Non Domestic Rating Account: year ended 31 March 2023

Scottish Government White Paper Accounts for Non Domestic Rating 2022 to 2023.

Notes to the Account

1. The “Non-domestic Rating Account” for each financial year is audited by Carole Grant appointed by the Auditor General for Scotland. It shows, as items of account (rather than actual cash), sums paid to and from the account during 2022-23 (Schedule 12, paragraph 7). The surplus or deficit in any financial year is carried forward to the next financial year as shown in the Statement of Balances. (Schedule 12, paragraph 8). The balance on the account is taken into consideration when calculating the distributable amount. This ensures, that when financial years are taken together, all non-domestic rates paid to Scottish Ministers are redistributed to authorities.

2. Each levying authority is required to calculate the non-domestic rating contribution for the year before it begins (the provisional amount; Schedule 12, paragraph 11(2) as amended by paragraph 176(19c) of Schedule 13 to the Local Government etc (Scotland) Act 1994) and the authority is required to do a final calculation after the year ends (Schedule 12, paragraph 11(5)). The provisional amount is paid during the year in such instalments as Scottish Ministers direct (Schedule 12, paragraph 11(4)).

3. Scottish Ministers paid out the Distributable Amount of £2,766 million for 2022-23 (Schedule 12, paragraph 9) as set out in the Local Government Finance (Scotland) Order 2022. The Distributable Amount is paid to authorities in proportion to each local authority’s 2021-22 mid-year non-domestic rates income return net of any prior year adjustments.

4. Due to the nature of the non-domestic rates returns cycle the interim returns for any given year are received after the Account is prepared. By 31 March 2023 all interim payments (£123 million) and interim receipts (£176.8 million) in respect of interim adjustments to the provisional contributable amounts for 2021-22 had been completed. In addition, the final payments (£10,364) and final receipts (£1,542) in respect of 2020-21 have now been completed. These final amounts were not available at the completion time of the 2021-22 account as a direct impact of the delays in receiving the necessary returns caused by COVID‑19. Both the 2021-22 interim payments and receipts and the 2020-21 final payments and receipts are included within this Account.

5. The accounts are prepared on a receipts and payments basis in accordance with the requirements of the Local Government Finance Act 1992.

Louise McDonald, Accountable Officer, Director-General Communities



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