delete Special provision for the calculation of retained rates income for the financial year beginning on 1st April 2020
Amends the Non-Domestic Rating (Levy and Safety Net) Regulations 2013 to update business rates baseline calculations, levy rates, and safety net thresholds for English local authorities for years from April 2021. Introduces new formulas incorporating COVID-19 business rates relief (Expanded Retail Discount, Nursery Discount, CARF) into retained rates income calculations. Adds Schedules 1B and 6 with authority-specific baseline figures.
This amendment perpetuates and expands a highly complex, distortionary system of business rates taxation and central government control over local authority funding. The regulation embeds temporary COVID-19 relief measures (which should have expired) into permanent formulaic calculations, creating ongoing political allocation of resources rather than market-determined outcomes. The maze of definitions, formulas, and authority-specific schedules (Schedules 1B and 6 with their column A/B/C/D/E/F referencing) imposes significant administrative compliance costs on billing authorities and distorts business location decisions through rate relief that picks winners and losers across sectors. Business rates themselves are a distortionary tax on commercial property that increases costs for retailers and businesses; this amendment doubles down on that approach rather than moving toward fundamental reform.