Business rates yield growth within Enterprise Zones
How the figure is calculated:
The figure is calculated as the value of business rates relief plus the value of business rate yield minus the baseline level of business rates yield, across all enterprise zones. The data are taken from the Department's National Non-Domestic Rates 1 statistical returns, and are forecasts as reported by local authorities for the financial year 2015-16
Why is this indicator in the business plan?
Enterprise Zones are a key local growth initiative, designed to stimulate new businesses and jobs. The growth in business rates yield can be used as an indicator of how successful Enterprise Zones have been at attracting and growing businesses however, these are gross figures and have not been adjusted for additionality.
How often is it updated?
Annually. NNDR 1 forms, providing a forecast for the year ahead, are published in February prior to the financial year to which they refer. Provisional NNDR 3 forms, providing outturn figures, are published in August of the financial year after which they refer. A further revised release, based on auditor certified returns is published later in the year (November).
Where does the data come from?
Based on data returned to the Department for Communities and Local Government by English billing authorities on National Non-Domestic Rates (NNDR1) forms and the NNDR3 form.
What area does the headline figure cover?
England
Are further breakdowns of the data available?
Data are available by local authority.
What does a change in this indicator show?
An increase in the growth in business rates yield can be used as a proxy for the gross increase in economic activity in an Enterprise Zone (created by new or expanding businesses). The business rate yield figures are not adjusted for additionality.
Time Lag
NNDR1 forms are a leading indicator, NNDR 3 forms are published five months after the end of the financial year to which they refer.
Next available update
February 2016.
Type of Data
Official Statistic
Robustness and data limitations
The financial data contained in the NNDR1 form will be used by billing authorities and major precepting authorities to agree a schedule of payments for the share of business rates income that is to be paid to major precepting authorities. The data will also be used in calculating the entitlement that individual local authorities might have to safety net payments. It also informs other payments that need to be made under the business rates retention scheme, both between billing authorities and major precepting authorities, and between the Department for Communities and Local Government and local authorities.
This statistical release is based on 100% response rate on information provided by Friday 30 January 2015. Local authorities therefore have a very strong financial incentive to report accurate financial figures on the NNDR1 forms. The form also has to be signed by the Chief Finance Officer of the authority.
Figures are subjected to rigorous pre-defined validation tests both within the form itself, while the form is being completed by the authority and also within the Department for Communities and Local Government as the data are received and stored. Finally, the release document, once prepared, is also subject to intensive peer review before being cleared as fit for the purposes of publication.
Links to Further Information
The latest NNDR1 and NNDR3 statistical releases and local authority level data can be found here.
Contact Details
CorporatePerformance@communities.gsi.gov.uk