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Business Rates

Volume 493: debated on Tuesday 2 June 2009

16. To ask the Secretary of State for Communities and Local Government what estimate she has made of the change in liabilities on small firms arising from arrangements for transitional relief for business rates in (a) England and (b) Bromley in 2009-10. (277615)

The impact of Revaluation on businesses is used to model an appropriate transitional relief scheme at each Revaluation. No formal consideration is made of the effect of the transitional relief scheme during each subsequent financial year.

However, the Government are aware of the impact that large increases in business rate bills can have on all businesses when transitional relief comes to an end. This is why we are allowing businesses to defer over two years 60 per cent. of the increase in their business rates bill for 2009-10 caused by the ending of transitional relief. That is in addition to allowing the deferral of 60 per cent. of the increase caused by the annual inflation adjustment.