delete Special provision for the calculation of retained rates income for the financial years beginning on 1st April 2013, 1st April 2014, 1st April 2015, 1st April 2016 and 1st April 2017
Amends the Non-Domestic Rating (Levy and Safety Net) Regulations 2013 to modify business rates retention calculations. Key changes include: increasing instalment payments from 10 to 12 per year; adjusting percentages for first four instalments (9%) and subsequent instalments (8%); inserting new Schedule 1A with disregard provisions for designated areas; and modifying the definition of 'relevant year'. These regulations govern how local authorities retain and pay business rates income under the levy and safety net mechanism.
This amendment adds administrative complexity through new Schedule 1A disregard mechanisms and increased instalment requirements (12 vs 10) without corresponding benefits. The levy and safety net system itself is a Government intervention that distorts local authority incentives regarding business development — authorities face reduced incentive to attract new business if incremental rates income is subject to levy, while the safety net creates moral hazard. This 2015 amendment further entrenches this flawed system by adding technical provisions that increase compliance costs for billing authorities with no clear justification for the additional complexity.