Analysis of Rural Services Technical Adjustments Exemplifications in DCLG Business Rates Localisation Consultation
Authority:
Urban Comparator:
Mid Devon
Plymouth
Devon
Allerdale
Ashford
Changes to funding attributable to Rural Services Technical Adjustments - Pre and Post Damping
Babergh
Bassetlaw
35%
Boston
Mid Devon Exemplifications Data
Braintree
30%
Breckland
Pre Damping Post Damping
Additional Funding 31.65%
9.92%
25%
Damping
Loss
21.73%
Cherwell
20%
Chichester
Copeland
15%
Cotswold
Pre Damping
Damping
Loss
Additional
Funding
31.65%
Craven
10%
Daventry
Derbyshire Dales
Dover5%
East Cambridgeshire
East Devon
East 0%
Dorset
East HampshirePre Damping
East Hertfordshire
East Lindsey
2012/13 Funding
Impact of Rural Services Adjustment
2012/13 Funding with Adjustment
Percentage change arising from
Rural Services Adjustment
Post Damping Difference
4,189,538
1,325,871
5,515,409
4,168,689
413,436
4,582,125
31.65%
9.92%
-69%
The graph and table show that Mid Devon would have had a predamping 31.65% increase in funding if the rural services adjustment had
been implemented in 2012/13. However, damping would have reduced
that gain arising from the rural service technical adjustment to 9.92%.
Consequently, damping reduces the impact of the rural services
technical adjustment by 69% for Mid Devon.
9.92%
Post Damping
East Northamptonshire
Eden
Impact of the changes attributable to Rural Services Technical Adjustments on Funding - Pre and Post Damping
Forest Heath
Forest of Dean
The impact of the positive rural services technical adjustment and the
subsequent negative impact of damping can be seen in this graph.
Hambleton
£80
Harborough
Harrogate
High Peak
£16.89
£60
Hinckley and Bosworth
Additional
Funding per
Head
£5.27
Horsham
Huntingdonshire
£40
King's
Lynn and West Norfolk
2012/13
Funding per
Head
Lewes
Lichfield
£53.36
£53.09
Pre Damping
Post Damping
Maldon
£20
Malvern Hills
The pre-damping impact for Mid Devon is a funding gain of £16.89 per
head. For this reason, we feel that it is important that Mid Devon
supports the rural services technical adjustment in the consultation.
However, the post-damping impact for Mid Devon is a much reduced
funding gain of £5.27 per head. For this reason, SPARSE Rural have
called on the Government to find a way of ensuring that a greater
proportion of the pre-damping gains arising from the rural services
technical adjustment are realised as cash funding.
Melton
Mendip
£0
Mid Devon
Mid Suffolk
Mid Sussex
New Forest
Newark and Sherwood
Impact of the changes attributable to Rural Services Technical Adjustments on Funding - Comparison with Nearest Urban Authority - post damping
North Dorset
North East Derbyshire
North£500
Kesteven
North Norfolk
Comparison of Impact of Technical Changes - Mid Devon v
Plymouth
£283.18
£393.12
£415.37
£324.00
£275.58
£396.45
To provide a comparison, in two tier areas, County and District funding
North£400
Warwickshire
Pre Damping Post Damping
2012/13 Funding per53.36
Head
53.09
has been added together. So, in order to be comparable with Plymouth
Additional Funding per
16.89
Head
5.27
which is a unitary authority Mid Devon's funding per head has been
Ribble Valley
added to that of Devon County Council.
£300
Mid Devon
Richmondshire
In 2012/13, Mid Devon received £120.86 less funding per head than
Rother
2012/13
After Rural Technical
After Rural
Changes
Technical
(Pre Changes
Damping)(Post Damping)
Plymouth.
Rugby
£200
Mid Devon
£275.58
£324.00
£283.18
Plymouth
Prior to damping, the gains attributable to the rural services technical
Gap
-£120.86
-£91.38
-£109.94
adjustment would have resulted in a closing of the gap between
Plymouth
£396.45
£415.37
£393.12
£100
Plymouth and Mid Devon to £91.38 per head. This is a significant
Sedgemoor
improvement for rural areas and SPARSE Rural has welcomed the
Selby
changes in the recent Business Rates consultation.
Sevenoaks
£0
Shepway
2012/13
After Rural
After Rural
As shown above, the damping block significantly reduces the gains
South Bucks
Technical
Technical
South Cambridgeshire
arising from the rural services technical adjustment. After damping the
Changes (Pre Changes (Post
South Derbyshire
gap in funding between Plymouth and Mid Devon increases to £109.94
Damping)
Damping)
South Hams
per head.
South Holland