Section 9: Credits to and debits from main non-domestic rating accounts
Schedule 7B to the 1988 Act makes provision for the local retention of non-domestic rates known as the Business Rates Retention Scheme (BRSS). Part 1 of Schedule 7B concerns the main non-domestic rating accounts and provides for the circumstances in which amounts may be credited or debited to the account. Previously, paragraph 2(3) allowed the Secretary of State to debit from the account amounts which had been used for the purpose of local government (grants to local government, for example) but this could not exceed the amounts specified in sub-paragraph (4). The provision in sub-paragraph (4) was flawed and did not allow the Secretary to debit from the account the full value of grants he had paid to local government.
	To correct this the Act amends paragraph 2(3) and (4) of Schedule 7B to the 1988 Act to allow the Secretary of State to credit or debit from the main non-domestic rating account amounts which the government has received and then used for the purpose of local government (such as grants). The amendments ensure that the Secretary of State may not make debits such as would result in a deficit on the non-domestic rating account.