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Non-domestic Rates: Inflation

Volume 487: debated on Monday 2 February 2009

To ask the Secretary of State for Communities and Local Government (1) what assessment she has made of the effect on business rate revenue should the retail price index measurement of the rate of inflation fall below zero; (252329)

(2) what effect negative retail price index inflation would have on the business rates multiplier for the relevant year.

No such assessment has been made. The impact of the retail price index on business rates is determined by a formula in the Local Government Finance Act 1988, schedule 7, which outlines how to calculate the business rate multipliers using the RPI figure.