under section 20);

Local Government Finance BillPage 28

(d) regulations under section 30 which include provision within section
31(2) (power to amend section 90 of the 1988 Act).

(5) A statutory instrument containing regulations under this Part, other than
regulations mentioned in subsection (4), is subject to annulment in pursuance
5of a resolution of either House of Parliament.

General

35 Crown application

This Part binds the Crown.

36 Interpretation of Part 3

10In this Part—

  • “billing authority” has the meaning given by section 144(2) of the 1988
    Act;

  • “chargeable amount” is to be read in accordance with section 23;

  • “chargeable day” has the meaning given by section 21(5);

  • 15“chargeable period” has the meaning given by section 21(6);

  • “final prospectus” has the meaning given by section 18(c);

  • “financial year” has the meaning given by section 145(3) of the 1988 Act;

  • “functional body” has the meaning given by section 17(13);

  • “hereditament” has the meaning given by section 64 of the 1988 Act;

  • 20“infrastructure supplement” has the meaning given by section 15(1);

  • “initial prospectus” has the meaning given by section 18(a);

  • “local non-domestic rating list” has the meaning given by section 41(1) of
    the 1988 Act;

  • “lower-tier authority” has the meaning given by section 17(8) and (9);

  • 25“non-domestic ratepayer” has the meaning given by section 15(3);

  • “rateable value”, in relation to a hereditament, has the meaning given by
    section 22(11);

  • “rateable value threshold” has the meaning given by section 22(2);

  • “relevant authority” has the meaning given by section 16(1);

  • 30“section 45 ratepayer” has the meaning given by section 21(3);

  • “the 1988 Act” has the meaning given by section 15(4).

Part 4 Other local levies

Property owner levy

37 35Business improvement districts: property owner arrangements and levy

Schedule 5 contains provision enabling billing authorities in England to make
property owner arrangements and impose property owner levy in business
improvement districts.

Local Government Finance BillPage 29

Business rate supplement

38 Power of mayoral combined authorities to impose business rate supplements

(1) The Business Rate Supplements Act 2009 is amended as follows.

(2) In section 2 (definition of “levying authority”)—

(a) 5in subsection (1), after paragraph (d) insert—

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

(b) after that subsection insert—

(1A) 10The functions of a mayoral combined authority under this Act
are exercisable only by the mayor acting on behalf of the
authority.”

(3) In section 3 (use of money raised by a BRS), in subsection (8), after paragraph
(b) insert—

(c) 15in relation to a mayoral combined authority, a county council or
district council whose area forms part of the mayoral combined
authority’s area.”

(4) In section 5 (prospectus), in subsection (2), at the end insert “or a mayoral
combined authority.”

20Part 5 Final provisions

39 Power to make consequential provision

(1) The Secretary of State may by regulations make provision that is consequential
on any provision of this Act.

(2) 25The power to make regulations under this section—

(a) is exercisable by statutory instrument;

(b) includes power to make different provision for different purposes or in
relation to different areas;

(c) includes power to make transitional, transitory or saving provision;

(d) 30includes power to make provision having effect in relation to times
before this Act is passed, provided that it does not increase any
person’s liability to non-domestic rates under Part 3 of the Local
Government Finance Act 1988;

(e) may, in particular, be exercised by amending, repealing or revoking
35any provision made by or under primary legislation passed before, or
in the same Session as, this Act.

(3) A statutory instrument that contains (whether alone or with other provision)
regulations under this section that amend or repeal any provision of primary
legislation may not be made unless a draft of the instrument has been laid
40before, and approved by a resolution of, each House of Parliament.

(4) Any other statutory instrument containing regulations under this section is
subject to annulment in pursuance of a resolution of either House of
Parliament.