Form

NNDR1: national non-domestic rates - guidance notes

Updated 17 December 2025

Applies to England

Please read these notes before completing and submitting your NNDR1.

Introduction

1. These guidance notes are intended to help billing authorities with the completion of the 2026-27 NNDR1 form. This form provides authorities with a tool by which they can calculate their non-domestic rating income for 2026-27 as required by regulation 3 of the Non-Domestic Rating (Rates Retention) Regulations 2013 (SI 2013/452) (as amended); and estimate the surplus or deficit on the collection fund for 2025-26, as required by regulation 13. The guidance notes do not replace, or override the legal provisions made in the Local Government Finance Act 1988, or any secondary legislation made under it. Authorities should take their own legal advice if they have doubts about what the legislation requires.

2. The 2026-27 NNDR form has undergone significant changes from the previous iteration. MHCLG has issued the NNDR form to authorities as early as possible to allow authorities to review it before completing it by the end of January. Please take time to review and test how the form has been designed ahead of completing it. If authorities have any issues with the form or believe that there is something in the form that they think should or should not apply to them they should contact the department at nndr.statistics@communities.gov.uk.

Significant changes from 2025-26 NNDR1

3. New business rates multipliers. The government announced that, from April 2026, new retail, hospitality and leisure (RHL) multipliers would be set 5p below the relevant national multipliers for qualifying properties with rateable values below £500k, funded by a high-value multiplier 2.8p above the national standard multiplier for properties with rateable values of £500,000 and above. The threshold between the standard and small multipliers (less than £51,000 RV) will not change.

The Non-Domestic Rating Multipliers for 2026/27 will be as follows:

• Small business RHL multiplier: 38.2p
• Small business non-domestic rating multiplier: 43.2p
• Standard RHL multiplier: 43.0p
• Standard non-domestic rating multiplier: 48.0p
• High-value non-domestic rating multiplier: 50.8p

4. Business rates retention reset. The Business Rates Retention System (BRRS) is being reset from 1 April 2026. The reset will allow government to redistribute retained rates income in line with relative need and resources. In November the Department published a policy paper containing more detail about how the Reset would be delivered. This policy paper highlights a number of changes announced to the administration of the BRR system alongside the delivery of the reset. At the reset, all local authorities will be assigned new Business Rates Baselines (BRBs), Baseline Funding Levels (BFLs) and top-up or tariffs. New BFLs will be based on an updated assessment of need, developed as part of this government’s FFR 2.0. The reset is a redistributive exercise. All resources that local government currently have available which are associated with the BRRS will remain with local government post 1 April 2026.

5. 2026 Revaluation. Alongside the 2026 reset there will be a business rates revaluation. Revaluations reassess the valuation of non-domestic properties to reflect changes in the property market, resulting in increases or decreases to ratepayer bills. Assuming no other changes, at the local authority level overall bills will increase or fall depending upon whether RVs in that area have increased above or below the national average.

The government indicated at the outset of the BRRS that at business rates revaluations it would adjust each local authority’s top-up or tariff to ensure that, as far as practicable, a local authority’s retained rates income is unaffected by the revaluation. For previous revaluations, a technical adjustment was developed to mitigate the impact of the revaluation, and a methodology to achieve the stated policy intent was consulted on and implemented in 2017 and 2023. In 2026, the reset will act as the mechanism to adjust local authorities’ retained income from the BRRS for the effects of the revaluation.

6. Form design. As a consequence of the changes set out above, it has been necessary to make some significant changes to the 2026-27 NNDR1 form. More detail about these changes are set out in the policy paper Resetting the business rates retention system from 1 April 2026 – Chapter 6.

The most significant changes are the simplification of Part 2 of the form. Reducing the number of columns from 7 down to 3. There are also consequential amendments to part 1 of the form, to reflect changes in how government expects to treat section 31 grant compensation in the BRRS. Part 3 of the form has been changed as Central Share deduction lines have been removed as they are now be funded via S.31 grant – shown in part 1c. A table showing the calculation of S.31 grant for DAs against their baseline position has also been added to Part 3 of the form, for information.

From 2026-27, more funded business rates reliefs will be compensated for by section 31 grant. At the same time, S.31 grant compensation within the BRR system will be routed through local authority Collection Funds to streamline local government accounting for business rates retention. These changes do not impact on the Collection Fund calculation in Part 4, as this is for the year 2025-26. This change will first be seen in Part 4 of the 2027-28 NNDR1 and when the 2026-27 NNDR3 reconciles 2026-27.

7. Transitional Relief Supplement. At the Autumn Budget 2025 the Chancellor announced the introduction of a new 1p supplement to the relevant tax rate for ratepayers who do not receive Transitional Relief or the Supporting Small Business scheme to partially fund Transitional Relief. This will apply for one year from 1 April 2026.

Changes announced at the Autumn Budget not included in the 2026-27 NNDR1

8. Electric Vehicle Charging Points relief. At Autumn Budget 2025, the Chancellor announced the Electric Vehicle Charging Points relief. This is a ten-year 100% business rates relief for EVCPs separately assessed by the VOA and Electric Vehicle only forecourts to ensure that they face no business rates liability. The department will issue guidance in due course. Due to the timing of the 2026-27 NNDR1, this relief has not been included in the form, we expect that it will first be included in the 2026-27 NNDR3 and the 2027-28 NNDR1 forms.

Background

9. The rates retention scheme provides for non-domestic rates collected by a billing authority to be shared between it, its major precepting authorities^{[footnote 1]} and central government. It also provides that certain sums are to be treated as being outside of the scheme. These sums are retained in their entirety by the billing authority (or by the billing authority and some, or all, of its major preceptors).

10. The statutory framework effectively requires a billing authority, before the beginning of a financial year, to forecast the amount of business rates that it will collect during the year and, from this, to make a number of allowable deductions in order to arrive at a figure for its non-domestic rating income. It is the non-domestic rating income that is shared between the parties to the scheme. The framework also sets out how the billing authority is to treat allowable deductions, requiring that either they are paid to major precepting authorities or transferred to the authority’s General Fund.

11. The calculations that billing authorities make before the start of the financial year determine how much they must pay to central government and their major precepting authorities during the year. The amounts paid to major precepting authorities and retained by billing authorities are the amounts of General Fund business rates income that each authority needs to include in its 2026-27 budget. Since these payments are fixed at the outset of the year, it follows that any difference between forecast amounts and final outturns will result in a surplus, or deficit on the billing authority’s Collection Fund. Any such surplus or deficit is shared between central government, billing authorities and their major preceptors in line with their share of business rates.

12. Authorities are also required, in accordance with Regulation 13 of the Non-Domestic Rating (Rates Retention) Regulations 2013 (SI 2013/452) (as amended), to estimate the likely non-domestic rating surplus, or deficit on the Collection Fund for the current year (i.e. 2024-25). Regulation 13 effectively requires a billing authority to estimate the surplus/deficit that it believes will exist at 31 March 2025, based on a statutory calculation set out in Schedule 4 to the Regulations (as amended).

13. The estimated surplus or deficit will be shared between the billing authority, its major preceptors and central government and will be added (or subtracted) from each party’s share of 2026-27 non-domestic rating income. The 2026-27 NNDR1 enables (in Part 4) the billing authority to provide its estimate of the 2025-26 Collection Fund surplus/deficit.

14. For convenience, Part 1B of the form automatically calculates the sums due to billing authorities, major precepting authorities and central government in respect of:

• non-domestic rating income due under the rates retention scheme;
• the estimated Collection Fund surplus/deficit; and
• business rates income due outside the scheme to authorities (allowable deductions).

15. Business rates reliefs change the bills of ratepayers. In any year where relevant, the financial impact of these measures is addressed in the business rates retention system by central government, and authorities will be compensated for the loss to their “local share” of business rates by means of a S.31 grant.

16. For convenience, Part 1C of the NNDR1 automatically calculates the estimated sums that will be due to authorities and central government. The government will make S.31 payments, “on-account” over the course of 2026-27 to billing authorities for 100% of the S.31 grant shown in columns 5 and 6 of line 44. The billing authority will then distribute shares, where relevant, to central government, major precepting authorities and fire authorities, as part of the distribution of non-domestic rating income from the collection fund by retention share. Payments will be based on the estimated sums in Part 1C. Sums will be reconciled to outturn figures by MHCLG when 2026-27 certified NNDR3s are available and any differences paid to, or recovered from, authorities. “On account” payments will be made over the course of the year in line with the “schedule of instalments” in regulation 15 of the Non-Domestic Rating (Rates Retention) Regulations 2013 (SI 2013/452) (as amended). More information about the Budget measures can be found in the detailed notes (see Note E).

Completion and submission of NNDR1

17. The Non-Domestic Rating (Rates Retention) Regulations 2013 (SI 2013/452) (as amended) require billing authorities to notify the Secretary of State and their major precepting authorities of their calculation of non-domestic rating income for 2026-27 and their estimate of the 2024-25 surplus/deficit on the Collection Fund by Saturday 31 January 2026.

18. As set out in the introduction to these notes, the NNDR1 provides a tool to enable authorities to do this. The NNDR1 should be completed and sent to both the Secretary of State and major precepting authorities by Saturday 31 January 2026. The copy of the form should be e-mailed to nndr.statistics@communities.gov.uk and any relevant precepting authorities by the Chief Financial / Section 151 Officer. The email should include the officer’s electronic signature and a statement confirming that the amounts in the form are calculated in accordance with the regulations. This signed copy must also be submitted by Saturday 31 January 2026.

Detailed notes on completing the NNDR1

19. The 2026-27 NNDR1 comprises 4 parts. There are several data cells which authorities are required to populate (these have black borders). A number of information cells (these have green borders) are automatically derived, or calculated, using the inputs in the data cells. There are also a small number of pre-filled cells (these have blue borders) where data have automatically been entered by the Department.

20. The form is designed to provide billing authorities with the numbers they (and their major precepting authorities) need to complete the budget process, determine the payments that need to be made to central government and major precepting authorities during the year, and the transfers that billing authorities should make to their General Funds.

• Part 1 – provides a summary of the numbers needed by authorities for the in-year operation of the rates retention scheme. In all but a small number of cases (on lines 5 and 11a), it comprises either pre-filled cells or information cells which are derived from data entries in Parts 2 to 4 of the form.

• Part 2 – requires authorities to complete data cells for gross rates payable and the impact of reliefs, which lead to the calculation of a figure for “net rates payable.”

• Part 3 – requires authorities to complete data cells for estimated losses for bad debt and the alteration of lists and appeals (including interest, where applicable). These automatically adjust the “net rates payable” figure produced in Part 2 of the form, to produce a figure for “collectable rates.” Part 3 also requires authorities to complete data cells for business rates to be collected from renewable energy schemes and designated areas (if any). Part “3 DA Summary” requires authorities to provide figures at the individual designated area level, in 2026-27 this will include providing an updated baseline that is calculated in accordance with the regulations that designated the relevant areas. This information is used to determine the amounts to be disregarded for the purposes of the rates retention scheme.

• Part 4 – requires authorities to complete data cells for the calculation of the estimated surplus, or deficit on the Collection Fund as at 31 March 2025, and apportions that surplus or deficit based on calculations of the in-year and prior-year balances. The apportioned amounts are to be paid to, or from the Collection Fund during 2026-27. No significant changes have been made to Part 4 in 2026-27.

21. In all parts of the form, except Part 1, receipts (e.g. sums due to the billing authority from ratepayers, or central government) should always be entered as positive numbers. Payments from the authority or amounts foregone (e.g. reliefs given to ratepayers) should always be entered as negative numbers, unless specifically indicated.

22. All values in the form should be entered in whole £.

23. The form requires (as necessary) data inputs to be disaggregated between designated areas and the rest of the billing authority area. The form automatically calculates the total for the whole billing authority area.

24. The form automatically “greys-out” cells which are not needed by an authority, for example, because it does not have any designated areas. By selecting the authority’s name from the drop-down menu at the start of Part 1, an authority will be provided with only those data cells, information cells and pre-filled cells that are relevant to it.

25. In addition to the “greying-out” of sections of the form there are also areas that are shaded green. These sections contain either totals or cells which do not require data entry as, in the case of Part 1B, they are part of the calculation process and the data are brought forward from elsewhere in the form. The majority of these green cells have been protected to prevent the entry of incorrect data or to prevent formulae being amended. If you have a problem with the data shown in a protected cell, please do not remove the protection but contact MHCLG immediately (e-mail: nndr.statistics@communities.gov.uk).

26. The following notes explain in detail what authorities should enter in the data cells, how the figures in the information cells and pre-filled cells are derived, and their relevance to budgets and the operation of the scheme. Follow only the notes that are relevant to the cells that appear for your authority.

Part 1A: Non-Domestic Rating Income

Part 1A provides for the calculation of 2026-27 non-domestic rating income, as required by Schedule 1 to the Non-Domestic Rating (Rates Retention) Regulations 2013 (SI 2013/452) (as amended). Most of the cells are either pre-filled from elsewhere in the form.

Line 1: Collectable Rates

Information Cell. Authorities are not required to enter data

This gives a figure for collectable rates – in other words, the amount of business rates that the authority estimates will be collectable in 2026-27 from all ratepayers, taking account of any reliefs awarded and adjustments made by the authority for losses on collection and losses on appeal.

The figure will be automatically picked-up from the collectible rates line in Part 3 of the form.

Note A: Collectable Rates

A summary breakdown of the Collectable Rates value in Line 1 is provided on the right-hand side of Part 1a.

Lines 2 & 3: Transitional Protection Payments

Information Cells. Authorities are not required to enter data

These give information about the transitional protection payments that authorities must pay, or will receive, from central government.

The figures in lines 2 and 3 will be automatically picked-up from Part 2 of the form, where authorities are required to complete data cells which produce an amount for the transitional protection payment that an authority will make or receive.

Note B: Cost of Collection

Lines 4-6 provide details of the allowance for the cost of collection. The allowance provides billing authorities with income to help meet the cost of administering the rating system. The figure is a disregarded amount and is deducted from the collectable rates figure, as part of the calculation of non-domestic rating income. The sum that is deducted is retained in its entirety by the billing authority and, in accordance with schedule 3 of the Non-Domestic Rating (Rates Retention) Regulations 2013 (SI 2013/452) (as amended), is to be transferred to the billing authority’s General Fund during 2026-27.

For 2026-27 the cost of collection amount is changed. This is because new data had been used to calculate the distribution of amounts following the publication of the draft rating list for the 2026 revaluation, and new Area Cost Factors developed as part of the Fair Funding Review. The ACF values used in the provisional 2026-27 local government finance settlement can be found here: https://assets.publishing.service.gov.uk/media/69429abe36f089d38be1f207/ACA_Values.xlsx and the Foundation Formula ACA (LT) shown in column S should be used.

Line 4: Cost of Collection formula

Pre-filled Cell. Authorities are not required to enter data

The cell in line 4 is pre-filled. Paragraph 2 of Schedule 1 to the Non-Domestic Rating (Rates Retention) Regulations 2013 (SI 2013/452) (as amended), sets out how the figure has been calculated in accordance with a formula.

For information, the aggregate figures in the formula for 2026-27 are set out below:

where

hereds is the number of hereditaments entered in the VOA’s draft rating lists at November 2025.

ACF is the area cost factor for the authority.

£63,840,000 is 76% of the total allowance of £84,000,000

2,014,731 is the total number of hereditaments on the VOA’s draft rating lists at 16 November 2025, multiplied by the ACF for all authorities in England          

RV is the aggregate rateable value in the local rating list on 16 November 2025

£20,160,000 is 24% of the total allowance of £84,000,000

£85,896,792,953 is the sum of the rateable value of all hereditaments on the VOA’s draft list at 16 November 2025 multiplied by the ACF for all authorities in England.

Line 5 (legal costs) will be added in Line 6

Line 5: Legal Costs

Data Cell.      Authorities need to enter data

Authorities need to enter the amount (if any) of any legal costs that satisfy the conditions set out in paragraph 2(5) of Schedule 1 to the Non-Domestic Rating (Rates Retention) Regulations 2013 (SI 2013/452) (as amended). Any entry should be a positive number.

Line 6: Allowance for cost of collection

Information Cell. Authorities are not required to enter data

Line 6 provides details of the total allowance for the cost of collection. It is automatically calculated as the sum of lines 4 and 5.

As explained above, this sum is to be transferred to the billing authority’s General Fund during 2026-27.

Line 7: City of London Offset

Pre-filled Cell. Authorities are not required to enter data

This line is pre-filled by MHCLG. The figure for all authorities, except the City of London is £0. The City of London offset for 2026-27 is £14,009,000 .

Note C: Section 31 calculation

Line 8 is the calculation of the total amount of s31 grant to be added back to the calculation of National Domestic Rating Income. This amount will then flow through the Collection Fund and be shared out between central government, Billing Authority and Precepting Authority based on retention share. A fuller reconciliation of this amount is included in Part 1c, showing the share of each relief split by retention share. The amount in line 8 is the total of line 42 columns 5 and 6.

The value of s31 grant is made up of funded reliefs and adjustments for the RHL multiplier discounts and the High Value multiplier supplement. If the value of the supplement would create a negative balance, the minimum value of the s31 grant is capped at 0. Any supplement that is not then netted off against the s31 grant is then distributed through the Collection Fund, and the value of it is shown in line 9.

If a Billing Authority has Designated Areas, any section 31 grant due to the Designated Areas is deducted from the calculation of Non-Domestic Rating Income in Line 10 and added back to the Billing Authority’s calculation in the Collection Fund. The section 31 grant in the Designated Area is now included in the calculation of growth for the Designated Area, for the purposes of calculating 100% retention of any section 31 grant. Only the element of section 31 grant in Designated Areas that is above the baseline is awarded in full to the BA.

Government plans to bring forward Regulation changes to reflect this policy change that was announced in the Reset delivery policy paper. The NNDR has therefore been set up to reflect the anticipated structure of the system from 1st April 2026.

Line 8: Sums due to the authority excluding DA growth

Information Cell. Authorities are not required to enter data

Line 8, is the amount of section 31 grant added back to the calculation of National Domestic Rating Income. This amount represents the total amount of relief, supplement and discount adjustments, and is capped at zero.

Line 9: Value of s31 elements below the threshold in line 8 – for information

Information Cell. Authorities are not required to enter data

This line is for local authority information. It is intended to aid reconciliation of the amount in line 8 and shows any amount of negative balance that would have taken the total in line 8 below zero. This amount is not included in the calculation of non domestic rating income but shows the element of High Value multiplier supplement already included within it that has not been netted off in line 8.

Line 8 and line 9 together will show the total amounts of S.31 eligible amounts, of which the value in line 8 will be paid to the billing authority via S.31 grant and the value in line 9 will be the amount in respect of the High Value multiplier not netted off against other S.31 grant.

Line 10: Amounts retained in respect of Designated Areas

Information Cell. Authorities are not required to enter data

This cell provides the amount of non-domestic rates to be retained by the billing authority in respect of its Designated Area areas (if any) in accordance with the Non-Domestic Rating (Designated Areas) Regulations 2013, 2014, 2015, 2016, 2017, 2018, 2021, 2023, 2024 and 2025.

For authorities without designated areas, the figure is £0 and will be automatically entered in line 8.

For authorities with designated areas, the figure will automatically be picked-up from Part 3 of the form, (see Part 3, line 8, column 2 [Total Disregarded Amounts]).

The figure is a disregarded amount and is deducted from the collectable rates figure, as part of the calculation of non-domestic rating income. The sum is to be transferred to the billing authority’s General Fund during 2026-27. It is a component of the total amount due to the billing authority for the year shown in Part 1B.

Line 10a: Amounts of section 31 grant retained in respect of Designated Area

Information Cell. Authorities are not required to enter data

This cell provides the amount of section 31 grant to be retained by the billing authority in respect of its Designated Area areas (if any). It is picked up from Part 1C column 6 [Amount of Section 31 grant due to authorities to compensate for reliefs]).

Note D: Renewable Energy Schemes

Lines 11, 11a and 11b detail the amount of non-domestic rates to be retained by authorities in respect of designated renewable energy projects, in accordance with the Non-Domestic Rating (Renewable Energy Projects) Regulations 2013 (SI 2013/108),  The Non-Domestic Rating (Renewable Energy Projects) (Amendment) Regulations 2017 (SI 2017/1132) and The Non-Domestic Rating (Rates Retention and Renewable Energy Projects) (Amendment) Regulations 2024 (SI 2024/184). Authorities should note that the government will amend the Non-Domestic Rating (Renewable Energy Projects) Regulations 2013 in early 2026 to adjust for the effects of new business rates multipliers. Details on these planned changes were set out in the Reset delivery policy paper published in November.  

In accordance with regulation 7(2) and Schedule 3 to the Non-Domestic Rating (Rates Retention) Regulations 2013 (SI 2013/452) (as amended), the amount is retained by the billing authority unless the County Council was the responsible authority for determining the planning application which led to the hereditament becoming a designated renewable energy project, in which case, the amount in respect of that hereditament is transferred to the County Council.

Line 11: Amounts retained in respect of Renewable Energy Schemes

Information Cell. Authorities are not required to enter data

The figure will automatically be picked-up from Part 3 of the form, where authorities are required to complete data cells which produce the total amount to be retained in respect of designated renewable energy projects.

Line 11a: Sums retained by billing authority

Data Cell.     Authorities need to enter data  

In line 11a, billing authorities are required to enter the part of the amount in line 11 that they will retain, as the planning applications were not determined by the County Council.

London Boroughs, Metropolitan Districts and other Unitary Authorities need to ensure that they enter the same figures in line 11a as in line 11 as neither the GLA, nor Fire and Rescue Authorities, are eligible to receive a share of the growth arising from renewable energy schemes.

This figure is to be transferred to the billing authority’s General Fund during 2026-27. It is a component of the total amount due to the billing authority for the year.

Line 11b: Sums retained by major precepting authority

Information Cell. Authorities are not required to enter data

Line 11b automatically returns the amount due to a County Council because the relevant planning application(s) were determined by the County.  This is calculated as the difference between the values for line 11 and line 11a.

This sum is to be paid to the County Council hence it is a component of the total amount due to the County Council for the year.

Line 12: Non-Domestic Rating Income

Information Cell. Authorities are not required to enter data

Line 12 gives the billing authority’s non-domestic rating income for the year, in line with the calculation set out in paragraph 1 of Schedule 1 to the Non-Domestic Rating (Rates Retention) Regulations 2013 (SI 2013/452) (as amended). It is automatically calculated.

Part 1B: Payments

In accordance with the Non-Domestic Rating (Rates Retention) Regulations 2013 (SI 2013/452) (as amended), it is the non-domestic rating income which is shared between the billing authority, its major precepting authorities and central government. Regulation 3 requires authorities to calculate the sums due to each party.

Part 1B automatically provides for that calculation as well as setting out, in accordance with the Act and Regulations made under it, the treatment of other income (i.e. the sums deducted for the cost of collection, special authority deductions and disregarded amounts) under the rates retention scheme.

This section is shaded green as there are no cells that require authorities to enter data.

Line 13: % of non-domestic rating income to be allocated to each authority in 2026-27

Information Cell. Authorities are not required to enter data

For convenience, the relevant percentage shares are automatically entered for central government and each local authority, when the billing authority’s name is selected from the drop-down menu at the start of part 1.

For information, the percentage shares for authorities other than 100% Devolution Deal authorities are:

• Central government: 50% (33% where the billing authority is a London Borough or the Common Council of the City of London)

• Unitary billing authority which is a Fire and Rescue Authority: 50%

• Unitary billing authority which is not a Fire and Rescue Authority: 49%

• a billing authority in a two-tier area: 40%

• a County Council in a two-tier area which is a Fire and Rescue Authority: 10%

• a County Council in a two-tier area which is not a Fire and Rescue Authority: 9%

• a stand-alone Fire and Rescue Authority or Police and Crime Commissioner Fire and Rescue Authority: 1%

• Greater London Authority (GLA): 37%, London Boroughs and the Common Council of the City of London: 30%.

For 2026-27, 100% Business Rates Retention areas (consisting of the following authorities: Cornwall County Council and the authorities in the combined authority areas of Greater Manchester, Liverpool City Region, West of England and the West Midlands), will retain 100% of locally raised business rates.  For those authorities, the retained percentage share of non-domestic income in 2026-27 is:

• Greater Manchester billing authorities: 99%

• Liverpool City Region billing authorities: 99%

• West of England billing authorities: 94%

• West of England Combined Authority: 5%

• West Midlands billing authorities: 99%

• Cornwall County Council:         100%.

Line 14: Non-domestic rating income from rates retention scheme

Information Cell. Authorities are not required to enter data

These cells apportion the Non Domestic Rating Income from the bottom of Part 1a between central government, the billing authority and its major precepting authorities in accordance with regulations 4, 5 and 8 of the Non-Domestic Rating (Rates Retention) Regulations 2013 (SI 2013/452) (as amended).

Line 15: Cost of collection allowance

Information Cell. Authorities are not required to enter data

Adds back the allowance for the cost of collection from Part 1A as part of the billing authority’s income for the year.

Line 16: Amounts retained in respect of Designated Areas

Information Cell. Authorities are not required to enter data

Adds back the amount to be retained in respect of designated areas is included as part of the billing authority’s income for the year from the figure deducted in Part 1A. 100% of the figure is apportioned to the billing authority, except in the case of the designated area for South Tees Development Corporation, where any disregarded amount is shared 50:50 between Redcar & Cleveland and the Tees Valley Combined Authority.

Line 17: Amounts of S.31 grant retained in respect of Designated Areas

Information Cell. Authorities are not required to enter data

This line provides the amount paid 100% to billing authorities in respect of S.31 grant where there is growth in designated areas from Part 1A.

Line 18: Amounts retained in respect of renewable energy schemes

Information Cell. Authorities are not required to enter data

Line 18 provides that the amount retained in respect of renewable energy schemes is paid to the billing authority, except (in two tier areas) where an amount is due to the County Council in respect of hereditaments for which the County Council was the responsible authority for determining the planning application. The figure is automatically picked-up from Part 1A and is apportioned according to the breakdown entered by the authority in Part 1A lines 11a and 11b.

Line 19: City of London Offset

Information Cell. Authorities are not required to enter data

Line 19 provides the amount to be retained by the City of London in respect of the “offset” and forms part of the total amount due for the year. It is automatically picked-up from Part 1A. 100% of the figure is apportioned to the City of London.

Line 20: Port of Bristol hereditament s31 grant

Information Cell. Authorities are not required to enter data

Somerset Council is entitled to retain an amount in respect of the Port of Bristol hereditament, in accordance with the calculation set out in that Schedule.

Line 20, column 5, automatically calculates the amount due to North Somerset based on the authority’s data entry in Part 3. This amount is apportioned to the billing authority at column 2.

Line 21: Estimated Surplus/Deficit at end of 2025-26

Information Cell.  Authorities are not required to enter data

Line 21 sets out the shares of the estimated surplus, or deficit on the Collection Fund, due to the billing authority, its major precepting authorities and central government.  The values are brought forward from Part 4, line 20 [apportionment of the estimated 2025-26 surplus or deficit] and apportioned by the retention share from 2025-26 (shown in Part 4 Line 23).

The share of any estimated surplus due to central government or major precepting authorities is to be paid by the billing authority from the Collection Fund over the course of 2026-27 in accordance with the schedule of instalments set out in regulation 15 of the Non-Domestic Rating (Rates Retention) Regulations 2013 (SI 2013/452), (as amended). The share of any estimated deficit owed to the billing authority by central government or major precepting authorities is to be paid to the billing authority (and credited to its collection fund) in accordance with the same schedule of payments.

The billing authority’s share of any estimated surplus is to be transferred to its General Fund from its Collection Fund; and its share of any estimated deficit, is to be transferred from its General Fund to its Collection Fund in accordance with the schedule of instalments set out in Regulation 15.

Line 22: Total amount due to authorities

Information Cell. Authorities are not required to enter data

Line 22 provides the total amounts to be retained by the billing authority, its major precepting authorities and central government in 2026-27.

In the case of the central government, and (where they exist) the County Council, Fire and Rescue Authority, Police and Crime Commissioner Fire and Rescue Authority and GLA columns, the figure represents the total amount due to be paid by the billing authority during the year. The figure in the billing authority column represents the amount to be transferred from the billing authority’s Collection Fund to its General Fund.

Part 1C: Section 31 Grant – for information

This section of the form sets out the breakdown of Line 8 of the form above, showing the elements of S.31 grant that composes the value in line 8 in Part 1A. This section shows both the breakdown by relief, Supplement and Discount, it also shows the notional shares distributed to central government, Billing Authorities, Major Precepting Authorities and Fire Authorities.

Note E: Funding Budget and Spending Review Changes

Part 1C is for information. It is intended to provide authorities with a breakdown of the total amount of S.31 grant they receive (shown in Line 8 above).

Business rates continue to form a part of the business rates system. Longstanding reliefs will continue to reduce the income that local authorities would otherwise collect from some businesses in 2026-27 as per previous years.

The chancellor also made announcements launching new tax measures in 2026-27 at the Autumn Statement These include:

• Transitional Relief Supplement – a 1p supplement to the relevant tax rate for ratepayers who do not receive Transitional Relief or the Supporting Small Business scheme to partially fund Transitional Relief. This will apply for one year from 1 April 2026.

• 100% relief for Eligible Electric Vehicle Charging Points and Electric Vehicle only forecourts (EVCP relief) – a ten-year 100% business rates relief for EVCPs separately assessed by the VOA and Electric Vehicle only forecourts to ensure that they face no business rates liability. This measure is not included in the 2026-27 NNDR1.

The government has undertaken to compensate local authorities for the loss of income from awarding reliefs locally. Compensation will be provided by means of a grant payment to authorities under Section 31 (‘S.31’) of the Local Government Act 2003. From 2026-27, more funded reliefs will be compensated for via S.31 grant. This is a change being delivered as part of the Reset of the BRR system from 2026-27.

Payments will be made on the basis of estimates derived from data entries from Parts 1 or 2 of the form, and pre-held local authority data.

The government will make S.31 payments, “on account” over the course of 2026-27, based on 100% of this estimate. Sums will be reconciled to outturn figures when certified 2026-27 NNDR3s are available and any differences will be paid to, or recovered from, authorities. “On account” payments will be made over the course of the year, in line with the “schedule of instalments” in regulation 15 of the Non-Domestic Rating (Rates Retention) Regulations 2013 (SI 2013/452) (as amended).

Payments for S.31 funded reliefs in designated areas

In the technical reset consultation earlier this year, government confirmed that it was reconsidering the way it compensates authorities for reliefs in DAs going forwards. The government has continued to look at this as part of its review of how DA arrangements should operate from 2026.

DAs will continue to operate on a collectable rates basis and S.31 compensation will continue for relevant mandatory and discretionary reliefs awarded in a DA. S.31 compensation will not be provided for portions of mandatory reliefs which historically have been included in the baseline calculation of a DA. In the case of SBRR, we propose to fund the S.31 eligible portion of SBRR awarded through paying a set amount, based on authority’s returns for the 2024-25 NNDR3 and 2025-26 NNDR1 to ensure that compensation continues for this element.

However, government plans to improve the calculation of how much eligible relief should be paid in a DA area depending on whether the DA is generating ‘growth’. Under the existing system, if collectable rates are below a DA baseline – i.e. there is no growth in the DA - then the authority’s local share under the BRRS applies to any funded reliefs.

From 2026-27, any portion of reliefs under the baseline will continue to be awarded at the relevant local share, but any portions above the baseline amount will be provided at 100% as per the terms of the DA arrangement. This calculation will still be made at the billing authority level, rather than for each DA individually.

From 2026-27 Case A relief, in respect of Enterprise Zones, will be compensated by a section 31 grant paid to the billing authority. For Case A relief and Freeport Relief in respect of hereditaments in the tax site will continue to be awarded at 100% of the value.

For Investment Zones, the boundaries of the designated tax site and the designated Business Rates site were not required to match exactly. Where the tax site does overlap with the business rates site, relief in respect of hereditaments in the tax site will be awarded at 100% of the value. Where the tax site does not overlap with the business rates site, relief in respect of hereditaments in the tax site will be awarded based on the local retention share of the authority.

This part of the form uses the data entries in Parts 1 and 2, and local authority data to calculate the “on account” payments due to authorities in 2026-27.

Column 1 shows the share of a relief due to central government, Column 2 shows the share due to the Billing Authority, Column 3 shows the share due to the Major Precepting Authority (if relevant), Column 4 shows the share due to the Fire Authority (if relevant) and Colum 5 shows the total value of the relief, excluding any awarded at 100%  in respect of growth in Designated Areas.

Column 6 shows the amount of any relief in a Designated Area that is compensated at 100% to the Billing Authority, in lieu of growth that would have otherwise been retained if the relief hadn’t been awarded. Where the DAs in a local authority area are below the baseline, Part 3 contains a new calculation that “awards” compensation for eligible S.31 grant at 100% where this would take the DA income above the baseline value.

Any differences that occur as a result of rounding are reflected in central government’s share (column 1).

This section is for information and authorities are not required to enter data.

The following reliefs are compensated via S.31 grant, each line shows the total amount of S.31 in respect of each relief in Column 5. Columns 1-4 and column 6 show the amount of S.31 that is in respect of central government, Billing Authorities, Major Precepting Authorities (if relevant), Fire Authorities (if relevant) and in respect of growth in Designated Areas (if relevant).

Line 23: Small Business Rates Relief

As announced in the Resetting the business rates retention system from 1 April 2026 published here in paragraph 3.3.5., additional compensation for loss of supplementary multiplier income is no longer paid in the NNDR forms. At the 2026-27 Local Government Finance, this compensation is rolled into Revenue Support Grant from 1 April 2026.

Line 24: Cost to authorities of providing Charitable Occupation

Line 25: Cost to authorities of providing Community Amateur Sports Clubs (CASCs)

Line 26: Cost to authorities of providing 100% rural rate relief

Line 27: Public lavatories relief

Line 28: Low-carbon heat networks relief

Line 29: Improvement relief

Line 30: Partially occupied hereditament relief

Line 31: Empty Premises relief

Line 32: Supporting Small Business Scheme

Line 33: Film Studio relief

Line 34: Freeports relief

Freeport relief is paid as grant compensation paid in connection with growth policies that underpin DAs. As a result it is paid at 100% to eligible billing authorities as relief in respect of growth in a designated area, in column 6.

Line 36: Investment Zone relief

Line 36: EZ Case A relief

Freeport relief is paid as grant compensation paid in connection with growth policies that underpin DAs. As a result it is paid at 100% to eligible billing authorities as relief in respect of growth in a designated area, in column 6.

Line 37: In respect of the Port of Bristol

Information Cell. Authorities are not required to enter data

Somerset Council is entitled to retain an amount in respect of the Port of Bristol hereditament, in accordance with the calculation set out in that Schedule.

This line automatically calculates the amount due to North Somerset based on the authority’s data entry in Part 3.

Supplements and discounts

This calculation follows the policy that was announced in the reset policy paper to address the new business rates multipliers in the BRR system from 2026-27.

Line 38: Reduced revenues from RHL multipliers

Information Cell. Authorities are not required to enter data

This shows the cost of reduction in revenues as a result of the two new RHL multipliers, it is calculated from the value in Part 2 line 4.a.

Line 39: Additional revenues from High Value multipliers

Information Cell. Authorities are not required to enter data

This line shows the additional revenues collected as a result of the new high value multiplier, it is calculated from the value in Part 2 line 4.b.

Lines 40 & 41: Under and Over-indexation – not in use

Information Cell. Authorities are not required to enter data

Lines 40 and 41 are not in use in 2026-27

Line 42: Amount of Section 31 grant due to authorities to compensate for reliefs

Information Cell. Authorities are not required to enter data

Line 42 shows the total of lines 23 – 41. The value of line 42 is “capped” at zero, and the amount of section 31 cannot be a negative number. Where the value in line 42 would fall below zero, any additional claw back of additional revenues collected in respect of High Value multiplier is not included in this calculation and instead of being clawed back, it will flow through the Collection Fund.

To calculate the total amount of S.31 grant payable “on account”:

Major precepting authorities will need to add the relevant line 42 number to the line 42 numbers shown in the NNDR1s of all their other billing authorities;

Line 42a: Total Section 31 due for reliefs and RHL multipliers

Information Cell. Authorities are not required to enter data

This line shows the element of Line 42 that is made up of compensation for reliefs and the two RHL multipliers. It shows the total of lines 23 – 41.

Line 42b: Total additional revenues from High Value Multiplier

Information Cell. Authorities are not required to enter data

This line shows the element of additional revenues which will be clawed back as a result of the new high value multiplier. Where line 42 would fall below zero, this line will not be greater than the value in line 42a. Any amount that would otherwise be shown in this line will instead be shown in line 42c. The total of lines 42b and 42c is the total additional revenues from High Value Multiplier.

Line 42c: Additional revenues from High Value Multiplier outside of Section 31 grant Information Cell. Authorities are not required to enter data

This line shows the element of Line 42 which reflects additional revenues from High Value multiplier outside of Section 31 grant. Where the additional revenues from High Value Multiplier would exceed the value in line 42a, this additional amount is shown in line 42c. The total of lines 42b and 42c is the total additional revenues from High Value Multiplier.

Part 2: Net Rates Payable

1. Part 2 comprises the bulk of the NNDR1 return. It provides for the estimate of business rates payable by ratepayers in 2026-27 (the “net rates payable”). It requires information from authorities on their gross rates payable, their reliefs and the effect of the transitional arrangements.

2. Part 2 automatically “greys-out” cells which are not needed by an authority, for example, because it does not have any designated areas. By selecting your authority’s name from the drop-down menu at the start of Part 1 and 2, you will be provided with only those data cells, information cells and pre-filled cells that are relevant to you.

Note F: Gross Rates Payable (lines 1 – 4)

Lines 1 – 4 set out the authority’s gross rates payable – in other words, the estimated amount that would be payable by ratepayers in the absence of transitional arrangements and any reliefs. It forms the starting point for the calculation of authorities’ net rates payable, which itself is one step in the calculation of non-domestic rating income for the purposes of the rates retention scheme.

Line 1: Rateable Value

Data Cell. Authorities are not required to enter data (enter a positive no.)

Line 1, calculates the authority’s total rateable value based on their local rating list. This should be a rateable value extracted on any rateable day between December 2025 and January 2026. For information purposes, the date should be entered in the box provided.

This calculation is based on the data entered by authorities in lines 1.a to 1.e, showing the total value of these lines.

Where appropriate, separate figures are shown in respect of designated areas and the rest of the billing authority’s area.

Line 1.a:  Small multiplier for 2026-27

Data Cell. Authorities may choose to enter data

In line 1.a, authorities should enter the total rateable value of hereditaments using the small business rating multiplier in their local rating list.

The first column of this row is pre-filled by MHCLG with the small business rating multiplier for the year. Where appropriate, separate figures should be shown in respect of designated areas (Column 2) and the rest of the billing authority’s area (Column 1).

Line 1.b: Standard multiplier for 2026-27

Data Cell. Authorities may choose to enter data

In line 1.b, authorities should enter the total rateable value of hereditaments using the standard business rates multiplier in their local rating list.

The first column of this row is pre-filled by MHCLG with the standard business rating multiplier for the year. Where appropriate, separate figures should be shown in respect of designated areas (Column 2) and the rest of the billing authority’s area (Column 1).

Line 1.c: Small RHL multiplier for 2026-27

Data Cell. Authorities may choose to enter data

In line 1.c, authorities should enter the total rateable value of hereditaments using the small RHL business rating multiplier in their local rating list.

The first column of this row is pre-filled by MHCLG with the small RHL business rating multiplier for the year. Where appropriate, separate figures should be shown in respect of designated areas (Column 2) and the rest of the billing authority’s area (Column 1).

Line 1.d: Standard RHL multiplier for 2026-27

Data Cell. Authorities may choose to enter data

In line 1.d, authorities should enter the total rateable value of hereditaments using the standard business rating multiplier in their local rating list.

The first column of this row is pre-filled by MHCLG with the standard RHL business rating multiplier for the year. Where appropriate, separate figures should be shown in respect of designated areas (Column 2) and the rest of the billing authority’s area (Column 1).

Line 1.e: High Value multiplier for 2026-27

Data Cell. Authorities may choose to enter data

In line 1.e, authorities should enter the total rateable value of hereditaments using the High Value business rating multiplier in their local rating list.

The first column of this row is pre-filled by MHCLG with the high value business rating multiplier for the year. Where appropriate, separate figures should be shown in respect of designated areas (Column 2) and the rest of the billing authority’s area (Column 1).

Line 2: Gross rates 2026-27 (RV x multiplier)

Information Cell. Authorities are not required to enter data

Line 2 provides the authority’s gross rates payable based on the rating list information supplied in line 1 and the relevant multiplier. It is automatically calculated from lines 1.a to 1.e.

The calculation is:

Line 1.a Column 1 + Column 2 x the relevant multiplier
+
Line 1.b Column 1 + Column 2 x the relevant multiplier
+
Line 1.c Column 1 + Column 2 x the relevant multiplier
+
Line 1.d Column 1 + Column 2 x the relevant multiplier
+
Line 1.e Column 1 + Column 2 x the relevant multiplier

Line 3: Estimated growth/decline in gross rates

Data Cell. Authorities may choose to enter data

Line 3 provides the authority’s gross rates payable based on its rating list supplied in line 1. lines 3.a to 3.e allow this sum to be adjusted to reflect local intelligence about how the list (and rates income) may change throughout the course of the year. line 3 shows the total adjustment to gross rates based on the entries in lines 3.a to 3.e.

The calculation is:

Line 3.a Column 1 + Column 2 x the relevant multiplier
+
Line 3.b Column 1 + Column 2 x the relevant multiplier
+
Line 3.c Column 1 + Column 2 x the relevant multiplier
+
Line 3.d Column 1 + Column 2 x the relevant multiplier
+
Line 3.e Column 1 + Column 2 x the relevant multiplier

Where appropriate, separate figures are shown in respect of designated areas and the rest of the billing authority’s area.

Line 3.a: Small multiplier for 2026-27

Data Cell. Authorities may choose to enter data

In line 3.a, authorities can enter either positive or negative numbers to increase or reduce their estimate of rateable value for hereditaments using the small business rates multiplier, based on their view of increases or reductions in rateable value over the course of the year. NB: Authorities should not include forecast changes in net rates (such as from changes in reliefs) which are captured further down part 2 of the form.

Where appropriate, separate figures should be shown in respect of designated areas (Column 2) and the rest of the billing authority’s area (Column 1).

Line 3.b: Standard multiplier for 2026-27

Data Cell. Authorities may choose to enter data

In line 3.b, authorities can enter either positive or negative numbers to increase or reduce their estimate of rateable value for hereditaments using the standard business rates multiplier, based on their view of increases or reductions in rateable value over the course of the year. NB: Authorities should not include forecast changes in net rates (such as from changes in reliefs) which are captured further down part 2 of the form.

Where appropriate, separate figures should be shown in respect of designated areas (Column 2) and the rest of the billing authority’s area (Column 1).

Line 3.c: Small RHL multiplier for 2026-27

Data Cell. Authorities may choose to enter data

In line 3.c, authorities can enter either positive or negative numbers to increase or reduce their estimate of rateable value for hereditaments using the small RHL business rates multiplier, based on their view of increases or reductions in rateable value over the course of the year. NB: Authorities should not include forecast changes in net rates (such as from changes in reliefs) which are captured further down part 2 of the form.

The first column of this row is pre-filled by MHCLG with the small business rating multiplier for the year. Where appropriate, separate figures should be shown in respect of designated areas (Column 2) and the rest of the billing authority’s area (Column 1).

Line 3.d: Standard RHL multiplier for 2026-27

Data Cell. Authorities may choose to enter data

In line 3.d, authorities can enter either positive or negative numbers to increase or reduce their estimate of rateable value for hereditaments using the standard RHL business rates multiplier, based on their view of increases or reductions in rateable value over the course of the year. NB: Authorities should not include forecast changes in net rates (such as from changes in reliefs) which are captured further down part 2 of the form.

The first column of this row is pre-filled by MHCLG with the small business rating multiplier for the year. Where appropriate, separate figures should be shown in respect of designated areas (Column 2) and the rest of the billing authority’s area (Column 1).

Line 3.e: High Value multiplier for 2026-27

Data Cell. Authorities may choose to enter data

In line 3.e, authorities can enter either positive or negative numbers to increase or reduce their estimate of rateable value for hereditaments using the higher value business rates multiplier, based on their view of increases or reductions in rateable value over the course of the year. NB: Authorities should not include forecast changes in net rates (such as from changes in reliefs) which are captured further down part 2 of the form.

The first column of this row is pre-filled by MHCLG with the small business rating multiplier for the year. Where appropriate, separate figures should be shown in respect of designated areas (Column 2) and the rest of the billing authority’s area (Column 1).

Line 4: Forecast gross rates payable in 2026-27

Information Cell. Authorities are not required to enter data

Line 4 automatically sums lines 2 and 3 to give the forecast gross rates payable for the year in respect of designated areas (where appropriate) and the rest of the billing authority’s area. 

Line 4.a: Reduced revenue due to RHL multipliers

Information Cell. Authorities are not required to enter data

Line 4.a calculates the reduction in revenue as a result of a hereditament being on the small or standard RHL multiplier, rather than on the small or standard multipliers.

It is calculated as

(RV x a – RV x b) + (RV x c – RV x d)

Where

RV is the ratable value of all hereditaments on the reduced multipliers

a is the value of the small RHL multiplier

b is the value of the small multiplier

c is the value of the standard RHL multiplier

d is the value of the standard multiplier

Line 4.b: Additional revenue due to High Value multiplier

Information Cell. Authorities are not required to enter data

Line 4.a calculates the reduction in revenue as a result of a hereditament being on the High Value multiplier, rather than on the standard multiplier.

It is calculated as

(RV x a – RV x b)

Where

RV is the ratable value of all hereditaments on the increased multipliers

a is the value of the High Value multiplier

b is the value of the standard multiplier

Line 4.c: Reduced revenue due to under-indexation

Information Cell. Authorities are not required to enter data

Not applicable in 2026-27. Calculation to be confirmed.

Line 4.d: Additional revenue due to over-indexation

Information Cell. Authorities are not required to enter data

Not applicable in 2026-27. Calculation to be confirmed.

Note G: Transitional Arrangements (Lines 5 – 10)

The transitional arrangements introduced in relation to the 2026 Revaluation mean that large upward changes to rate bills will be phased-in. As a result, in 2026-27 some ratepayers will pay bills that are smaller than they would have done if their liability (before reliefs) was based solely on their Rateable Value. Unless no bills are being phased-in, the transitional arrangements will have the effect of reducing their gross rates payable.

Transitional Relief Supplement, a 1p supplement to the relevant tax rate for ratepayers who do not receive Transitional Relief or the Supporting Small Business scheme to partially fund Transitional Relief. This will apply for one year from 1 April 2026.

Lines 5-10 make adjustments to gross rates payable to reflect the transitional arrangements. 

The cost of the transitional arrangements should be found before taking into account any other reliefs apart from Improvement Relief (IR). To accommodate Improvement relief the TR regs will now, where relevant, refer to “A” being either the RV in the list or, where IR applies, the RV – G (G being the VO certificate for IR).

Transitional Arrangements

Line 5: Revenue foregone because increases in rates have been deferred

Data Cell. Authorities need to enter data

Authorities are required to enter their best estimate of the total by which the chargeable amounts due from all ratepayers for each day of 2026-27 will be reduced as a result of the transitional relief scheme which the government intends to implement via the Non-Domestic Rating (Chargeable Amounts) (England) Regulations 2025, which are subject to Parliamentary approval. Further information on these regulations can be found here.

Transitional Relief should be applied after Transitional Relief Supplement on all defined hereditaments (even if it is offset by Transitional Relief) at gross value. The value of Transitional Relief should be calculated against the bill including TRS.

Where applicable, authorities are required to show separate figures for the reduction in their Designated Areas and the rest of the billing authority’s area – i.e. authorities should enter data in columns 1 – 2.  These figures will be automatically summed at column 3.   

In calculating the numbers, authorities should exclude empty property relief or other reliefs to which a ratepayer might be entitled. They should also exclude any contribution made by ratepayers to the cost of the small business rates relief scheme by those who are not eligible for small business rate relief (this is accounted for in line 11).  

Line 6: Transitional Relief Supplement

Data Cell. Authorities need to enter data

Authorities are required to enter their best estimate of the total by which the chargeable amounts due from all ratepayers for each day of 2026-27 will be increased by the supplement. This should be calculated before the value of any Transitional Relief. This should be reported as the full amount of supplement even if the supplement is subsequently entirely offset by the transitional relief. This supplement is contained within the same regulations as the transitional relief scheme which the government intends to implement via the Non-Domestic Rating (Chargeable Amounts) (England) Regulations 2025, which are subject to Parliamentary approval. Further information on these regulations can be found here.

Where applicable, authorities are required to show separate figures for the amount in their Designated Areas and the rest of the billing authority’s area – i.e. authorities should enter data in columns 1 – 2.  These figures will be automatically summed at column 3.   

In calculating the numbers, authorities should exclude empty property relief or other reliefs to which a ratepayer might be entitled. They should also exclude any contribution made by ratepayers to the cost of the small business rates relief scheme by those who are not eligible for small business rate relief (this is accounted for in line 11).  

Line 7: Net cost of transitional arrangements

Information Cell. Authorities are not required to enter data

Line 8: Changes as a result of estimated growth / decline in cost of transitional arrangements

Data Cell. Authorities need to enter data

Line 7 provides the net cost of the transitional arrangements based on the current rating list.  Line 8 allows this sum to be adjusted to reflect local intelligence about how the net cost of the transitional arrangements might change as a result of changes to the rating list throughout the course of 2026-27. 

Authorities can enter either a positive or negative number in line 8 to reduce or increase their estimate of the cost of the transitional arrangements, based on their view of increases or reductions in rateable value over the course of the year. For example, if you expect a compiled list appeal on a property in transition to reduce the rateable value then this will, in turn, reduce the amount of transitional relief received on the property.

Line 9: Forecast net cost of transitional arrangements

Information Cell. Authorities are not required to enter data

Line 9 automatically sums lines 7 and 8 to give the forecast net cost of the transitional arrangements for the year in respect of Designated Areas and the rest of the billing authority’s area. 

Line 10: Sum due to/(from) authority

Information Cell. Authorities are not required to enter data

Line 10 automatically sums lines 9 and inverts the signage of it, to give the sum due to or from the authority for transitional arrangements for the year in respect of Designated Areas and the rest of the billing authority’s area. 

If there is a net cost to the authority because of the transitional payments – i.e. if line 9 is a negative figure – then line 10 will be positive and that sum is owed to the authority by central government.  The total figure in column 3, in this case will automatically be transferred to Part 1A of the form.

Note H: Mandatory Reliefs (lines 11 – 20)

An authority’s gross rates payable will be reduced by the mandatory reliefs that are granted to eligible ratepayers in accordance with the Local Government Finance Act 1988 (as amended). Lines 11 – 20 provide for authorities’ estimate of the amount of mandatory relief they will give in 2026-27.

Transitional arrangements, section 44A of the 1988 Act (partly occupied properties) and Improvement relief should be accounted for before the cost of other mandatory reliefs are calculated. After taking account of any Improvement relief, only one other mandatory relief can apply to a property at any one time.

Mandatory Reliefs: Small Business Rate Relief

Line 11: Forecast of relief to be provided in 2026-27

Data Cell. Authorities need to enter data (enter a negative no.)

At line 11, authorities need to enter their estimate of the total cost of small business rate relief to be awarded to all properties in 2026-27, based on the rating list used to complete this form. For each property, this is the difference between the chargeable amount for the hereditament found by multiplying its RV by the small business multiplier and the chargeable amount for that property after applying the relief due to qualifying properties in accordance with the Non-Domestic Rating (Small Business Rate Relief) (England) Order 2012 (SI 2012/148), (as amended).

The estimate should take account of any reduction in rateable values under section 44A of the 1988 Act (partly occupied properties).

Where appropriate, authorities are required to enter separate figures for designated areas and the rest of the billing authority’s area. These should be entered in columns 1 and 2.

Line 11a: Relief on existing properties where a 2nd property is occupied

Data Cell. Authorities need to enter data (enter a negative no.)

At line 11a, authorities are required to show how much (if any) of the small business rate relief they estimate will be given to occupiers who, during the year, would have ceased to be eligible for small business rate relief, by virtue of occupying any additional property had it not been for the Non-Domestic Rating (Small Business Rates Relief) (England) (Amendment) Order 2014 (SI 2014/43) entitling them to keep the small business rate relief on their first property for a period of 36 months.

Line 12: Charitable occupation

Data Cell. Authorities need to enter data (enter a positive no.)

Authorities need to enter their estimate of the reduction in the total chargeable amount due in 2026-27 as a result of applying 80% mandatory relief to hereditaments occupied by charities, in accordance with schedule 4ZA of NDR Act 2023. 

The estimate, based on the rating list used to complete this form, should take account of any reduction in rateable values under section 44A of the 1988 Act (partly occupied properties).

Where appropriate, authorities are required to enter separate figures for charitable occupation in respect of designated areas and the rest of the billing authority’s area. These should be entered in columns 1 and 2.

Line 13: Community Amateur Sports Clubs (CASCs)

Data Cell. Authorities need to enter data (enter a negative no.)

Authorities need to enter their estimate of the reduction in the total chargeable amount due in 2026-27 as a result of result of applying 80% mandatory relief to hereditaments occupied by Community Amateur Sports Clubs (CASCs), in accordance with schedule 4ZA of NDR Act 2023.

The estimate, based on the rating list used to complete this form, should take account of any reduction in rateable values under schedule 4ZA of NDR Act 2023.

Where applicable, authorities are required to enter separate figures for CASC relief in respect of designated areas and the rest of the billing authority’s area. These should be entered in columns 1 and 2.

Line 14: Rural Rate Relief

Data Cell. Authorities need to enter data (enter a negative no.)

Authorities need to enter their estimate of the reduction in the total chargeable amount due in 2026-27 as a result of applying 100% mandatory relief to rural general stores, post offices, public houses, petrol-filling stations and food shops, in accordance with section 43(6A) of the Local Government Finance Act 1988.

The estimate, based on the rating list used to complete this form, should take account of any reduction in rateable values under section 44A of the 1988 Act (partly occupied properties).

Where applicable, authorities are required to enter separate figures for rural rate relief in respect of designated areas and the rest of the billing authority’s area. These should be entered in columns 1 and 2.

Line 15: Public Lavatories Relief

Data Cell. Authorities need to enter data

At line 15 authorities should show the cost of any Public Lavatories relief they intend to award in line with the Non-Domestic Rating (Public Lavatories) Act 2021, for which they expect to be reimbursed through S.31 grant.

Where appropriate, separate figures are required for qualifying relief given to eligible Public Lavatories, in designated areas and the rest of the billing authority’s area. These should be entered in columns 1 and 2.

Line 16: Low-carbon heat networks relief

Data Cell. Authorities need to enter data

At Spring Statement 2022 it was announced that low-carbon heat networks would be eligible for 100% relief for eligible low-carbon heat networks that have their own rates bill in 2026-27. Authorities should have regard to the guidance when determining eligibility for the low-cost heat network discount, which can be found here. 

At line 16 authorities should enter the estimated cost of any low-carbon heat networks discount awarded in accordance with the guidance, for which they expect to be reimbursed through S.31 grant. 

Where appropriate, separate figures are required for qualifying relief given to eligible networks, in designated areas and the rest of the authority’s area. These should be entered in columns 1 and 2.

Line 17: Improvement relief

Data Cell. Authorities need to enter data

The NDR Act 2023 introduced Improvement relief to provide a discount off bills where certain improvements are made to rateable properties. Authorities should have regard to the guidance when determining eligibility for the improvement discount. Further information and guidance about the relief will be published here.

At line 17 authorities should enter the cost of Improvement relief awarded in accordance with the guidance, for which they expect to be reimbursed through S.31 grant.

Where appropriate, separate figures are required for qualifying relief given to eligible hereditaments, in designated areas and the rest of the authority’s area. These should be entered in columns 1 and 2.

Line 18: Forecast of mandatory reliefs to be provided in 2026-27

Information Cell. Authorities are not required to enter data

Line 18 sets out the total amount of mandatory relief that the authority anticipates giving in 2026-27. It is automatically calculated from the data entered in lines 11-17. The calculation is the sum of lines 11-17. These are provided in columns 1 and 2.

Line 19: Changes as a result of estimated growth/decline in mandatory relief

Data Cell. Authorities may choose to enter data

Line 18 provides the total cost of mandatory relief, based on the rating list used to complete this form. Line 19 allows this sum to be adjusted to reflect local intelligence about how this cost might change, whether because of changes to the rating list throughout the course of 2026-27, or because of changes to the occupation of property.

Authorities can enter either a negative, or positive number in line 19 to increase, or reduce their estimate of mandatory relief, based on their view of increases or reductions i.e. due to a change in occupation of the property over the course of the year.

Separate adjustments can be made to the figures for designated areas and the rest of the billing authority’s area. These can be entered in the adjustment cells in columns 1 and 2.

Line 20: Total forecast mandatory reliefs to be provided in 2026-27

Information Cell. Authorities are not required to enter data

Line 20 automatically sums lines 18 and 19 to give the total forecast of mandatory relief to be provided for the year in respect of designated areas and the rest of the billing authority’s area. These are provided in columns 1 and 2.

Note I: Unoccupied Property (Lines 21 – 25)

Rates are only payable by owners of unoccupied property in the circumstances set out in section 45 of the Local Government Finance Act 1988 and the Non-Domestic Rating (Unoccupied Property) (England) Regulations 2008 (SI 2008/386). The sum payable is zero in the circumstances set out in section 45A of the Act. The rates revenue foregone because property is unoccupied will reduce the authority’s gross rates payable. Lines 21 – 25 provide for the authority to estimate the sums foregone on unoccupied properties.

The rates forgone on partly empty property (section 4ZB) should be calculated after taking account of the transitional arrangements but before any other reliefs.

Line 21: Partially occupied hereditaments

Data Cell. Authorities need to enter data (enter a negative no.)

Authorities need to enter their estimate of the reduction in the chargeable amount due in 2026-27 as a result of the rateable value of a hereditament being apportioned between its occupied and unoccupied parts under S.44A of the Local Government Finance Act 1988.

The estimate, based on the rating list used to complete this form, should be calculated after taking account of transitional relief.

Where appropriate, separate figures are required in respect of designated areas and the rest of the billing authority’s area. These should be entered in columns 1 and 2.

Line 22: Empty premises

Data Cell. Authorities need to enter data (enter a negative no.)

Authorities should enter their estimate of the reduction in the total chargeable amounts due from ratepayers in 2026-27 as a result of premises being unoccupied and, therefore, not being liable for business rates for a period, in accordance with the Non-Domestic Rating (Unoccupied Property) (England) Regulations 2008 (SI 2008/386). The threshold below which rates will not be payable on unoccupied hereditaments in 2026-27 is £2,900.

Where appropriate, separate figures are required in respect of designated areas and the rest of the billing authority’s area. These should be entered in columns 1 and 2.

Line 23: Forecast of unoccupied property ‘relief’ to be provided in 2026-27

Information Cell. Authorities are not required to enter data

Line 23 sets out the total amount of unoccupied property rates that the authority anticipates foregoing in 2026-27. It is automatically calculated from the data entered in lines 21 and 22 These are provided in columns 1 and 2.

Line 24: Changes as a result of estimated growth/decline in unoccupied property ‘relief’

Data Cell. Authorities may choose to enter data

Line 23 provides the total sum foregone in respect of unoccupied properties, based on the rating list used to complete this form. Line 24 allows this sum to be adjusted to reflect local intelligence about how this cost might change, whether as a result of changes to the rating list throughout the course of 2026-27, or because of changes to the occupation of property.

Authorities can enter either a negative, or positive number in line 24 to increase, or reduce their estimate based on their view of increases or reductions in rateable value over the course of the year or as a result of changes in occupancy.

Separate adjustments can be made to the figures for designated areas and the rest of the billing authority’s area. These can be entered in the adjustment cells in columns 1 and 2.

Line 25: Total forecast unoccupied property ‘relief’ to be provided in 2026-27

Information Cell. Authorities are not required to enter data

Line 25 automatically sums lines 23 and 24 to give the total forecast of rates foregone on unoccupied property for the year in respect of designated areas and the rest of the billing authority’s area. These are provided in columns 1 and 2.

Note J: Discretionary Relief Funded Through S.31 Grant (lines 26 – 34)

An authority’s gross rates payable will be further reduced by the discretionary relief it gives to ratepayers in accordance with S.47 of the Local Government Finance Act 1988, in respect of those measures announced at Autumn Statements and/or Budgets for which authorities will be compensated through S.31 grant. Lines 26 – 34 provide for authorities’ estimate of the discretionary relief they will give.

Rating law does not distinguish between different types of discretionary relief but for the purposes of collecting this information, authorities should assume that where more than one type of discretionary relief applies, then the reliefs are measured in the order as set out in note L.

Further to this, and for the purposes of other discretionary reliefs funded by S.31 grant, authorities should refer to the guidance issued by the Department here.

Line 26: Supporting Small Business Scheme

Data Cell. Authorities need to enter data

At the Autumn Statement 2025, the continuation of relief to support Small Businesses was announced. This relief was to be made available to those ratepayers losing small business or rural rate relief due to the revaluation. Further details and guidance on the granting of relief can be found.

At line 26 authorities should enter the estimated cost of any Supporting Small Businesses relief awarded in accordance with the guidance, for which they expect to be reimbursed through S.31 grant. Further information and guidance about the relief is published here.

Where appropriate, separate figures are required for qualifying Supporting Small Businesses relief given in designated areas and the rest of the billing authority’s area. These should be entered in columns 1 and 2.

Line 27: Film Studio relief

Data Cell. Authorities need to enter data

At Spring budget 2024 it was announced that a relief for film studios would be introduced to support the creative industries. The guidance for this relief is published here.

At line 27 authorities should enter the cost of any Film Studio relief they expect to award in 2026-27, for which they expect to be reimbursed through S.31 grant.

Where appropriate, separate figures are required for qualifying relief given to eligible hereditaments, in designated areas and the rest of the authority’s area. These should be entered in columns 1 and 2.

Note K: Freeports and Investment Zone Relief

At previous fiscal events it was announced that eight Freeports would be created across the country and that new Investment Zones would be introduced across the country. 

Within Freeports local authorities are entitled to compensation for the relief that they give eligible business rates payers.  Compensation of 100% of the relief awarded is to be paid by means of a S.31 grant.

Investment Zone relief is awarded within the designated tax site for the Investment Zone. The boundaries of the designated tax site and the designated area for Business Rates Retention do not have to match exactly. Where the tax site does overlap with the business rates retention designated area, relief in respect of hereditaments in the tax site will be awarded at 100% of the value. Where the tax site does not overlap with the business rates retention designated area, relief in respect of hereditaments in the tax site will be awarded based on the local retention share of the authority. Compensation of the relief awarded is to be paid by means of a S.31 grant.

Line 28:  Relief given to Freeports

Data Cell. Authorities need to enter data (enter a negative no.)

In line 28, authorities with a Freeport will need to enter their estimates of the amount of discretionary relief that they will give to qualifying ratepayers for Freeport relief in 2026-27. Further to this authorities should refer to the guidance issued by the Department here.

The figure that authorities enter in line 28 should be the total amount of reimbursable discretionary relief authorities anticipate actually awarding to businesses. The amount of qualifying relief for which authorities will be compensated is 100% of that relief and is automatically calculated in Part 1C of the form. These should be entered in column 2.

Line 29: Relief given to Investment Zones

Data Cell. Authorities need to enter data (enter a negative no.)

In line 29, authorities with an Investment Zone will need to enter their estimates of the amount of discretionary relief that they will give to qualifying ratepayers for Investment Zone relief in 2026-27. Further to this, authorities should refer to the guidance issued by the Department here.

The figure that authorities enter in line 29 should be the total amount of reimbursable discretionary relief authorities anticipate actually awarding to businesses.

Where the tax site does overlap with the business rates retention designated area, relief in respect of hereditaments in the tax site will be awarded at 100% of the value and values should be entered in column 2.

Where the tax site does not overlap with the business rates retention designated area, relief in respect of hereditaments in the tax site will be awarded based on the local retention share of the authority and values should be entered in column 1.

Line 30: Relief given to Case A hereditaments

Data Cell. Authorities need to enter data (enter a negative no.)

At line 30, those authorities with designated areas (in which authorities are entitled to be reimbursed for relief awarded to ratepayers) will need to enter their estimates of the amount of discretionary relief that they will give to “Case A” hereditaments in a designated area.

A “Case A” hereditament is situated in part of a designated area (for example, an Enterprise Zone) for which the billing authority is entitled to both retain the growth in business rates and be reimbursed for any discretionary relief they award.

The figure that authorities enter in line 30 should be the total amount of reimbursable discretionary relief authorities anticipate actually awarding to businesses. The amount of qualifying relief for which authorities will be compensated is 100% of that relief and is automatically calculated in Part 1C of the form. These should be entered in column 2.

Line 31: Forecast of discretionary reliefs funded through S31 grant to be provided in 2026-27

Information Cell. Authorities are not required to enter data

Line 32: Changes as a result of estimated growth/decline in Section 31 discretionary relief

Data Cell. Authorities may choose to enter data

Line 31 provides the total sum foregone in respect of discretionary relief to be funded through S.31 grant, based on the rating list used to complete this form. Line 32 allows this sum to be adjusted to reflect local intelligence about how this cost might change, as a result of changes to the ratings list, occupation of properties or decisions of the authority.

Authorities can enter either a negative, or positive number in line 32 to increase, or reduce their estimate of the discretionary relief for which they expect to be compensated through S.31 grant.

Separate adjustments can be made to the figures for designated areas and the rest of the billing authority’s area. These should be entered in columns 1 and 2.

Line 33: Total forecast of discretionary reliefs funded through S31 grant to be provided in 2026-27

Information Cell. Authorities are not required to enter data

Line 33 automatically sums lines 31 and 32 to give the total forecast of funded discretionary relief to be provided for the year in respect of designated areas and the rest of the billing authority’s area. These are provided in columns 1 and 2.

Line 34: Total forecast of reliefs funded through S31 grant to be provided in 2026-27

Information Cell. Authorities are not required to enter data

This line automatically sums lines 20, 25 and 33 to give the total forecast of reliefs eligible for compensation via S.31 grant to be provided for the year in respect of designated areas and the rest of the billing authority’s area. These are provided in columns 1 and 2.

Note L: Discretionary Reliefs (lines 35 – 39)

An authority’s gross rates payable will be reduced by the discretionary relief it gives to ratepayers in accordance with Section 47 and reductions or remissions given in accordance with Section 49 of the Local Government Finance Act 1988. Lines 25 – 36 provide for authorities’ estimate of the amount of discretionary relief they will give in 2026-27, excluding discretionary relief that will be given in respect of Autumn Statement or Budget measures, which will be compensated through S.31 grant.

Discretionary relief should usually be measured after reflecting transitional relief. Rating law does not distinguish between different types of discretionary relief but for the purposes of collecting this information authorities should assume that where more than one type of discretionary relief applies then the reliefs are measured in the following order:

1. Supporting Small Businesses (SSB)
2. Former categories of discretionary relief available prior to the Localism Act 2011 (i.e. charitable/CASC. top up and not for profit)
3. Other centrally funded discretionary relief, including Case A, Freeport relief and IZ relief
4. Other locally funded schemes (such as hardship)

Further information and updates about reliefs is published here.

The reliefs described at point 3 above, which are funded through S.31 grant, should not be included in lines 35 – 39. Instead, amounts of relief estimated to be given should be entered in lines 26 – 30 above (see Note J).

Line 35: Charitable occupation

Data Cell. Authorities need to enter data (enter a negative no.)

Authorities should enter their estimate of the total discretionary relief they anticipate giving to charities in 2026-27, under S.47 of the Local Government Finance Act 1988. This is the amount of additional relief given to ratepayers in receipt of mandatory relief under 4ZA of the NDR Act 2023.

Where appropriate, separate figures are required for the total discretionary relief in respect of designated areas and the rest of the billing authority’s area. These should be entered in columns 1 and 2.

Line 36: Non-profit making bodies

Data Cell. Authorities need to enter data (enter a negative no.)

Authorities should enter their estimate of the total discretionary relief they anticipate giving to non-profit making bodies in 2026-27, under S.47 of the Local Government Finance Act 1988.

Where appropriate, separate figures are required for discretionary relief to non-profit making bodies in designated areas and the rest of the billing authority’s area. These should be entered in columns 1 and 2.

Line 37: Community Amateur Sports Clubs (CASCs)

Data Cell. Authorities need to enter data (enter a negative no.)

Authorities should enter their estimate of the total discretionary relief they anticipate giving to Community Amateur Sports Clubs (CASCs) in 2026-27, under S.47 of the Local Government Finance Act 1988. This is the amount of additional relief given to ratepayers in receipt of mandatory relief under 4ZA of the NDR Act 2023.

Where appropriate, separate figures are required for the total discretionary relief to (CASCs) in designated areas and the rest of the billing authority’s area. These should be entered in columns 1 and 2.

Line 38: Small Business Rural Relief

Data Cell. Authorities need to enter data (enter a negative no.)

Authorities should enter their estimate of the total discretionary relief they anticipate giving to other businesses within rural settlements identified on the authority’s rural settlement list that are not in receipt of mandatory rural rate relief.

Where appropriate, separate figures are required for the total discretionary relief to other rural businesses in designated areas and the rest of the billing authority’s area. These should be entered in columns 1 and 2.

Line 39: Other ratepayers - Forecast of relief to be provided in 2026-27

Data Cell. Authorities need to enter data (enter a negative no.)

As a result of changes introduced by the Localism Act 2011, authorities are now entitled to give discretionary relief under S.47 of the Local Government Act 1988, to any ratepayer.

Lines 35 – 38 separately identify the relief they anticipate giving in 2026-27 to charities, non-profit making bodies, CASCs and rural businesses (in other words, those bodies formerly eligible for discretionary relief).

In line 39, authorities should enter their estimate of the total amount of any other discretionary relief they anticipate giving in 2026-27, under S.47 of the Local Government Finance Act 1988, to ratepayers other than in respect of Autumn Statement and Budget measures reimbursed by S.31 grant.

Billing Authorities should include reliefs awarded under s.47 where a Mayoral Development Corporation (MDC) has assumed functions under section 47(3) and (6) of the 1988 Act, as modified by section 214(9) of the 2011 Localism Act.

Where appropriate, separate figures are required in respect of designated areas and the rest of the billing authority’s area. These should be entered in columns 1 and 2.

Line 40: Forecast of discretionary relief to be provided in 2026-27

Information Cell. Authorities are not required to enter data

Line 40 sets out the total amount of discretionary relief including relief granted in designated areas, that the authority anticipates giving in 2026-27.

It is automatically calculated from the data entries made by authorities in lines 33 – 39. The calculation is the sum of those lines for each of the designated areas and the rest of the authority’s area. These are provided in columns 1 and 2.

Line 41: Changes as a result of estimated growth/decline in discretionary relief

Data Cell. Authorities may choose to enter data

Line 40 provides the total sum foregone in respect of discretionary relief, based on the rating list used to complete this form. Line 41 allows this sum to be adjusted to reflect local intelligence about how this cost might change, as a result of decisions of the authority.

Authorities can enter either a negative, or positive number in line 41 to increase, or reduce their estimate of discretionary “relief”.

Separate adjustments can be made to the figures for designated areas and the rest of the billing authority’s area. These can be entered in the adjustment cells in columns 1 and 2.

Line 42: Total forecast discretionary relief to be provided in 2026-27

Information Cell. Authorities are not required to enter data

Line 42 automatically sums lines 40 and 41 to give the total forecast of discretionary relief to be provided for the year in respect of designated areas and the rest of the billing authority’s area. These are provided in columns 1 and 2.

Line 43: Net rates payable

Information Cell. Authorities are not required to enter data

Line 43 provides an estimate of the net rates payable by ratepayers for 2026-27 after taking account of transitional adjustments, empty property rate, mandatory and discretionary reliefs. It is automatically calculated from the data entries in Part 2.

The total of Columns 2 in Line 43 should equal the total in Column 1 of Part 3 DA Summary.

Part 3: Collectable Rates and Disregarded Amounts

Part 3 determines the billing authority’s estimated collectable rates – i.e. the net amount receivable by the authority from ratepayers after taking account of transitional adjustments, empty property rate, mandatory and discretionary reliefs and adjustments for bad debts, alteration of lists and appeals etc. It also calculates, where appropriate, the amounts that are to be subtracted from the collectable rates in respect of the “disregarded amounts” for Designated Areas, Renewable Energy Schemes and Shale Oil and Gas sites, in accordance with Schedule 1 to the Non-Domestic Rating (Rates Retention) Regulations 2013 (SI 2013/452) (as amended).

The 2026-27 NNDR1 includes a separate sheet for use by authorities with designated areas – “Part 3 DA Summary”.  The sheet should be used by those authorities to provide a breakdown of the figures for designated areas shown in column 2 of Part 3.  Guidance on the completion of “Part 3 DA Summary” is provided below. It also sets out the amounts to be deducted from the central share in respect of the Port of Bristol.  

Line 1: Net Rates Payable

Information Cell. Authorities are not required to enter data

Line 1 provides the billing authority’s net rates payable as a starting point for the calculation of its collectable rates.

The figures in Line 1 are automatically picked-up from the bottom of Part 2.

Line 2: Estimated bad debts in respect of 2026-27 rates payable

Data Cell. Authorities need to enter data (enter a negative no.)

Authorities should enter their estimate of how much of the net rates payable in respect of 2026-27 they would expect to have to write-off as bad debt during that, or subsequent years.

For authorities without designated areas, only column 1 needs to be completed.

For authorities with designated areas, separate figures are required for designated areas and the rest of the billing authority’s area. Authorities should enter a value for column 1. Column 2 will automatically be entered as the sum of the entries in column 2 of “Part 3 DA Summary”.  Columns 1 and 2 are automatically summed in column 3.

Line 3: Estimated repayments in respect of 2026-27 rates payable

Data Cell. Authorities need to enter data (enter a negative no.)

Authorities should enter their estimate of how much of the net rates payable in respect of 2026-27 liability they would expect to have to repay to ratepayers as a result of reductions in Rateable Values (RV), following successful appeals or alterations to lists, during that, or subsequent years.

Authorities should not include in their figures any estimate of the repayments they might have to make in respect of years before 2026-27. Authorities will have included a provision in previous year’s accounts in respect of such repayments and will need to adjust the provision in their 2025-26 accounts to reflect repayments made during the year and their view of any outstanding liabilities. Changes to provisions will therefore be made in the 2025-26 NNDR3 and, as a result, will be reflected in the estimated surplus/deficit on the Collection Fund, which authorities are expected to make in Part 4 of this form.

Local authorities should include in their estimate any interest that they ultimately expect to pay to ratepayers as a result of reductions in Rateable Values (RV), following successful appeals or alterations to lists, in respect of the 2026-27 liability period in accordance with the Non-domestic Rating (Payment of Interest) Regulations 1990 (SI 1990/1904).

For authorities without designated areas, only column 1 needs to be completed.

For authorities with designated areas, separate figures are required for designated areas and the rest of the billing authority’s area. Authorities should enter a value for column 1.  Column 2 will automatically be entered as the sum of the entries in column 3 of “Part 3 DA Summary”.  Columns 1 and 2 are automatically summed in column 3.

Line 4: Net Rates payable less losses (Collectable Rates)

Information Cell. Authorities are not required to enter data

Line 4 provides figures for the authority’s collectable business rates.

For authorities with designated areas, separate figures are provided for designated areas and the rest of the billing authority’s area. The figures are automatically calculated from lines 1 – 3. The calculation is line 1, plus lines 2 and 3. Columns 1 and 2 are automatically summed in column 3.

Line 5: Renewable Energy

Data Cell. Authorities need to enter data (enter a positive no.)

The figure that authorities enter in this line should be the value of the collectable rates in respect of renewable energy should be entered on the basis of the small and standard multipliers. This means that if any hereditaments on the small RHL, standard RHL or High Value multiplier are eligible from qualifying renewable energy schemes hereditaments, authorities should recalculate the value of the gross rates for these hereditaments and enter this recalculated value.

Line 5 provides for the deduction that needs to be made in respect of renewable energy schemes. Authorities should enter their estimate of the rates that will be collectable from qualifying renewable energy schemes, as defined in the Non-Domestic Rating (Renewable Energy Project) Regulations 2013 (as amended).

For 2026-27 the calculation should be:

Small Multiplier Net rates

Plus

Standard Multiplier Net Rates

Plus

Small RHL Multiplier Net Rates / Small RHL multiplier x small multiplier

Plus

Standard RHL Multiplier Net Rates / standard RHL multiplier x standard multiplier

Plus

High Value Multiplier Net Rates / High Value multiplier x standard multiplier

The estimate should be net of all reliefs including transitional relief.

For authorities without designated areas, only column 1 needs to be completed.

For authorities with designated areas, separate figures are required for designated areas and the rest of the billing authority’s area. Authorities should enter a value for column 1.  Column 2 will automatically be entered as the sum of the entries in column 5 of “Part 3 DA Summary”.  Columns 1 and 2 are automatically summed in column 3.

The figure in column 3 is carried forward to Part 1 of the form (see Part 1 line 11 [Amounts retained in respect of Renewable Energy Schemes]) to determine the billing authority’s non-domestic rating income under the rates retention scheme.

Line 6: Transitional Protection Payment

Information Cell. Authorities are not required to enter data.

Line 6 details the provisional transitional protection payments due to or from the authority in respect of its designated areas.

The figure is automatically picked-up from Part 3 DA Summary, column 6, which captures the aggregated value of transitional protection payments for each designated area in the authority.

Sums due to the authority in respect of designated areas need to be added to the collectable rates in that area to arrive at the figure that needs to be deducted from the authority’s overall collectable rates.

Sums due from the authority in respect of designated areas need to be deducted from the collectable rates in that area to arrive at the figure that needs to be deducted from the authority’s overall collectable rates.

Line 7: Baseline

Information Cell. Authorities are not required to enter data.

Billing authorities are allowed to keep any growth in business rates in designated areas.

Growth is measured against baselines calculated in accordance with  Schedule 2 to the Non-Domestic Rating (Designated Area) Regulations which have been introduced since 2013.

The figure in line 7 will automatically be entered as the sum of the entries in column 7 of “Part 3 DA Summary”. 

Line 8: Total Disregarded Amounts

Information Cell. Authorities are not required to enter data

Line 8 automatically calculates the deductions that are to be made in respect of designated areas.

For 2026-27, the figure in column 2 will automatically be entered as the sum of the entries in column 9 of “Part 3 DA Summary” and will be carried forward into column 3.

Line 9: Port of Bristol

Data Cell.      Authorities need to enter data

In line 19, column 1, North Somerset Council need to enter their estimate of the business rates income in respect of the Port of Bristol hereditament.

Column 3 automatically calculates the amount to be deducted from the central share.  It is the column 1 number, multiplied by 0.51, in accordance with the above regulations. 

Note M: For information - Designated Areas Section 31 grant retention as a result of growth

This new section is intended to set out for LAs the calculation of any S.31 eligible amount in Part 2 of the form that they retain at 100% in respect of growth in their designated areas. This is calculated by adding these S.31 grant amounts to the total income for the DAs, less the total baseline. Any element of S.31 grant that is then above this baseline amount is awarded at 100% in lieu of a disregarded amount that would have otherwise been retained by the billing authority. This follows confirmation of changes that were set out in the 2026 Reset delivery policy paper.

The S.31 eligible reliefs for these calculations are:

SBRR (using a set amount), Rural Servies (at 50%), Public Lavatories, Low-carbon heat networks, Improvement, Supporting Small Business Scheme and Film Studio.

Line a: Net rates payable less losses

Information Cell. Authorities are not required to enter data

This line brings through the equivalent value from Part 3 DA Summary Column 4.

Line b:  Renewable Energy schemes

Information Cell. Authorities are not required to enter data

This line brings through the equivalent value from Part 3 DA Summary Column 5.

Line c:  Transitional Protection Payment

Information Cell. Authorities are not required to enter data

This line brings through the equivalent value from Part 3 DA Summary Column 6.

Line d: Baseline

Information Cell. Authorities are not required to enter data

This line brings through the equivalent value from Part 3 DA Summary Column 7.

Line e:  Total Disregarded Amounts

Information Cell. Authorities are not required to enter data

This line calculates the position of the designated areas against their baselines. Where an LA’s designated areas are in growth in Part 3DA Summary, Column 8, this value will be brought through. Where an authority is not in growth in this column, the data pulled through in lines a to d will be used to calculate the position below the baseline that the authority’s designated areas are in for 2026-27.

The calculation is

a – b + c - d

Line f: Net value of Discounts and Supplement in Designated Areas

Information Cell. Authorities are not required to enter data

This line brings through the Net value of Discounts and Supplement in Designated Areas from lines 4a and 4b, column 2 in Part 2 of the form.

The value brought through is then calculated against the position in line e, to see if the total value of the income in the DAs including the Net value of Discounts and Supplement in Designated Areas would be above the baseline and by how much. The value in the Section 31 above baseline will then be paid at 100% in lieu of the disregarded amount that would otherwise have been retained by the billing authority.

Line g: Value of under- or over-indexation in Designated Areas

Information Cell. Authorities are not required to enter data

This line is not in used in 2026-27.

Line h: Value of S.31 reliefs in Designated Areas

Information Cell. Authorities are not required to enter data

This line brings through the value of eligible reliefs funded by S.31 grant from column 2 in Part 2 of the form.

The value brought through is then calculated against the position in line e, to see if the total value of the income in the DAs including the Net value of Discounts and Supplement in Designated Areas would be above the baseline and by how much. The value in the Section 31 above baseline will then be paid at 100% in leu of the disregarded amount that would otherwise have been retained by the billing authority.

The reliefs included in this amount are SBRR (using a set amount), Rural Servies (at 50%), Public Lavatories, Low-carbon heat networks, Improvement, Supporting Small Business Scheme and Film Studio.

Line i: Total additional retention in Designated Areas

Information Cell. Authorities are not required to enter data

This line shows the total values calculated in lines f to h above.

Part 3 DA Summary

In “Part 3DA Summary”, authorities with designated areas are required to provide a breakdown for the entries in lines 1 – 8 of Part 3 for each of their designated areas. 

“Part 3 DA Summary”, will automatically show all an authority’s designated areas when the authority’s name is selected from the dropdown menu at the start of Part 1 of the NNDR1.

Column 1 – Net Rates Payable

Authorities need to enter the net rates payable in each designated area.  The figures entered against column 1 are summed in the line “Total Designated Area Value” at the top of “Part 3DA Summary”.  Authorities must ensure that the sum of the entries for net rates payable is equal to the figure in the bottom of Part 2, columns 2.

Columns 2 and 3 - Losses

Authorities need to make entries in respect of each of their designated areas for estimated bad debts and estimated repayments following alteration of lists and successful appeals (including any interest liabilities), and alterations to the rating list, on the same basis as they make entries in Line 2, Column 2 [Estimated bad debts] and Line 3, Column 2 [Estimated Repayments] of Part 3 – see guidance notes on lines 2 and 3 of Part 3, above. 

The sum of the entries in columns 2 and 3 will automatically be shown, respectively, in the line “Total Designated Area Value” at the top of “Part 3DA Summary”.  The figures will be automatically taken forward into lines 2 and 3 of Part 3 (as explained in the notes to those lines).

Figures in columns 2 and 3 should be entered as negative numbers.

Column 4 – Net Rates Payable less Losses

The figures in column 4 show the collectable rates (net rates payable, less losses) in each designated area.  They are automatically calculated for each designated area.  The calculation is the sum of columns 1 – 3 for each designated area.  The figures for each designated area are summed in the line “Total Designated Area Value” at the top of “Part 3DA Summary”.  This figure should be equal to the figure in Part 3, line 4, column 2 [Net Rates payable less losses].

Column 5 - Renewable Energy

Authorities need to make entries in respect of the rates that will be collectable from qualifying renewable energy schemes.

The sum of the entries in column 5 will automatically be shown against the line “Total Designated Area Value” at the top of “Part 3 DA Summary”.  This figure will be automatically taken forward into Part 3, line 5, column 2 (as explained in the notes to those lines).

Amounts should be entered as positive figures.

Column 6 - Transitional Protection Payment 

Authorities need to make entries in respect of the transitional protection payments due to, or from, each designated area, reflecting for each area, the extent to which the transitional arrangements mean that the area is experiencing an aggregate loss or aggregate additional income as a result of the effect of the transitional arrangements on each hereditament.

The figures for each designated area are summed in the line “Total Designated Area Value” at the top of “Part 3 DA Summary”. This figure will be automatically taken forward into Part 3, line 6, column 2 [Transitional Protection Payment].

Amounts should be entered as positive figures where the transitional arrangements result in a net loss of income and a transitional protection payment is due from central government

Column 7 - Baseline

In accordance with Part 3 of Schedule 2 to a relevant year’s Non-Domestic Rating (Designated Areas) Regulations, baselines are uprated each year in line with the increase in the relevant business rating multipliers. In 2026-27 please enter the estimated baseline for 2026-27 after the revaluation. This should be a positive value. 

The calculation of a designated area’s uprated baseline in a revaluation year is set out in Part 3 of Schedule 2 to a relevant year’s Non-Domestic Rating (Designated Areas) Regulations.

For information only, the figures for each designated area are summed in the line “Total Designated Area Value” at the top of “Part 3 DA Summary”. This figure will automatically be taken forward into Part 3, line 7 column 2 [Baseline].

Column 8 - Total Disregarded Amounts

Column 8 will automatically calculate the amount to be disregarded for each designated area.  For each designated area the calculation is column 4 minus column 5, plus column 6, minus column 7.

NB. The calculated figure for each designated area cannot be less than zero. The formulae will set the cell to zero if the calculation produces a negative number.

The figures for each designated area are summed in the line “Total Designated Area Value” at the top of “Part 3 DA Summary”. This figure will automatically be taken forward into Part 3 line 8, column 2 [Total Disregarded Amounts ] (for information only).

Part 4: Estimated Collection Fund balance

Part 4 provides for the billing authority’s estimate of the surplus or deficit that will exist on its Collection Fund at the end of the 2025-26 financial year. The estimated surplus, or deficit, is to be shared between the billing authority, its major precepting authorities and central government. Lines 21 – 25 of Part 4 show how the estimated surplus/deficit is to be shared. 

Part 4: Calculation of the estimated surplus/deficit on the collection fund in respect of the financial year 2025-26, to be paid in 2026-27

Line 1a: Opening Balance (From Collection Fund Statement)

Information Cell: Authorities are not required to enter data

This cell is pre-populated.  It shows the opening balance on the Collection Fund at 1 April 2025 (which is the closing balance for 2024-25).

A surplus (credit) balance is shown as a positive number and deficit (debit) balance is shown as a negative number.

​The opening balance has been taken from the closing balance submitted by authorities in Part 5 of the 2024-25 NNDR3. 

Line 1b: Agreed adjustment to Collection Fund Opening Balance (in respect of brought forward discrepancies))

Data Cell. Authorities may choose to enter data

Because the submitted 2024-25 NNDR3s used to populate Line 1a may still be provisional, authorities may use this line to record any agreed adjustments to their Collection Fund Opening Balance. Where a local authority uses this line to adjust their opening balance, they should record an explanation in the validation sheet. ​

Line 1c: Adjusted Opening Balance

Information Cell: Authorities are not required to enter data

Line 1c is the total of Line 1a and Line 1b. This should be equal to the Opening Balance that authorities have the most up to date version of their 2024-25 NNDR3 form and accounts.

Line 2: Business rates credited and charged to the Collection Fund in 2025-26

Data Cell. Authorities need to enter data (enter a positive no.)

Authorities should enter the amount of business rates which has been, or it is anticipated will be, credited and charged to the Collection Fund in 2025-26, in accordance with proper accounting practice.

The figure should reflect any transitional, empty, mandatory or discretionary relief given. It should include all payments due from ratepayers, unless in accordance with proper practice, they were recognised in a previous financial year. Local authorities should also reflect the gross interest due on appeals, on an accrual basis.

Broadly speaking, the sum to be entered in line 2 is the same as that which authorities anticipate will be calculated as their “net rates payable” in Part 3 of their 2025-26 NNDR3.

(NB Authorities should not include S.31 grant income as part of this, or any other entry in Part 4.)

Line 3: Sums written off in excess of the allowance for non-collection

Data Cell. Authorities need to enter data (enter as a negative no.)

Authorities should enter the amount of any sum which has been, or it is anticipated will be, written off as bad debt during 2025-26, which will not be charged to the allowance for non-collection or otherwise reflected in a change to the authority’s allowance for non-collection.

The amount should be entered as a negative figure.

Broadly speaking, the sum to be entered in line 3 is the same as that which authorities anticipate entering in Part 2 of their NNDR3 for 2025-26.

Line 4: Changes to the allowance for non-collection

Data Cell. Authorities need to enter data (enter either a positive or negative no.)

Authorities should enter the amount of any change they anticipate making to their allowance for non-collection of non-domestic rates. This should reflect the difference between the allowance at 31 March 2026, compared to that at 31 March 2025, after reflecting the amounts charged to the allowance in 2025-26 and the authority’s view of the future risk of bad debt.

An authority should enter a negative figure in line 4 where it increases its non-collection allowance and a positive figure where it reduces the non-collection allowance.

Broadly speaking, the sum to be entered in line 4 is the same as that which authorities anticipate entering in Part 2 of their NNDR3 for 2025-26.

Line 5: Amounts charged against the provision for alteration of lists and appeals following RV list changes

Data Cell. Authorities need to enter data (enter a positive no.)

Authorities should enter the amount charged, or they anticipate will be charged, to the provision for alteration of lists and appeals during 2025-26. The amount will reflect changes made to ratepayers’ liability following alterations to the rating list as a result of appeals, and/or alterations to the rating list which have been previously provided for.

Authorities should also include here any estimate made of the amount of interest due as a result of alternations and appeals following RV list changes that will be charged, of estimated to be charged, against an existing provision for those interest costs at year end

The amount should be entered as a positive figure.

Broadly speaking, the sum entered in line 5 should be the same as that which authorities anticipate entering in Part 2 of their NNDR3 for 2025-26.

Line 6: Changes to the provision for alteration of lists and appeals

Data Cell. Authorities need to enter data (enter either a positive or negative no.)

Authorities should enter the amount of any change they anticipate making to their provision for alteration of lists and appeals, including (where relevant) any expected changes to provisions for related interest liabilities. This should reflect the difference between the provision at 31 March 2026, compared to that at 31 March 2025, after reflecting the amounts charged to the provision in 2025-26 (see line 5 above) and the authority’s view of the future risk of losses because of changes to the rating list.

An authority should enter a negative figure in line 6 where it increases its provision for appeals and a positive figure where it reduces its provision for appeals.

Broadly speaking the sum entered in line 6 should be the same as that which authorities anticipate entering in in Part 2 of their NNDR3 for 2025-26.

Line 7: Total business rates credits and charges

Information Cell. Authorities are not required to enter data

Line 7 provides the total business rates credits and charges to be taken into account in the calculation of collection fund surpluses and deficits.

It is automatically calculated from the entries in lines 2 to 6. The calculation is the sum of those lines.

Line 8: Transitional protection payments received, or to be received in 2024-25

Data Cell. Authorities need to enter data (enter a positive no.)

Authorities should enter the amount of the transitional protection payments received, or to be received in respect of 2025-26 in accordance with the Non-Domestic Rating (Transitional Protection Payments) Regulations 2022 (SI 2022/784).

This sum should reflect the authority’s estimate of the transitional protection payment that will be payable from central government to the billing authority, in respect of 2025-26 – in other words, it should anticipate the final outturn numbers that will be included in its 2025-26 NNDR3.

Line 9: Transfers/payments to the Collection Fund for end-year reconciliations

Data Cell. Authorities need to enter data (enter a positive no.)

Based on the estimates made in NNDR1s, sums that are to be excluded from the rates retention scheme – in respect of the allowance for the cost of collection, designated areas, renewable energy schemes or Shale Oil and Gas schemes – are transferred to the billing authority’s General Fund, or paid to its major precepting authorities, as appropriate. For the purposes of this calculation, the sums transferred or paid, in accordance with the 2025-26 NNDR1, are charged at line 16 below.

At the end of a financial year, following submission of the NNDR3s, these sums are reconciled against outturn figures and, in accordance with the provisions of Regulations 10 – 11 of the Non-Domestic Rating (Rates Retention) Regulations 2013 (SI 2013/452) (as amended), the authority will pay, or receive, the amount of any difference.

In line 9, authorities should record any such difference they anticipate will be repaid to the Collection Fund following the reconciliation of 2025-26 NNDR1s and NNDR3s (if there is a difference).

Line 10: Transfers/payments into the Collection Fund in 2025-26 in respect of a previous year’s deficit

Information Cell. Authorities are not required to enter data

Line 10 is automatically prefilled with the sums paid into the collection fund during 2024-25 in respect of the previous year’s deficit (see Part 1B line 23 [Surplus/Deficit at end of 2023-24] of the 2025-26 NNDR1).

Line 11: Total Other Credits

Information Cell. Authorities are not required to enter data

Line 11 provides the total other credits to be taken into account in the calculation of the 2025-26 estimated Collection Fund surplus, or deficit.

It is automatically calculated from the entries made in lines 8 – 10. The calculation is the sum of those lines.

Line 12: Transitional protection payments made, or to be made, in 2025-26

Data Cell. Authorities need to enter data (enter a negative no.)

Authorities should enter the amount of the transitional protection payments made, or to be made in respect of 2025-26 in accordance with the Non-Domestic Rating (Transitional Protection Payments) Regulations 2013 (SI 2013/106).

This sum should reflect the authority’s estimate of the transitional protection payment that will be payable to central government in respect of 2025-26 – in other words, it should anticipate the final outturn numbers that will be included in NNDR3s.

Line 13: Payments made, or to be made, to the Secretary of State in respect of the central share in 2025-26

Information Cell. Authorities are not required to enter data

This should be the amount that authorities have, to date, paid to central government in respect of its share of business rates income in 2025-26, or anticipate paying to central government, up to and including 31 March 2026.

This is the amount identified on the billing authority’s 2025-26 NNDR1 as the amount due to central government (Part 1B, line 15, column 1 [Non-Domestic Rating Income for 2025-26] of the 2025-26 NNDR1).

Line 14: Payments made, or to be made to, major precepting authorities in respect of business rates income in 2025-26

Information Cell. Authorities are not required to enter data

This should be the amount that authorities have, to date, paid to their major precepting authorities in respect of their share of non-domestic rating income in 2025-26, or anticipate paying to major precepting authorities up to and including 31 March 2026.

This is the amount identified on the billing authority’s 2025-26 NNDR1 as the amount to be paid to its precepting authorities during 2025-26 (see Part 1B, line 15 [Non-Domestic Rating Income for 2025-26] columns 3 and 4 of the 2025-26 NNDR1).

Line 15: Transfers made, or to be made, to the billing authority’s General Fund in respect of business rates income in 2025-26

Information Cell. Authorities are not required to enter data

This should be the amount that authorities have, to date, transferred to their General Fund in respect of their share of non-domestic rating income or anticipate transferring to their General Fund up to and including 31 March 2026.

This is the amount identified on the billing authority’s 2025-26 NNDR1 as the amount to be transferred during 2025-26 (see Part 1B, line 15 Column 2 [Non-Domestic Rating Income for 2025-26] of the 2025-26 NNDR1).

Line 16: Transfers made, or to be made, to the billing authority’s General Fund; and payments made, or to be made, to a precepting authority in respect of disregarded amounts in 2025-26

Information Cell. Authorities are not required to enter data

On the basis of the estimates made in NNDR1s, sums that are to be excluded from the rates retention scheme in respect of the allowance for the cost of collection, City of London offset, designated areas, renewable energy or Shale Oil and Gas schemes, are transferred to the billing authority’s General Fund, or paid to its major precepting authorities, as appropriate.

This should be the amount that authorities have, to date, transferred to their General Fund or paid to their major precepting authorities or anticipate transferring or paying up to and including the 31 March 2026.

This is the total amount identified on the billing authority’s 2025-26 NNDR1 as being deductible in respect of the cost of collection, City of London offset, designated areas renewable energy and Shale Oil and Gas schemes (see Part 1B, lines 16-22 [Other Income for 2025-26] of the 2025-26 NNDR1).

Line 17: Transfers/payments from the Collection Fund for end-year reconciliations

Data Cell. Authorities need to enter data (enter a negative no.)

For the purposes of the calculation of the estimated Collection Fund balance to be made in this part of the form, the sums paid, or transferred in accordance with the 2025-26 NNDR1 are charged at line 16.

At the end of a financial year, following submission of the NNDR3s, these sums will be reconciled against outturn figures and, in accordance with the provisions of Regulations 10 – 11 of the Non-Domestic Rating (Rates Retention) Regulations 2013 (As Amended) (SI 2013/452), the billing authority will pay or receive the amount of any difference.

In line 17, authorities should anticipate any sum that will be paid, or transferred, from, the Collection Fund following the reconciliation of 2025-26 NNDR1s and NNDR3s (if there is a difference).

Line 18: Transfers/payments made from the Collection Fund in 2025-26 in respect of a previous year’s surplus

Information Cell. Authorities are not required to enter data

Line 18 is automatically prefilled with the sums paid from the collection fund during 2025-26 in respect of the previous year’s surplus (see Part 1B, line 23 of the 2025-26 NNDR1).

Line 19: Total Other Charges

Information Cell. Authorities are not required to enter data

Line 19 provides the total other charges to be taken into account in the calculation of the 2025-26 Collection Fund surplus, or deficit.

It is automatically calculated from the entries made in lines 12 – 18. The calculation is the sum of those lines.

Line 20: Opening balance plus total credits, less total charges

Information Cell. Authorities are not required to enter data

Line 20 provides the figure for the estimated surplus, or deficit on the Collection Fund.

It is automatically calculated from the data entered in this Part of the form. The calculation is line 1 [Opening Balance] plus line 7 [Total business rates credits and charges] plus line 11 [Total Other Credits] plus line 19 [Total Other Charges].

Apportionment of the estimated surplus/deficit

Line 21: % for distribution of prior year surplus/deficit

Information Cell. Authorities are not required to enter data

Line 21 shows the percentage shares used to distribute the prior-year surplus or deficit. They are the shares due to authorities under the business rates retention scheme in respect of 2025-26.  

Line 22: Total prior year surplus/ deficit

Information Cell. Authorities are not required to enter data

Line 22 shows the total prior-year surplus/deficit.  Column 5 is calculated from lines 1, 10 and 18.  The calculation is line 1 plus line 10 plus line 18.  The figure in column 5 is apportioned between central government and authorities in columns 1 to 4, according to the percentage shares in line 21.

Line 23: % for distribution of in-year surplus/deficit

Information Cell. Authorities are not required to enter data

Line 23 shows the percentage shares used to distribute the in-year surplus or deficit.  They are the shares due to authorities in 2026-27 under the business rates retention scheme in respect of 2025-26.

Line 24: In-year surplus deficit

Information Cell. Authorities are not required to enter data

Line 24 shows the in-year surplus deficit.  Column 5 is calculated from lines 20 and 22. The calculation is line 20 minus line 22.  The figure in column 5 is apportioned between central government and authorities in columns 1 to 4, according to the percentage shares in line 23.

Line 25: Total

Information Cell. Authorities are not required to enter data

Line 25 adds together the sums due in lines 22 and 24 under each column, to show the total amounts due to, or from authorities in respect of the total estimated surplus/deficit.

These amounts must be paid to or from the Collection Fund during 2026-27.  A negative figure indicates an amount to be paid by central government or authorities into the Collection Fund.  A positive figure indicates an amount to be paid to central government or authorities from the Collection Fund.

Ministry for Housing, Communities and Local Government

December 2025

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1. A billing authority’s major precepting authorities (if any) are set out in the Non-Domestic Rating (Rates Retention) Regulations 2013 (SI 2013/452) (as amended). ↩