Communities and Local Government written question – answered at on 23 March 2010.
To ask the Secretary of State for Communities and Local Government how much on average was paid in business rates in the City of York in 2009-10; and what estimate he has made of the likely average amount to be paid in 2010-11 taking account of transitional relief.
holding answer
The figure derived from dividing the forecast net rate yield from the city of York's rating list in 2009-10 by the number of hereditaments on that local list as at
No estimates of the average bill in 2010-11 have been made, as these contain not only transitional relief but all other reliefs, some determined at the billing authorities' discretion. Therefore it is not possible to estimate the likely bill of a hereditament and any comparison with the average bill in 2009-10 will be flawed as it cannot take account of all of these reliefs.
However, for the purpose of modelling the 2010 Transitional Relief scheme, my Department has estimated a proxy for rates bills in 2010-11. The Notional Chargeable Amount (NCA) was calculated which 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. The figure derived from dividing the total of all proxy bills for 2010-11 in the city of York by the number of hereditaments on the draft 2010 rating list used for the Department's 2010 transitional relief modelling is £16,300.
The data used for this modelling are consistent with the consultation document titled The Transitional Arrangements for the Non-domestic Rating Revaluation 2010 in England. Details on the methodology and assumptions used can be found on page 49 of the consultation. The assumptions underlying this modelling 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 have 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.
Yes1 person thinks so
No0 people think not
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