Who audits Mandatory Relief from business rates?
Dear Department for Communities and Local Government,
My question concerns Mandatory Relief (hereditaments which are automatically entitled to relief of all or part of their rates bill - i.e. charities etc). This is adminstered by local government.
What body audits the granting by local authorities of this relief?
What does this audit consist of?
Many thanks for your assistance with this matter.
Yours faithfully,
William Thackeray
Dear Mr Thackeray
Thank you for your email of 15 March 2010 to Communities and Local Government (CLG) about the auditing of the granting of local authority rate relief’s.
As you may know, it is for each local authority to determine whether or not to grant mandatory rate relief, given the information before them as applied to the purposes of a charity. In the first instance, it is for the local authority to determine eligibility, with any definitive interpretation resting with the courts.
The granting of mandatory relief is subject to statute that CLG are the Department with responsibility. Local authorities will be subject to:
a) their own internal audit process, and
b) their NNDR3 returns where they report the amount of mandatory
relief granted to CLG which are subject to review by external auditors under the auspices of the Audit Commission.
The NNDR3 return is reviewed annually by an Audit Commission appointed auditor in accordance with a certification instruction, which is agreed with CLG each year. A copy of the latest instruction (2008/090 is attached for your information).
E J Stanislas
Communities and Local Government
Dear Edward,
Many thanks for the information, that's very useful.
There's one thing that I'm not 100% clear on, could you just confirm it for me? You say that
'As you may know, it is for each local authority to determine whether or not to grant mandatory rate relief, given the information before them as applied to the purposes of a charity. In the first instance, it is for the local authority to determine eligibility, with any definitive interpretation resting with the courts.'
Am I right in thinking that means that the auditors do not examine the application for mandatory relief, and confirm whether or not the local authority was right to grant it?
Thank you again for the time and attention you have spent on this query.
Yours sincerely,
William Thackeray
Mr Thackeray
In the first instance, it is for the individual local authority to satisfy themselves that they are correctly applying any rate relief. Of course, an auditor can query that decision but it is ultimately for the courts to decide if the law is being applied and followed correctly.
Regards.
Edward
Edward Stanislas
Communities and Local Government
Many thanks, Edward.
What I'm getting at is, do the auditors have a responsibility to check that rate relief has been correctly applied?
My understanding is that they don't, but I'm not completely clear on this point.
Thanks again for your help with this matter.
Yours sincerely,
William
Dear William
I'm afraid that I am unable to outline the responsibilities of auditors as requested as this is not a responsibility that communities hold. However, you may wish to contact the Audit Commission who should be able to give you a fuller reply.
Regards.
Edward
Many thanks Edward, I'll do that.
Thank you again for all your assistance with this matter.
Yours sincerely,
William Thackeray
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