Localism Bill

My Lords, Amendments 129ZB and 129LAB would add the words ““non-domestic rates”” to new Section 52ZF(3)(a) and new Section 52ZJ(4)(a). There is no need to do this. The wording ““redistributed non-domestic rates”” covers the sums that would have to be taken into account in respect of non-domestic rates when an authority carried out its original council tax calculations. The noble Lord, Lord McKenzie, asked whether amounts of non-domestic rates are fully redistributed. The answer is yes, by virtue of Schedule 8 to the Local Government Finance Act 1988. When making substitute calculations to determine an amount of council tax that is not excessive by reference to the principles under the new Sections 52ZF and 52ZJ, an authority must use the amount determined in its previous calculations for redistributed non-domestic rates. This is because an authority should not be able to change its estimate of the amount it will accrue in the year in respect of redistributed non-domestic rates to calculate an amount of council tax which complies with the excessiveness principles.