Dear Billing
Authority Finance Directors (copied to Chiefs Executives of Billing and Major
Precepting Authorities)
In recent weeks,
local authorities have provisionally been completing NNDR1s in advance of
setting budgets.
This process has
raised issues about the adjustment that should be made for future losses on
appeal (line 35); and, in particular, about the financial impact of having to
reflect, in 2013-14, the total cost of any refunds (in respect of years before
2013-14) that fall due to ratepayers as a result of successful appeals in
2013-14 and later years.
The Government has
today decided that it will make regulations providing that the cost of such
refunds (i.e. sums paid to billing authorities post 1 April 2013 in respect of
refunds for rates paid in the years before 2013-14) can be spread over the five
years 2013-14 to 2018-19, instead of being accounted for in their entirety in
2013-14.
Our intention is to
make the regulations before the start of the financial year. We will
provide further details shortly.
Billing authorities
will have the opportunity to revise the figure at line 35 of the NNDR1 in the
final return they make to central government by 31 January. Where billing
authorities think that they might make changes to a provisional NNDR1 already
submitted to the Department (and sent to their major precepting authorities),
they should tell their precepting authorities as soon as possible to assist
them with their budgeting process.
Kind regards
Mark
Mark
Barnett
Deputy
Director, Business Rates and Valuation
Department
for Communities and Local Government
5/D1
Eland House, Bressenden Place, SW1 5DU
Tel:
0303 444 4217
mark.barnett@communities.gsi.gov.uk