Treasury written question – answered at on 19 January 2010.
Paul Beresford
Conservative, Mole Valley
To ask the Chancellor of the exchequer what his estimate is of the amount of revenue from petrol retail outlets which the new business rate will generate in 2010-11.
Barbara Follett
Minister of State (the East of England), Regional Affairs, Parliamentary Under-Secretary of State (the East of England), Department for Communities and Local Government
I have been asked to reply.
No estimates of the revenue from petrol stations' business rates or that of any other category of hereditament have been made. Business rates Bills contain not only transitional relief but all other reliefs, some determined at the billing authorities' discretion. It is therefore, not possible to estimate the bill of a hereditament, and, consequently, that of any category of hereditaments.
For the purpose of modelling the 2010 Transitional Relief scheme, the Notional Chargeable Amount (NCA) was calculated. The NCA for a given year is the product of the rateable value and that year's small business multiplier. The NCA is then compared to the previous year's reference value increased by the caps. The minimum of these two values was used as a proxy for the bill after transition but before all other reliefs. Details on the methodology and assumptions used can be found on page 49 of the 'The transitional arrangements for the non-domestic rating revaluation 2010 in England' consultation document. These include an assumption of zero inflation, which does not reflect the latest information available. There is also an adjustment for appeals.
A copy of the consultation document is available at the following link:
http://www.communities.gov.uk/publications/localgovernment/nndrrevaluation2010
The five-yearly business rates revaluations make sure each business pays its fair contribution and the 2010 revaluation will not raise a single extra penny for Government. Over 1 million properties will see their business rate liabilities come down as a result of revaluation.
In the last five years, alongside rising petrol prices and increasing turnover, the rents paid on many petrol filling stations has grown. It is only fair to all ratepayers this is reflected in rate bills. The Government have put in place a £2 billion relief scheme to limit the impact on business properties facing increases, which means that in 2010-11 no petrol station will see its rates liability rise as a result of revaluation by more than 3.5 per cent. for small properties and 11 per cent. for large properties.
Yes1 person thinks so
No2 people think not
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