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Part IVV Financial Provisions

I Provision for the Expenses of Internal Drainage Boards

Raising and apportionment of expenses

36 Raising of the expenses of internal drainage boards

(1) The expenses under this or any other Act of the drainage board for an internal drainage district (including any contribution made by the board towards expenses of the NRA) shall, in so far as they are not met by contributions from the NRA, be raised by means of—

(a) drainage rates made by the board under and in accordance with Chapter II of this Part or, in relation to any time before 1st April 1993, the provisions saved by virtue of paragraph 15 of Schedule 2 to the [1991 c. 60.] Water Consolidation (Consequential Provisions) Act 1991; and

(b) special levies issued by the board under and in accordance with regulations made under section 75 of the [1988 c. 41.] Local Government Finance Act 1988.

(2) The expenses of a drainage board which are raised by means of drainage rates in respect of the financial year beginning in 1993 and subsequent financial years shall be defrayed out of such rates without regard to the purpose for which any such expenses were incurred.

37 Apportionment of drainage expenses

(1) Subject to any provision made by or under section 38 below, the following provision shall have effect with respect to the raising by a drainage board for any internal drainage district of their expenses for the financial year beginning in 1993 and each subsequent financial year, that is to say—

(a) the proportion of the expenses of the board which shall be raised from the proceeds of drainage rates shall be equal to the agricultural proportion, determined for that year in accordance with the following provisions of this section, of land values in that district; and

(b) the proportion of the expenses of the board which shall be raised from the proceeds of special levies shall be such as to raise the balance of the expenses of the board remaining after deduction of the amount to be raised for that year from the proceeds of drainage rates.

(2) The drainage board for every internal drainage district, before 15th February 1993 and before 15th February in every subsequent year, shall determine for the financial year beginning on the following 1st April—

(a) the aggregate annual value of the chargeable properties in that district; and

(b) the aggregate value of all other land in that district;

and the agricultural proportion for any financial year of land values in that district shall be the amount determined for that year under paragraph (a) above divided by the sum of that amount and the amount determined for that year under paragraph (b) above.

(3) A determination made under subsection (2) above for any financial year shall be made as at the 31st December preceding that financial year.

(4) For the purposes of this section the annual value of a chargeable property shall be its annual value for the purposes of Chapter II of this Part.

(5) For the purposes of this section the value of other land in an internal drainage district shall be taken to be—

(a) in the case of a hereditament shown in the local non-domestic rating list of a charging authority on 1st April 1990, one third of the relevant proportion of the rateable value shown for that hereditament in respect of that date in that list on 31st December 1992;

(b) in the case of domestic property shown in a valuation list on 31st March 1990, one third of the relevant proportion of the rateable value shown for it in the list on that date multiplied by a factor of 6.73;

(c) in the case of a hereditament which—

(i) is neither one to which paragraph (a) above applies nor domestic property to which paragraph (b) above applies; but

(ii) was shown on the 31st March 1990 in the register maintained for the drainage board for that district in accordance with the [S.I. 1968/1672.] Registers of Drainage Boards Regulations 1968,

one third of the annual value shown for that hereditament in that register on that date multiplied by a factor of 8.02;

(d) in the case of any land to which none of paragraphs (a) to (c) applies, the amount calculated by multiplying—

(i) the area of the land, expressed in hectares and parts of a hectare; by

(ii) such a unit value per hectare as represents the average value per hectare of all land to which those paragraphs do apply if the average is calculated by reference to the values determined in accordance with those paragraphs.

(6) In paragraphs (a) and (b) of subsection (5) above—

  • “relevant proportion”, in relation to the rateable value of any hereditament, means the proportion of that value which the area of the part of the hereditament lying within the internal drainage district in question bears to the total area of that hereditament; and

  • “valuation list” means a valuation list maintained under Part V of the [1967 c. 9.] General Rate Act 1967.

Division of district for purposes of drainage rates and special levies

38 Orders sub-dividing a district for the purposes of raising expenses

(1) A drainage board for an internal drainage district, after consultation with the NRA, may—

(a) for the purpose of levying differential drainage rates or issuing differential special levies, from time to time by order divide that district into sub-districts; and

(b) if, having regard to all the circumstances, they think that it is just to do so, exercise their powers, under Chapter II of this Part or any regulations made under section 75 of the [1988 c. 41.] Local Government Finance Act 1988, to make and levy differential drainage rates or issue differential special levies.

(2) Any order made under this section in respect of an internal drainage district may determine the proportions of the expenses of the drainage board for that district which are to be raised in the respective sub-districts within that district.

(3) Where an order made under this section is in force in respect of an internal drainage district and the order does not determine the proportions of the expenses of the drainage board for that district which are to be raised in the respective sub-districts, the amount to be raised in the respective sub-districts shall be determined as follows, that is to say—

(a) expenses incurred in connection with new works or the maintenance or improvement of existing works in each sub-district shall be raised in that sub-district; and

(b) there shall be raised in each sub-district a proportionate part—

(i) of the charges incurred by the board in respect of contributions to the NRA under section 139 of the [1991 c. 57.] Water Resources Act 1991 (contributions from internal drainage boards to NRA), or amounts specified under section 58 below as corresponding to such contributions; and

(ii) of other expenses and charges not directly attributable to the maintenance of particular works.

(4) Where an order under this section is in force in respect of an internal drainage district, the proportions of the expenses of the drainage board for that district raised in a sub-district which shall be raised by means of drainage rates and special levies respectively shall, in respect of the financial year beginning in 1993 and each subsequent financial year, bear the same proportion to each other as are borne to each other by the following amounts, that is to say—

(a) the aggregate of the annual values of the chargeable properties in that sub-district; and

(b) the aggregate of the values of other land in that sub-district;

and subsections (2) to (6) of section 37 above shall have effect in respect of each sub-district for the purpose of determining those aggregate amounts as they have effect in respect of an internal drainage district for the purpose of determining the amounts specified in subsection (2)(a) and (b) of that section.

(5) When an order is made under this section by the drainage board for an internal drainage district, the board shall—

(a) submit the order to the relevant Minister; and

(b) forthwith thereafter publish, in one or more newspapers circulating in that district, a notice under subsection (6) below.

(6) A notice under this subsection is a notice stating—

(a) that the order has been submitted to the relevant Minister;

(b) that a copy of the order is open to inspection at a specified place; and

(c) that representations with respect to the order may be made to the relevant Minister within one month after the publication of the notice.

(7) Where an order is submitted to the relevant Minister under this section—

(a) he shall forthwith take into consideration the order; and

(b) the order shall have no effect unless and until it is confirmed by him.

39 Petition for sub-division of internal drainage district

(1) Subject to subsection (6) below, where a petition for the making, variation or revocation of an order under section 38 above is made to the drainage board for an internal drainage district by a sufficient number of qualified persons or by a qualified authority, the board—

(a) shall consider the petition; and

(b) if so directed by a direction under subsection (2) below, shall make, vary or revoke the order, either in accordance with the petition or in accordance with the petition as modified by the direction.

(2) A direction under this subsection is a direction given—

(a) if the NRA is the board, by either of the Ministers; and

(b) in any other case, by the NRA.

(3) Where an internal drainage board object to a direction under subsection (2) above given by the NRA, the direction shall have no effect unless confirmed (with or without modifications) by the relevant Minister.

(4) Subject to subsection (6) below, where a petition under this section is received by the drainage board for an internal drainage district, the board shall—

(a) inform the NRA or, if the NRA is the board, one of the Ministers; and

(b) publish a notice under subsection (5) below in one or more newspapers circulating in that district.

(5) A notice under this subsection is a notice—

(a) that the petition has been received,

(b) that the making, variation or revocation of an order under section 38 above will be considered; and

(c) that representations may be made to the drainage board within a period (which shall not be less than thirty days) stated in the notice.

(6) This section does not require the drainage board for an internal drainage district to consider any petition or publish any notice of a petition if—

(a) they have received a petition under this section within the period of ten years immediately preceding the making of the first-mentioned petition;

(b) they have, within that period, by an order made in exercise of the powers conferred by section 38 above, divided their district into sub-districts or varied or abolished any sub-district; or

(c) the petition is frivolous in the opinion of the NRA or, if the NRA is the board, of either of the Ministers.

(7) After considering a petition under this section and not later than six months after it is received, a drainage board shall inform the NRA or, as the case may be, one of the Ministers—

(a) whether they propose to make, vary or revoke any order under section 38 above; and

(b) if they propose to make or vary such an order, of the terms of the order or variation they propose to make.

II Drainage Rates

Levying of drainage rates

40 Levying of drainage rates

(1) In respect of financial years beginning in or after 1993, the drainage board for an internal drainage district may make a drainage rate in respect of agricultural land and buildings.

(2) Every drainage rate made under this Chapter by the drainage board for an internal drainage district shall be assessed and levied, subject to and in accordance with this Chapter and any order under section 38 above, on the occupiers of hereditaments in the district; but for the purposes of this subsection and the following provisions of this Chapter the owner of a hereditament shall be deemed to be its occupier during any period during which it is unoccupied.

(3) Every drainage rate shall be made in respect of a financial year and, without prejudice to section 50 below or any corresponding provision of any local Act, the drainage board for an internal drainage district shall not make more than one rate in respect of the same financial year.

(4) Every drainage rate shall be made before 15th February in the financial year preceding that in respect of which it is made, but is not invalid merely because it is made on or after that date.

41 Rates charged by reference to annual value of agricultural land and buildings

(1) Subject to section 38 above and section 47 below, a rate made by the drainage board for an internal drainage district shall be assessed at a uniform amount per pound throughout the district on the annual value of the agricultural land or agricultural buildings in respect of which it is made.

(2) For the purposes of this Chapter the annual value of any chargeable property shall (subject to sections 43 and 44 below) be the amount, determined in accordance with section 42 below, which is equal to the yearly rent, in respect of a holding comprising the chargeable property, at which the holding might reasonably be expected to have been let, by a prudent and willing landlord to a prudent and willing tenant, on a tenancy from year to year commencing on 1st April 1988 and on the relevant terms.

(3) For the purposes of subsection (2) above chargeable property is let on the relevant terms if—

(a) the tenancy incorporates the terms set out in subsection (4) below; and

(b) the property is let on the terms relating to maintenance, repair and insurance of fixed equipment which are set out in the Schedule to the [S.I. 1973/1473.] Agriculture (Maintenance, Repair and Insurance of Fixed Equipment) Regulations 1973.

(4) The terms mentioned in subsection (3)(a) above are—

(a) a covenant by the tenant, in the event of the destruction by fire of harvested crops grown on the holding for consumption on it, to return to the holding the full equivalent manurial value of the crops destroyed, in so far as the return of that value is required for the fulfilment of his responsibilities to farm in accordance with the rules of good husbandry;

(b) a covenant by the tenant to insure against damage by fire all dead stock on the holding and all harvested crops grown on the holding for consumption on it;

(c) a power for the landlord to re-enter on the holding in the event of the tenant not performing his obligations under the tenancy agreement;

(d) a covenant by the tenant not to assign sub-let or part with possession of the holding or any part of it without the landlord’s consent in writing.

(5) In determining for the purposes of subsection (2) above the yearly rents at which a property might reasonably be expected to have been let, any liability for the payment of drainage rates shall be disregarded, but account shall be taken of all other relevant factors, including, in every case—

(a) the character and situation of the holding (including the locality in which it is situated);

(b) the productive capacity of the holding and its related earning capacity; and

(c) the level of rents for comparable lettings current on 1st April 1988.

(6) In determining for the purposes of subsection (5) above the level of rents current on 1st April 1988 for comparable lettings—

(a) account may be taken of any available evidence with respect to the rents which are or were payable in respect of tenancies of comparable agricultural holdings on terms (other than terms fixing the rent payable) similar to those assumed for the holding in question; but

(b) the following shall be disregarded—

(i) any element of the rents in question which is due to appreciable scarcity of comparable holdings available for letting on such terms compared with the number of persons seeking to become tenants of such holdings on such terms;

(ii) any element of those rents which is due to the fact that the tenant of, or a person tendering for, a comparable holding is in occupation of other land in the vicinity of that holding that may conveniently be occupied with that holding; and

(iii) any effect on those rents which is due to any allowances or reductions made in consideration of the charging of premiums.

(7) In this section—

  • “productive capacity”, in relation to a holding, means the productive capacity of the holding determined (taking into account fixed equipment and any other available facilities on the holding) on the assumption that the holding is in the occupation of a competent tenant practising a system of farming suitable to the holding; and

  • “related earning capacity”, in relation to the productive capacity of a holding, means the extent to which, in the light of that productive capacity, a competent tenant practising such a system of farming could reasonably be expected to profit from farming that holding.

Determination and modification of annual value

42 Determination of annual value

(1) Without prejudice to sections 43 and 44 below, the drainage board for every internal drainage district shall, not later than 31st December 1992, determine the annual value for the purposes of section 41 above of each chargeable property in their district on that date.

(2) Where after 31st December 1992—

(a) any property in an internal drainage district becomes chargeable property;

(b) any property consisting of agricultural land or buildings becomes part of an internal drainage district,

then, as soon as practicable after the date (“the valuation date”) on which the property has become chargeable property or, as the case may be, part of that district, the drainage board for that district shall determine the annual value for the purposes of section 41 above of that property.

(3) A determination made under subsection (2) above shall have effect from the valuation date.

(4) Where any drainage board make a determination under this section, they shall serve notice of the determination, together with a statement in writing of the right of appeal under section 45 below, on the occupier of the property to which the determination relates.

(5) For the purpose of enabling the drainage board for an internal drainage district to comply with their obligations under subsections (1) and (2) above, the occupier of a chargeable property shall afford reasonable facilities for inspecting the property to the drainage board for the internal drainage district in which the property lies and to the officers and agents of that board.

43 Adjustment of annual values to secure fair distribution of rating burden

(1) If the drainage board for any internal drainage district are of the opinion that the amount of the annual value of any chargeable property in that district should be increased or reduced, having regard to changes in the relevant circumstances, for the purpose of securing that the burden of the drainage rates payable in respect of all chargeable properties in the district is fairly distributed so far as reasonably practicable among the persons liable to pay those rates, the board may make a determination of annual value under this section.

(2) If the occupier of any chargeable property in a drainage district is of the opinion that, having regard to changes in the relevant circumstances, the amount of the annual value of the property should be altered for the purpose mentioned in subsection (1) above—

(a) he may request the drainage board in writing to make a determination under this section in respect of the property; and

(b) the board shall either comply with the request or, if they consider that no alteration of the value is required for that purpose, determine that the request be refused.

(3) A determination of annual value under this section shall be a determination in accordance with section 44 below specifying as the annual value of the chargeable property in question such greater or smaller amount than the amount of the annual value as the board, having regard—

(a) to the changes in the relevant circumstances; and

(b) to any other alterations of annual values under this section made or proposed by the board,

consider just for the purpose mentioned in subsection (1) above.

(4) For the purposes of this section a change in the relevant circumstances, in relation to any chargeable property, is a change in the circumstances by reference to which the annual value of the property in question, or of any other chargeable property in the district in question, was fixed.

44 Effect of determinations under section 43

(1) Where a drainage board make a determination under section 43 above, they shall serve notice of the determination, together with a statement in writing of the rights of appeal conferred by section 45 below, on the occupier of the chargeable property to which the determination relates.

(2) Subject to section 46 below (and notwithstanding anything in section 41 above), where a determination of annual value under section 43 above is made in pursuance of section 43(1) above, the annual value of the property in question shall, for the purposes of any drainage rate made after the effective date, be that specified in the determination.

(3) Subject to section 46 below (and notwithstanding anything in section 41 above), where a determination of annual value under section 43 above is made in pursuance of section 43(2) above, the annual value of the property in question shall for the purposes of—

(a) any drainage rate made in respect of any period included in the financial year in which the request for the determination was made; and

(b) any drainage rate made in respect of any subsequent period,

be that specified in the determination.

(4) Where—

(a) the annual value of any chargeable property is altered by a determination under section 43 above which is made in pursuance of subsection (2) of that section;

(b) drainage rates for any period in respect of the chargeable property have been or are subsequently paid by reference to its annual value before the alteration; and

(c) the period is one for which, in accordance with subsection (3) above, the amount of those rates falls to be assessed on the value specified in the determination,

that amount shall be recalculated accordingly and any sum overpaid shall be repaid or allowed, and any sum underpaid may be recovered as if it were arrears of drainage rates.

(5) In this section “the effective date”, in relation to a determination under section 43 above, means the date on which notice of the determination is served in pursuance of subsection (1) above on the occupier of the chargeable property to which the determination relates.

45 Appeals against determinations of annual value

(1) Subject to the following provisions of this section, where a determination under section 42 or 43 above is made by the drainage board for an internal drainage district, the occupier of the land in respect of which the determination is made may appeal, in accordance with this section, against the determination.

(2) An occupier who wishes to appeal under this section against any determination must, before the end of—

(a) the period of twenty-eight days beginning with the date of service on him of notice of the determination; or

(b) such longer period as the drainage board which made the determination may allow, either generally or in any particular case,

serve on the board a notice objecting to the determination and stating the grounds of the objection.

(3) Where notice of objection to a determination is served in pursuance of subsection (2) above, the drainage board which made the determination, if they think fit, may, before the end of the period of twenty-eight days beginning with the date of service of the notice on them—

(a) cancel the determination; and

(b) subject to subsection (4) below, make in its place a fresh determination under section 42 or, as the case may be, section 43 above;

and section 46(7) below shall have effect in relation to the cancellation and the other provisions of this Chapter shall have effect in relation to the fresh determination accordingly.

(4) Where notice of objection is served in pursuance of subsection (2) above in respect of a determination made by a drainage board under section 43 above, the board—

(a) may cancel the determination in accordance with subsection (3) above without making a fresh determination in its place; and

(b) where they do so, shall serve notice of cancellation on the person by whom the notice of objection was served on them.

(5) Where—

(a) notice of objection to a determination is served in pursuance of subsection (2) above and is not withdrawn before the end of the period mentioned in subsection (3) above; and

(b) the drainage board which made the determination do not cancel it in accordance with subsection (3) above,

that board shall, forthwith after the end of that period, transmit the notice and a note of the determination to the clerk of the appropriate tribunal.

(6) The transmission in pursuance of subsection (5) above of the notice of objection to a determination by a drainage board shall constitute the lodging of an appeal against the determination, by the person who served the notice on the board, to a valuation and community charge tribunal constituted in accordance with section 46 below.

(7) In subsection (5) above “the appropriate tribunal”, in relation to a determination under section 42 or 43 above, means-

(a) the valuation and community charge tribunal established, in accordance with regulations under Schedule 11 to the [1988 c. 41.] Local Government Finance Act 1988, for the area in which the land to which the determination relates is situated; or

(b) where different parts of that land are situated in different areas for which such tribunals are established, such one of those tribunals as may be determined by or under the [S.I. 1970/1152.] Drainage Rates (Appeals) Regulations 1970.

46 Hearing and determination of appeals under section 45

(1) It shall be the duty of the president of the valuation and community charge tribunal to whose clerk a notice of objection is transmitted in pursuance of section 45 above to arrange for the appeal to which the notice relates to be heard and determined.

(2) Subsections (5) and (6) of section 88 of the 1967 Act shall apply—

(a) to the constitution of the tribunal to hear and determine an appeal against a determination under section 42 or 43 above; and

(b) to the rehearing of such an appeal in case of such a failure to agree as is mentioned in subsection (6) of section 88 of that Act.

(3) On the hearing of an appeal to a valuation and community charge tribunal against a determination under section 42 or 43 above the following persons, that is to say—

(a) the person whose notice of objection to the determination in question has resulted in the hearing;

(b) any other person who is the occupier of any land to which the determination relates; and

(c) the drainage board by which the determination was made,

shall be entitled to appear and be heard as parties to the appeal and to call witnesses and to examine any witness before the tribunal.

(4) On an appeal to a valuation and community charge tribunal against a determination under section 42 or 43 above, the tribunal—

(a) shall sit in public, unless the tribunal otherwise orders, on being satisfied, on the application of a party to the appeal, that the interests of that party would be prejudicially affected; and

(b) shall have power to administer oaths and to take evidence on oath;

but, subject to that and to the [S.I. 1970/1152.] Drainage Rates (Appeals) Regulations 1970, the procedure of such a tribunal in relation to such an appeal shall be such as the tribunal may determine.

(5) The tribunal which is convened under this section to determine an appeal against a determination under section 42 or 43 above shall, after hearing the persons mentioned in subsection (3) above or such of them as desire to be heard, do one of the following—

(a) quash the determination to which the appeal relates; or

(b) alter the determination in such manner as the tribunal thinks just; or

(c) dismiss the appeal.

(6) Section 77 of the 1967 Act (which provides for appeals from valuation and community charge tribunals to the Lands Tribunal) shall have effect in relation to a decision of a valuation and community charge tribunal on an appeal against a determination under section 42 or 43 above as if—

(a) for the reference to section 76 of that Act there were substituted a reference to the preceding provisions of this section; and

(b) the words from “and the valuation officer” onwards were omitted.

(7) Where a determination under section 42 or 43 above of the amount of the annual value of any property is quashed or altered on appeal or is cancelled in accordance with section 45 above, then (except in so far as the parties agree otherwise)—

(a) that amount of the annual value shall be recalculated accordingly; and

(b) any sum overpaid shall be repaid or allowed and any sum underpaid may be recovered as if it were arrears of drainage rates.

(8) Where a determination under section 42 or 43 above which has been quashed is subsequently restored on appeal—

(a) the amount of any drainage rate falling to be recalculated in consequence of the appeal shall (except in so far as the parties agree otherwise) be recalculated accordingly; and

(b) any sum overpaid shall be repaid or allowed and any sum underpaid may be recovered as if it were arrears of drainage rates.

(9) In this section “the 1967 Act” means the [1967 c. 9.] General Rate Act 1967.

Power to grant exemptions from rating

47 Power to grant exemptions from rating

(1) The drainage board for an internal drainage district, after consultation with the NRA, may by order determine that no rates shall be levied by them on the occupiers of hereditaments in any portion of the district which, in their opinion, ought (either by reason of its height above sea level or for any other reason) to be exempted wholly from rating.

(2) Subsections (5) to (7) of section 38 above shall apply in relation to orders made under this section as they apply in relation to orders made under that section.

(3) Where the occupier of any hereditament in an internal drainage district requests the drainage board for the district to make or amend an order under this section so as to exempt from drainage rates the portion of the district in which the hereditament is situated, the board—

(a) shall consider the request; and

(b) if so directed under this section, shall comply with it.

(4) Where a request under subsection (3) above is refused by the drainage board for an internal drainage district, the person making it may appeal—

(a) to the NRA; or

(b) if the board is the NRA, to the relevant Minister;

and the NRA or, as the case may be, the relevant Minister may direct the board to make or amend the order as requested.

(5) Where a request under subsection (3) above is neither refused nor complied with within three months after it is made, it shall be treated for the purposes of subsection (4) above as having been refused.

Making and assessment of rates

48 Procedure for making of rate

(1) A drainage rate shall—

(a) be made by the drainage board for an internal drainage district in writing under the common seal of the board; and

(b) be treated as made on the date on which a resolution is passed by the board authorising their seal to be affixed to the rate.

(2) A drainage rate made by a drainage board shall not be valid unless notice of it stating-

(a) the amount of the rate;

(b) the amounts of the board’s expenses to be raised by means of drainage rates and special levies, respectively; and

(c) the date on which the rate was made,

is given by the board in accordance with subsection (3) below within ten days of its being made.

(3) A notice under subsection (2) above of a rate made by the drainage board for any internal drainage district may, as the board think fit, either—

(a) be affixed in one or more public or conspicuous places in that district; or

(b) be published in one or more newspapers circulating in that district.

(4) Every drainage rate shall be in the prescribed form.