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Non-Domestic Rates: Small Businesses

Volume 488: debated on Friday 27 February 2009

To ask the Chancellor of the Exchequer what recent discussions he and his officials have had with the Department for Communities and Local Government on the effect of the national non-domestic rate (NNDR) on the viability of small and medium-sized enterprises; what representations he has received on the (a) level and (b) future levels of NNDR; what recent estimate he made of the (i) cost to the Exchequer of and (ii) number of additional properties which would benefit from (A) not implementing the 2009-10 increase in NNDR and (B) extending the small business rate relief scheme to (1) properties under £20,000 rateable value outside London and (2) properties under £30,000 rateable value outside London and simultaneously amending the small business multiplier to (x) 40 pence, (y) 42 pence and (z) 44 pence; and if he will make a statement. (258725)

Treasury Ministers and officials work closely with CLG and other relevant governmental Departments on national non-domestic rates (NNDR).

Treasury Ministers and officials receive representations from a wide range of organisations and individuals in the public and private sectors as part of the process of policy development and delivery. As was the case with previous Administrations, it is not the Government’s practice to provide details of such representations.

Freezing NNDR for all commercial properties for 2009-10 would cost the Exchequer almost £1 billion in business rates foregone.

No estimates have been made of the impact of amending small business rate relief (SBRR) or the small business multiplier to the levels set out in the question. The cost of such changes would be borne by other ratepayers.