Non-Domestic Rates

Communities and Local Government written question – answered on 25th January 2010.

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Photo of Barbara Follett 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

No estimate of the average business rates charged in England for 2010-11 has been made, as this figure depend on the level of reliefs given, many of which are determined at the billing authorities' discretion.

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 zero inflation, which does not reflect the latest information available, and adjustments 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 no more by ensuring the share of the national rates bill paid by any one business reflects changes over time in the value of their property relative to others. The 2010 revaluation will not raise a single extra penny for Government.

Over a million properties will see their business rate liabilities come down as a result of revaluation. The Government intend to put in place a £2 billion relief scheme to limit the impact on the minority with bill increases, which in 2010-11 will ensure no business property sees its rates bill increase by more than 11 per cent. as a result of the revaluation, with maximum increases capped at just 3.5 per cent. for small properties. That is on top of the wider support available to help ease business pressures, including discounted rate bills for small businesses and deferring tax payments.

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