Be it enacted by the Queen’s most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—
Non-domestic Rating
England and Wales
The Local Government Finance Act 1988 (referred to in this Part as “the 1988 Act”) is amended as set out in Schedule 1 (which provides for mandatory or discretionary relief from non-domestic rates for certain hereditaments in rural settlements).
Part III of the 1988 Act is amended as set out in subsections (2) to (6) (which provide for the abolition of liability to non-domestic rating in respect of sporting rights).
In section 64(4) (relevant hereditaments), paragraph (d) (rights of sporting severed from occupation of land) is omitted.
In section 65 (owners and occupiers of hereditaments or land)—
in subsection (3), for “subsections (4) to (9) below” there is substituted “ the following provisions of this section ”, and
subsection (9) (owners and occupiers of rights of sporting) is omitted.
In Schedule 5 (hereditaments exempt from local non-domestic rating), paragraphs 10 (certain fishing rights) and 14(3) (fishing and shooting rights of drainage authorities) are omitted.
In Schedule 6 (rateable value of non-domestic hereditaments), after paragraph 2B there is inserted—
In paragraph 3 of Schedule 6 (alternative rules for determination of rateable value of certain hereditaments), in sub-paragraphs (1)(a) and (2)(a), for “2B” there is substituted “ 2C ”.
After section 65 of the 1988 Act there is inserted—.
In Schedule 5 to the 1988 Act (hereditaments exempt from non-domestic rating), after paragraph 19 there is inserted—
Scotland
Schedule 2 (which provides for mandatory or discretionary relief from non-domestic rates for certain lands and heritages ...) is to have effect.
Enactments relating to non-domestic rating apply to the Crown as they apply to other persons.
Accordingly, liability to a non-domestic rate in respect of lands and heritages is not affected by the fact that—
the lands and heritages are occupied by the Crown or by a person acting on behalf of the Crown or are used for Crown purposes, or
the Crown or a person acting on behalf of the Crown is entitled to possession of the lands and heritages.
Section 3(1) of the Local Government (Scotland) Act 1975 is to have effect as if the reference to making an alteration in the valuation roll under the enactments there mentioned included a reference to the coming into force of this section.
If (apart from this subsection) relevant lands and heritages would be treated as justifying two or more separate entries in the valuation roll, the lands and heritages are to be treated—
as justifying only one such entry, and
as occupied by the person mentioned in subsection (5)(b) appearing to the rating authority to occupy the largest part of the lands and heritages to which the single entry relates.
“Relevant lands and heritages” are lands and heritages which—
if they were occupied by a single occupier, would attract a single entry in the valuation roll, and
are occupied by more than one of any of the following—
a Minister of the Crown,
a Government department, or
an officer or body exercising functions on behalf of the Crown.
Subsection (4) does not apply to lands and heritages provided or maintained by a local authority or joint board (within the meaning of the Local Government (Scotland) Act 1973).
The Secretary of State may by order amend subsection (6) so as to alter the persons for the time being referred to there.
Subsection (4) does not affect the power conferred by section 6A of the Valuation and Rating (Scotland) Act 1956.
In this section—“enactment” includes any subordinate legislation (within the meaning of the Interpretation Act 1978),“non-domestic rate” is to be construed in accordance with section 7B of the Local Government (Scotland) Act 1975.
After this section comes into force, no lands and heritages which are occupied for the purposes of a visiting force, or a headquarters, in pursuance of arrangements made in that behalf with any Government department are to be entered in the valuation roll.
In this section—“headquarters” means an international headquarters or defence organisation designated by an Order in Council under section 1 of the International Headquarters and Defence Organisations Act 1964,“visiting force” means any such body, contingent or detachment of the forces of any country as is a visiting force for the purposes of any provision of the Visiting Forces Act 1952.
The power to make an order under paragraph 3(2)(c)(ii) and 3A(9) of Schedule 2 shall be exercisable by statutory instrument, and no such order shall be made unless a draft of the order has been laid before and approved by resolution of each House of Parliament.
The power to make an order as mentioned in subsection (1) may be exercised differently in relation to different areas or in relation to other different cases or descriptions of case.
Parishes and Parish Councils
Establishment and review
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Consultation
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Supplemental
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Powers of Parish Councils and Community Councils
Transport etc.
A parish council or community council may—for the benefit of persons in the council’s area.
establish and maintain any car-sharing scheme, or
assist others to establish and maintain any car-sharing scheme,
A parish or community council may impose any conditions they think fit—
on the participation of persons in any scheme established and maintained by the council under subsection (1)(a) (including conditions requiring persons who receive fares under the scheme to contribute to the costs of establishing and maintaining it), or
on the giving of any assistance under subsection (1)(b).
For the purposes of this section—
a car-sharing scheme is a scheme for the provision of private cars for use on journeys in the course of which one or more passengers may be carried at separate fares, and
the participants in a car-sharing scheme are those who make private cars available for use under the scheme or who are eligible for carriage as passengers under the scheme.
In this section—
“private car” means a motor vehicle other than a public service vehicle, a licensed taxi, a licensed hire car or a motor cycle,
“motor vehicle”, “public service vehicle” and “fares” have the same meaning as in section 1 of the Public Passenger Vehicles Act 1981, and
“licensed taxi” and “licensed hire car” have the meaning given by section 13(3) of the Transport Act 1985.
After section 106 of the Transport Act 1985 there is inserted—
A parish council or a community council may enter into arrangements with any licensed taxi operator or licensed hire car operator under which—
the operator grants fare concessions on local journeys specified in the arrangements to some or all of the persons falling within subsection (2), and
the council reimburse the cost incurred in granting the concessions.
The persons falling within this subsection are persons who are—
resident in the council’s area, and
specified for the time being in or under subsection (7) of section 93 of the Transport Act 1985 as eligible to receive travel concessions under a scheme established under that section.
Arrangements made under subsection (1) may specify such other terms and conditions as the council think fit.
In subsection (1) “licensed taxi operator” and “licensed hire car operator” mean a person who provides a service for the carriage of passengers by licensed taxi (as defined by section 13(3) of the Transport Act 1985) or by licensed hire car (as so defined).
A parish council or community council may investigate—
the provision and use of, and the need for, public passenger transport services in their area,
the use of and need for roads in their area, and
the management and control of traffic in their area.
A parish council or community council may publicise information on public passenger transport services in their area or, on any conditions they think fit, assist others to do so.
In this section “public passenger transport services” has the same meaning as in the Transport Act 1985 (see section 63(10)).
After section 274 of the Highways Act 1980 there is inserted—
Crime prevention
A parish council or community council may, for the detection or prevention of crime in their area—
install and maintain any equipment,
establish and maintain any scheme, or
assist others to install and maintain any equipment or to establish and maintain any scheme.
In section 92 of the Police Act 1996 (grants by local authorities)—
in subsection (1)—
for “or London borough” there is substituted “ London borough, parish or community ”, and
for “county, district, county borough or borough” there is substituted “ council’s area ”, and
in subsection (2), for “or district” there is substituted “ district or parish ”.
General
There is to be paid out of money provided by Parliament—
any expenses of the Secretary of State incurred in consequence of this Act, and
any increase attributable to this Act in the sums payable out of money so provided under any other enactment.
There is to be paid into the Consolidated Fund any increase attributable to this Act in the sums payable into that Fund under any other enactment.
Schedule 3 (which makes minor and consequential amendments) is to have effect.
The enactments shown in Schedule 4 (which include some that are spent) are repealed to the extent specified in the third column.
Subject to subsections (2) and (3), this Act is to come into force on such day as the Secretary of State may by order made by statutory instrument appoint, and different days may be appointed for different purposes.
Part II and paragraphs 4 to 10 and 21 of Schedule 3 are to come into force at the end of the period of two months beginning with the day on which this Act is passed.
This Part (except section 33) is to come into force on the passing of this Act.
An order under subsection (1) may make such transitional provisions and savings as the Secretary of State considers necessary or expedient in connection with any provision brought into force by the order.
This Act may be cited as the Local Government and Rating Act 1997.
This Act does not extend to Northern Ireland.
Relief from non-domestic rates for general stores etc. in rural settlements: England and Wales
After section 42 of the 1988 Act there is inserted—.
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In section 47 (discretionary relief)—
in subsection (1), after “(3) below” there is inserted“ or the rural settlement condition and the second condition mentioned in subsection (3) below ”and for “43(4) to (6)” there is substituted“ 43(4) to (6B) ”,
after subsection (3) there is inserted—.
In section 48 (discretionary relief: supplementary), at the end of subsection (1) there is added“ (but subsection (5) below does not apply for the purposes of subsection (3B)(a) of that section) ”.
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Relief from non-domestic rates for general stores etc. in rural settlements: Scotland
Rural settlement list
Each rating authority must compile and maintain, in accordance with paragraph 2, a list (to be called its rural settlement list).
A rural settlement list is to have effect for each financial year and must identify for each financial year any settlements mentioned in sub-paragraph (3).
The settlements referred to in sub-paragraph (2) are those which—
are wholly or partly within the authority’s area,
appear to the authority to have had a population of not more than 3,000 on the last 31st December before the beginning of the financial year in question, and
in that financial year are wholly or partly within an area designated by the Secretary of State by order as a rural area for the purposes of this paragraph.
A rural settlement list must identify the boundaries of each settlement (whether by defining the boundaries or referring to boundaries defined in a map or other document), but if a settlement is not wholly within the area of a rating authority the list need not identify the boundaries outside the authority’s area.
An order under sub-paragraph (3)(c) may provide for designating as a rural area any area for the time being identified by any person, in any manner, specified in the order.
Sub-paragraph (1) does not apply to a rating authority in respect of any financial year for which there are no such settlements as are mentioned in sub-paragraph (3) (and, accordingly, if the authority have compiled a rural settlement list, they are to cease to maintain that list).
Preparation and maintenance of lists
The rating authority must, throughout the period of three months preceding the beginning of the first financial year for which a rural settlement list is to have effect, make available for inspection a draft of the list in the form in which the authority propose that it should have effect for that year.
In each financial year for which a rural settlement list has effect the rating authority must (if it appears to the authority that paragraph 1(1) will apply to the authority in respect of the next financial year) review the list and consider whether or not, for the next financial year, any alterations are required to the list in order to give effect to paragraph 1(2).
If following the review the authority consider that any such alterations are required for that year, they must, throughout the three months preceding the beginning of that year, make available for inspection a draft of the list in the form in which they propose that it should have effect for that year.
A rating authority which has compiled a rural settlement list must make it available for inspection in the form in which the list has effect for each financial year to which it relates.
Where a rating authority are required to make any list or draft available under this paragraph, they must make the list or draft available at any reasonable hour (and free of charge) at their principal office.
Mandatory relief
For any period in a financial year where sub-paragraph (2) applies to lands and heritages, the non-domestic rate leviable in respect of the lands and heritages is to be one half of the non-domestic rate which would have been leviable apart from this paragraph.
This sub-paragraph applies where—
the lands and heritages are within a settlement identified in the rating authority’s rural settlement list for the financial year in which the period falls,
the rateable value of the lands and heritages shown in the valuation roll at the beginning of that financial year is not more than any amount prescribed by the Secretary of State by order, and
during the period concerned—and sub-paragraphs (3) to (5) apply for the purposes of this sub-paragraph.
the whole or part of the lands and heritages is used as a qualifying general store, qualifying food store or qualifying post office, or
any conditions prescribed by the Secretary of State by order are satisfied;
The whole or part of lands and heritages is used as a qualifying general store for any period in a financial year if—
a trade or business consisting wholly or mainly of the sale by retail of both food for human consumption (excluding confectionery) and general household goods is carried on there, and
such a trade or business is not carried on in any other lands and heritages or part of any lands and heritages, in the settlement concerned.
The whole or part of lands and heritages is used as a qualifying food store for any period in a financial year if a trade or business consisting wholly or mainly of the sale by retail of food for human consumption (excluding confectionery and excluding the supply of food in the course of catering) is carried on there.
In subsection (3A) above, the supply of food in the course of catering includes—and for the purposes of paragraph (b) above “hot food” means food which, or any part of which—
any supply of food for consumption on the premises on which it is supplied; and
any supply of hot food for consumption off those premises;
has been heated for the purposes of enabling it to be consumed at a temperature above the ambient air temperature; and
is at the time of supply above that temperature.
The whole or part of lands and heritages is used as a qualifying post office for any period in a financial year if—
it is used for the purposes of a universal service provider (within the meaning of Part 3 of the Postal Services Act 2011) and in connection with the provision of a universal postal service (within the meaning of that Part), and
neither the whole nor part of other lands and heritages in the settlement concerned is so used.
Where the whole or part of lands and heritages is used as a qualifying general store or qualifying post office for any period in a financial year, it is not to be treated as ceasing to be so used merely because the condition in sub-paragraph (3)(b) or (4)(b) ceases to be satisfied.
The amendments to this paragraph made by section 29 of the Local Government in Scotland Act 2003 (asp 1) (which extend mandatory relief to certain food stores) are to have effect only as respects financial years beginning on or after 1st April 2003.
For any period (“the relevant period”) in a financial year beginning on or after 1st April 2003 where sub-paragraph (2) applies to lands and heritages, the non-domestic rate leviable in respect of the lands and heritages is to be one half of the non-domestic rate which would have been leviable apart from this paragraph.
This sub-paragraph applies where—
the rateable value of the lands and heritages shown in the valuation roll at the beginning of the financial year in which the relevant period falls is not more than any amount prescribed by the Scottish Ministers by order,
the lands and heritages consist wholly or mainly of land or a building which, on at least 183 days during the period of one year which ends immediately before this sub-paragraph comes into effect, was (or was, by virtue of any enactment, treated as being) agricultural lands and heritages for the purposes of section 7(3) (no agricultural lands and heritages to be entered in the valuation roll) of the Valuation and Rating (Scotland) Act 1956 (c. 60), and
during the relevant period, the land or building—
is not (and is not, by virtue of any enactment, treated as being) agricultural lands and heritages for those purposes, and
is occupied by a relevant person.
For the purposes of sub-paragraph (2)(b)—
any part of the lands and heritages which was, on the days which are taken into account for the purposes of determining whether the condition set out in that sub-paragraph is met, a dwelling (within the meaning of Part II (council tax) of the Local Government Finance Act 1992 (c. 14)) is to be disregarded for the purposes of determining whether that condition is met, and
a building which has replaced a building which was, on those days, an agricultural building (within the meaning of section 7(2) of that Act of 1956) is to be treated as if it were the original building.
For the purposes of sub-paragraph (2)(c), land or a building is occupied by a relevant person if it is occupied by—
the person who occupied the land or building on the days which are taken into account for the purposes of determining whether the condition set out in sub-paragraph (2)(b) is met, or
a member of that person’s family.
If the land or building was occupied, on the days which are taken into account for the purposes of determining whether the condition set out in sub-paragraph (2)(b) is met, by a body corporate or a partnership, the reference in subsection (4)(a) above to a person is to be treated as a reference to—
any person who, on each of those days, had (alone or together with members of that person’s family)—
more than half the voting rights in the company, or
the right to appoint or remove a majority of the directors of the company, or, as the case may be
any person who, together with members of that person’s family, were, on each of those days, both, all or a majority of the partners in the partnership.
In determining, for the purposes of sub-paragraph (4)(b) or (5), whether a person is a member of the same family as another—
a person is to be so treated if that person is—of the other, and
the spouse or a brother or sister of the spouse,
a parent or other ascendant or child (or step-child) or other descendant,
a brother or sister or the spouse of a brother or sister, or
an uncle, aunt, niece, nephew or cousin,
a person is to be treated as another’s spouse if they live together—
as if they were husband and wife, or
in a relationship which has the characteristics of the relationship between husband and wife except that the persons are of the same gender.
Sub-paragraph (2) does not apply to land and heritages during any period in which section 7B (rate relief for certain buildings used for breeding or rearing horses) of that Act of 1956 applies in relation to the land and heritages.
Subject to sub-paragraph (9), this paragraph ceases to have effect at the end of the period of five years beginning with the day on which this paragraph comes into effect.
The Scottish Ministers may by order extend or further extend the period mentioned in sub-paragraph (8).
If the period is extended or further extended sub-paragraph (2) does not apply to lands and heritages after the end of the period of five years beginning with the day on which it first applied to the lands and heritages.
Discretionary relief
Without prejudice to section 25A of the Local Government (Scotland) Act 1966, a rating authority may reduce or remit any non-domestic rate leviable in respect of lands and heritages for any period in a financial year in which any of the conditions mentioned in sub-paragraphs (2) to (2B) applies.
The first of those conditions is—
that the lands and heritages are within a settlement identified in the rating authority’s rural settlement list for the financial year in which the period falls, and
that the rateable value of the lands and heritages shown in the valuation roll at the beginning of that financial year is not more than any amount prescribed by the Secretary of State by order.
The second of those conditions is that paragraph 3A(2) applies in relation to the lands and heritages.
The third of those conditions is that—
section 7B (rate relief for certain buildings used for breeding or rearing horses) of that Act of 1956 applies in relation to the lands and heritages,
that section did not apply in relation to the lands and heritages before 1st April 2003, and
the rateable value of the lands and heritages shown in the valuation roll at the beginning of the financial year is not more than any amount prescribed by the Scottish Ministers by order.
Where paragraph 3(2)(c) does not apply, the rating authority must not, by virtue of this paragraph, make a reduction or remission unless they are satisfied that—
the lands and heritages are used for purposes which are of benefit to the local community, and
it would be reasonable for the rating authority to make such a reduction or remission, having regard to the interests of persons liable to pay council tax set by them.
The amendments to this paragraph made by section 28 of the Local Government in Scotland Act 2003 (asp 1) (which allow discretionary relief to be given to certain former agricultural premises and certain buildings used for breeding or rearing horses) are to have effect only as respects financial years beginning on or after 1st April 2003.
Interpretation
In this Schedule—“financial year” means the twelve months ending with 31st March,“non-domestic rate” is to be construed in accordance with section 7B of the Local Government (Scotland) Act 1975,“rateable value” is to be construed in accordance with section 6 of the Valuation and Rating (Scotland) Act 1956.
Minor and consequential amendments
Valuation and Rating (Scotland) Act 1956 (c.60)
After section 6A(1) of the Valuation and Rating (Scotland) Act 1956 (power of Secretary of State to combine and divide lands and heritages) there is inserted—.
Local Government (Financial Provisions etc.) (Scotland) Act 1962 (c.9)
In section 4 of the Local Government (Financial Provisions etc.) (Scotland) Act 1962 (reduction and remission of rates)—
in subsection (5) for “the following subsection” there is substituted “ subsection (6) or, as the case may be, (6A) of this section ”,
in subsection (6) for “the following subsection” there is substituted “ subsection (7) of this section ”, and
after subsection (6) there is inserted—.
Local Government (Financial Provisions) (Scotland) Act 1963 (c.12)
In section 19 of the Local Government (Financial Provisions) (Scotland) Act 1963 (certain parks not to be entered in valuation roll), for subsection (1) there is substituted—.
Local Government Act 1972 (c. 70)
The Local Government Act 1972 is amended as follows.
In section 6 (term of office and retirement of district and county councillors)—
in subsection (2)(c), for the words from “by an order” to the end there is substituted “ as mentioned in subsection (3) below ”, and
after subsection (2) there is added—
Section 9 (parish meetings and councils) is amended as follows.
Subsections (2), (3) and (5) are omitted.
In subsection (4), for “or Part II of the Local Government Act 1992” there is substituted “ Part II of the Local Government Act 1992 or section 14 of the Local Government and Rating Act 1997, ”.
In subsection (6)—
for “this section” (in the first place it appears) there is substituted “ section 16 of the Local Government and Rating Act 1997 ”, and
for “this section” (in the second place it appears) there is substituted “ section 16 of the Act of 1997 ”.
In section 11 (orders for grouping parishes under common parish councils), in subsection (5)—
“section 9 or” is omitted,
after “1992” there is inserted “ or section 16 of the Local Government and Rating Act 1997 ”, and
for “that section or subsection” there is substituted “ subsection (4) above or section 16 of the Local Government and Rating Act 1997 ”.
In section 12 (provision supplementary to provisions about parish meetings and councils), in subsection (1), “9” is omitted.
In section 16(1) (number of parish councillors), for the words from “shall” to the end there is substituted “ shall not be less than five. ”.
In paragraph 10 of Schedule 3 (electoral arrangements for certain parish councils), for “or Part II of the Local Government Act 1992” in each place it appears there is substituted “ of this Act, Part II of the Local Government Act 1992 or Part II of the Local Government and Rating Act 1997 ”.
Local Government (Scotland) Act 1975 (c. 30)
The Local Government (Scotland) Act 1975 is amended as follows.
In section 2 (alterations to the valuation roll)—
in subsection (1), paragraph (ee) is omitted,
after subsection (1) there is inserted—, and
in subsection (2)—
in paragraph (c) omit the words in the proviso from “or” (in the second place it appears) to “circumstances” (in the first place it appears) and from “or,” (in the fourth place it appears) to the end, and
in paragraph (cc) for “subsection (1)(ee)” there is substituted “ subsection (1A) ”.
In section 3 (supplementary valuation provisions)—
in subsection (1) after “2(1)” there is inserted “ , (1A) ”,
in subsection (4) omit the words “at any time while the roll is in force”,
after that subsection there is inserted—
After section 3 (supplementary valuation provisions) there is inserted —
Valuation and Rating (Exempted Classes) (Scotland) Act 1976 (c. 64)
Water (Scotland) Act 1980 (c. 45)
In section 109(1) of the Water (Scotland) Act 1980, for the definition of “agricultural lands and heritages” there is substituted—.
Representation of the People Act 1983 (c. 2)
In section 36 of the Representation of the People Act 1983 (local elections in England and Wales), after subsection (3AB) there is inserted—
National Heritage Act 1983 (c. 47)
Schedule 1 to the National Heritage Act 1983 is amended as follows.
In paragraph 2 (status of Board of Trustees of Victoria and Albert Museum)—
in sub-paragraph (4), for “sub-paragraph (5) and any other” there is substituted “ the provisions of any ”, and
sub-paragraph (5) is omitted.
In paragraph 12 (status of Board of Trustees of Science Museum)—
in sub-paragraph (4), for “sub-paragraph (5) and any other” there is substituted “ the provisions of any ”, and
sub-paragraph (5) is omitted.
In paragraph 22 (status of Board of Trustees of Armouries)—
in sub-paragraph (2), for “sub-paragraph (3) and any other” there is substituted “ the provisions of any ”, and
sub-paragraph (3) is omitted.
In paragraph 32 (status of Board of Trustees of Royal Botanic Gardens, Kew)—
in sub-paragraph (4), for “sub-paragraph (5) and any other” there is substituted “ the provisions of any ”, and
sub-paragraph (5) is omitted.
In paragraph 2 of Schedule 3 to the National Heritage Act 1983 (status of the Historic Buildings and Monuments Commission for England)—
in sub-paragraph (4), for “sub-paragraph (5) and any other” there is substituted “ the provisions of any ”, and
sub-paragraph (5) is omitted.
Dockyard Services Act 1986 (c. 52)
In section 3(1) of the Dockyard Services Act 1986 (treatment of land in designated dockyards)—
paragraph (c) and the word “and” preceding it, “or, in Scotland, land or heritages” and “or for public purposes” are omitted, and
for “those enactments” there is substituted “ that enactment ”.
Banking Act 1987 (c. 22)
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Local Government Finance Act 1988 (c. 41)
The Local Government Finance Act 1988 is amended as follows.
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In section 59 (contributions in aid), for “Crown hereditament” there is substituted “ hereditament which is exempt from local non-domestic rating by virtue of paragraph 19A of Schedule 5 below (property occupied for purposes of visiting forces etc.) ”.
In section 64 (hereditaments), subsections (5) to (7D) are omitted.
In section 67 (interpretation), after subsection (5) there is inserted—
In paragraph 15 of Schedule 5 (exempt parks), in sub-paragraph (3), before paragraph (a) there is inserted—.
National Maritime Museum Act 1989 (c. 8)
Section 1(6) of the National Maritime Museum Act 1989 (exemption from rates of land occupied for purposes of Museum) is omitted.
Local Government Finance Act 1992 (c. 14)
In Schedule 12 to the Local Government Finance Act 1992 (payments to local authorities by the Secretary of State), in paragraph 10—
in sub-paragraph (2)(a), for “any rule of law relating to Crown exemption” there is substituted “ section 7 (exemption for visiting forces etc.) of the Local Government and Rating Act 1997 ”,
in sub-paragraph (3)(a)—
in paragraph (ii) “and” is omitted,
after paragraph (iii) there is inserted.
Repeals