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Non-Domestic Rates

Volume 475: debated on Thursday 8 May 2008

To ask the Secretary of State for Communities and Local Government what the equivalent percentage rise in average business rate bills will be in a local authority area which levies the maximum supplementary business rate. (203042)

It is not possible to calculate the equivalent percentage increase in average business rate bills in a local authority area which levies the maximum business rate supplement, as it will depend on a number of factors, some of which can not be predicted. These include the level of the non-domestic rating multipliers before and at the time the supplement is levied and whether the property is in receipt of any rate relief. In addition, as announced in “Business rate supplements: a White Paper”, all properties with a rateable value of £50,000 or less will not have to pay the supplement, thus excluding the vast majority of business properties in England. Those authorities levying supplements will also be able to decide whether there should be an offset for ratepayers contributing to BIDs.

To ask the Secretary of State for Communities and Local Government what restrictions there are on how revenue from supplementary business rates can be spent by local authorities. (203044)

‘Business rate supplements: a White Paper’, published in October 2007, made clear that the power to raise supplements is not intended to provide general purpose revenues. The revenue from business rate supplements will only be available for initiatives that will promote the economic development of an area and which otherwise would not have taken place.