Common use of Definitions and Constructions Clause in Contracts

Definitions and Constructions. Lead Authority The Pool member (Hertfordshire County Council) who will act as the lead in managing the Pool’s resources and being the key contact between central government and the Pool. Levy A charge made by central government on any increase in business rates income above the NDR Baseline. It is calculated using a nationally set formula, with an upper limit of 50 ▇▇▇▇▇ in the pound. All tariff authorities within Hertfordshire are currently liable for levy at this upper limit. Memorandum of Understanding Means this Memorandum of Understanding including these clauses NDR Baseline The expected level of business rates to be collected, as calculated by central government NNDR1 A central government form used to estimate a future year’s business rates. Prepared on an annual basis by all billing authorities. Net Retained Levy The amount of levy retained locally. This is calculated as the sum of levies to be paid by individual Pool members if the Pool did not exist, less the levy to be paid by the Pool, less any safety net funding that would have been due to individual Pool members if the Pool did not exist and less the administrative costs of the Pool. Pool A voluntary arrangement amongst a group of local authorities (Hertfordshire County Council, Broxbourne Borough Council, North Herts District Council, Stevenage Borough Council, Three Rivers District Council and Welwyn ▇▇▇▇▇▇▇▇ Borough Council) to pool the business rates generated locally to ensure at least some of any levy is retained locally. Safety Net The additional funding received by an authority from central government if, in the government’s opinion, the decline in business rates in any financial year would leave an authority with insufficient resources. Calculated using a national formula. Tariff Authority Term A local authority whose Baseline Need is lower than their NDR Baseline, assessed by central government under the Business Rates Retention Scheme (in this pool, Broxbourne Borough Council, North Herts District Council, Stevenage Borough Council, Three Rivers District Council and Welwyn ▇▇▇▇▇▇▇▇ Borough Council). Under the Scheme, the authority pays a Tariff to central government equal to the difference between Baseline Need and NDR Baseline. means the term of this Memorandum of Understanding as specified in Clause 5 Top Up Authority A local authority whose Baseline Need is higher than their NDR Baseline, assessed by central government under the Business Rates Retention Scheme (in this pool, Hertfordshire County Council). Under the Scheme, the authority receives Top Up grant equal to the difference