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Non-Domestic Rates

Volume 497: debated on Tuesday 13 October 2009

To ask the Secretary of State for Communities and Local Government how many businesses have claimed (a) small business rate relief, (b) mandatory relief, (c) discretionary relief, (d) rural settlement relief and (e) hardship relief in (i) Hemel Hempstead constituency, (ii) Dacorum, (iii) Hertfordshire and (iv) England in each of the last five years. (289424)

Details of the number of businesses claiming business rate reliefs as at 31 December 2007 and 31 December 2008 in the Dacorum council area, Hertfordshire and England are shown in the following tables.

Number of hereditaments in receipt of business rate relief as at 31 December 2007

Dacorum

Hertfordshire

England

Mandatory relief

480

5,321

275,159

Of which:

Rural rate relief

2

63

6,603

Discretionary relief

145

1,225

48,767

Of which:

Rural rate relief

1

55

3,515

Number of hereditaments in receipt of business rate relief as at 31 December 2008

Dacorum

Hertfordshire

England

Mandatory relief

706

3,419

236,636

Of which:

Rural rate relief

1

61

6,308

Discretionary relief

145

1,037

49,909

Of which:

Rural rate relief

0

52

3,565

Data for 2007 and 2008 are not strictly comparable as the rules governing empty property rate relief were changed by the Ratings (Empty Properties) Act 2007 and further subsequent changes.

Data for hardship relief and small business rate relief in these years are not available.

Data are not available at a constituency level and data for earlier years were not collected.

To ask the Secretary of State for Communities and Local Government how many (a) small and (b) large properties in each region will be subject to (i) an increase and (ii) a decrease in business rates of (A) zero, (B) one to five, (C) six to 10, (D) 11 to 15, (E) 16 to 20, (F) 21 to 30, (G) 31 to 40, (H) 41 to 50, (I) 51 to 100, (J) 101 to 200 and (K) over 200 per cent. before the application of transitional relief in 2010-11. [Official Report, 22 October 2009, Vol. 497, c. 5-6MC.] (289906)

The following tables show the number of small and large properties by their percentage change in business rates before the application of transitional relief in 2010-11, grouped by Government office region.

A small property is defined as having a rateable value less than £18,000, or £25,500 in London. This is the definition proposed in the 2010 Transitional Relief consultation document published on 8 July 2009.

The analysis uses data from the Local List only; properties on the Central List are excluded.

Small properties

North East

North West

North Yorkshire and the Humber West

East Midlands

West Midlands

East of England

London

South East

South West

Less than -50%

200

600

500

1,200

400

600

800

700

400

Between -50% (including) and -40% (excluding)

300

900

600

1,800

600

900

1,500

900

600

Between -40% (incl.) and -30% (excl.)

500

1,900

1,400

5,900

1,700

2,500

2,500

2,800

1,700

Between -30% (incl.) and -20% (excl.)

2,200

6,000

4,100

16,100

8,100

6,600

6,700

11,500

4,900

Between -20% (incl.) and -15% (excl.)

10,000

36,400

31,700

43,000

32,900

22,500

28,500

46,600

13,500

Between -15% (incl.) and -10% (excl.)

8,300

18,700

12,100

8,900

18,600

13,400

11,900

18,900

10,600

Between -10% (incl.) and -5% (excl.)

10,900

23,800

18,700

8,000

19,900

14,900

20,500

23,400

15,600

Between -5% (incl.) and -0% (excl.)

7,700

20,400

15,200

5,600

13,200

13,500

19,700

14,400

15,900

No change (0%)1

2

2

2

2

2

100

2

100

2

Between 0% (excl.) and 5% (incl.)

7,400

18,900

14,200

4,700

12,900

12,000

24,300

12,300

18,400

Between 5% (excl.) and 10% (incl.)

2,500

10,400

9,600

2,400

5,900

7,900

16,300

8,200

12,100

Between 10% (excl.) and 15% (incl.)

2,100

9,300

7,200

1,800

6,600

6,900

10,500

7,600

10,300

Between 15% (excl.) and 20% (incl.)

1,400

7,200

4,700

1,200

4,200

7,300

10,600

5,300

7,800

Between 20% (excl.) and 30% (incl.)

2,000

11,200

5,900

1,400

6,100

8,700

13,500

7,900

11,000

Between 30% (excl.) and 40% (incl.)

1,000

6,600

2,800

800

2,300

6,000

8,700

4,300

7,500

Between 40% (excl.) and 50% (incl.)

400

3,300

1,500

700

1,500

2,200

5,600

2,200

4,200

Between 50% (excl.) and 100% (incl.)

1,100

5,200

2,600

1,200

2,800

3,600

10,800

4,900

8,200

Between 100% (excl.) and 200% (incl.)

300

1,000

800

300

600

1,000

1,700

1,000

1,300

More than 200% (excl.)

100

200

200

100

200

300

100

200

400

1 344 properties see no change in their business rates bill. All these properties have zero Rateable Value before and after the revaluation.

2 Negligible (less than 50).

Note:

Figures rounded to the nearest hundred.

Large properties

North East

North West

North Yorkshire and the Humber West

East Midlands

West Midlands

East of England

London

South East

South West

Less than -50%

1

100

1

1

100

100

100

100

1

Between -50% (including) and -40% (excluding)

100

200

100

200

200

200

200

300

100

Between -40% (incl.) and -30% (excl.)

100

600

300

1,100

500

800

700

1,100

400

Between -30% (incl.) and -20% (excl.)

600

2,200

1,200

4,600

3,100

3,200

2,400

7,100

1,400

Between -20% (incl.) and -15% (excl.)

2,800

9,500

7,500

9,700

9,400

6,300

5,900

15,500

3,200

Between -15% (incl.) and -10% (excl.)

2,500

7,700

5,300

3,500

8,300

6,600

5,800

10,000

3,700

Between -10% (incl.) and -5% (excl.)

2,500

8,500

5,500

2,600

6,400

6,900

8,100

9,600

4,600

Between -5% (incl.) and -0% (excl.)

2,100

6,900

4,500

2,300

4,900

6,000

9,200

7,400

5,100

No change (0%)2

0

0

0

0

0

0

9,300

0

0

Between 0% (excl.) and 5% (incl.)

1,700

5,700

4,000

1,900

3,300

4,800

7,000

5,800

5,300

Between 5% (excl.) and 10% (incl.)

1,100

3,800

3,000

1,300

2,200

3,700

5,300

4,600

4,300

Between 10% (excl.) and 15% (incl.)

900

2,800

2,200

900

1,400

2,800

4,300

3,400

3,600

Between 15% (excl.) and 20% (incl.)

600

2,000

1,700

600

1,000

2,000

6,900

2,600

2,700

Between 20% (excl.) and 30% (incl.)

900

2,700

2,100

700

1,300

2,500

5,200

3,200

3,500

Between 30% (excl.) and 40% (incl.)

400

1,500

1,000

400

600

1,500

4,000

1,900

1,800

Between 40% (excl.) and 50% (incl.)

200

800

600

300

400

800

10,100

1,100

1,200

Between 50% (excl.) and 100% (incl.)

400

1,400

900

600

600

1,400

1,100

2,100

1,800

Between 100% (excl.) and 200% (incl.)

200

500

300

300

300

400

200

600

500

More than 200% (excl.)

100

100

100

100

100

100

0

200

200

1 Negligible (less than 50).

2 344 properties see no change in their business rates bill. All these properties have zero Rateable Value before and after the revaluation.

Note:

Figures rounded to the nearest hundred.

To ask the Secretary of State for Communities and Local Government if he will place in the Library a copy of the data on rateable values used as the basis of the statement on page 10 of his Department's consultation paper on transitional arrangements for the non-domestic rating revaluation 2010 in England that the 2010 revaluation will result in more ratepayers seeing reductions in bills (60 per cent. of ratepayers) than increases (40 per cent. of ratepayers). (289907)

Before inflation, the 2010 business rates revaluation will reduce the rates bill for 1,028,500 properties and increase the rates bill for 677,800 properties. After rounding, this represents 60 per cent. and 40 per cent. of properties, respectively. These figures are based on the same ratings list as used for the consultation document Transitional Arrangements for the Non-Domestic Rating Revaluation 2010 in England” published on 8 July 2009. The ratings list is a live database and is continually being updated (to reflect appeals, deletions, additions, physical alterations, splits and mergers).

To ask the Secretary of State for Communities and Local Government what estimate his Department has made of the total amount of business rates to be paid in respect of (a) properties and (b) large properties in each region in (i) 2009-10, (ii) 2010-11, (iii) 2011-12, (iv) 2013-14 and (v) 2014-15. (289908)

Details of the amount of National Non-Domestic Rates local authorities expect to collect in 2009-10 were published on 28 May in a Statistical Release that is available on the Communities and Local Government website at:

http://www.communities.gov.uk/publications/localgovernment/nondomesticrates200910f

Data are collected at local authority level but not by the size of the property. Data for other years are not available.

To ask the Secretary of State for Communities and Local Government (1) if he will place in the Library a copy of the data on rateable values used as the basis of the statement on page 12 of his Department's consultation paper on the transitional arrangements for the non-domestic rating revaluation 2010 in England that when transitional relief on the 2005 rating list ended on 1 April 2009 many businesses still faced large increases to their full bill; (289909)

(2) what estimate his Department has made of the number of 100,000 former recipients of transitional relief receiving significantly higher 2009-10 rates bills, referred to in his Department's Explanatory Memorandum to the Non-Domestic Rating (Deferred Payments) (England) Regulations 2009, which were (a) small and (b) large properties in each region; and what the average percentage increase was in bills in respect of those properties in 2009-10.

The statement on page 12 of the consultation paper “Transitional Arrangements for the Non-Domestic Rating Revaluation 2010 in England” was based on information contained in the August 2004 consultation paper “NNDR Transitional Arrangements: Consultation” which stated that 3,750 large properties and 90,000 small properties would benefit from transitional relief in the fourth year of the scheme. No estimates are available for the regional split.

The earlier consultation paper can be found in the following link:

http://www.communities.gov.uk/documents/localgovernment/pdf/430100.pdf

The amount of transitional relief awarded in 2008-09 was £99 million. We do not collect data on the number of properties that received that relief.

To ask the Secretary of State for Communities and Local Government what the overall percentage change in the rateable value of (a) small and (b) large properties will be in each region under the 2010 rates revaluation. (289910)

The table shows the overall percentage change in the rateable value of small and large properties in each region under the 2010 revaluation.

A small property is defined as having a rateable value less than £18,000, or £25,500 in London. This is the definition proposed in the 2010 Transitional Relief consultation document published on 8 July 2009.

The analysis uses data from the Local List only; properties on the Central List are excluded.

Percentage change in rateable value

Government Office Region

Small properties

Large properties

North East

13.9

19.4

North West

15.8

16.9

Yorkshire and the Humber

14.7

18.6

East Midlands

2.1

8.3

West Midlands

11.1

11.6

East of England

16.3

16.0

London

23.7

32.2

South East

11.8

13.5

South West

23.4

22.8

England (Local List only)

15.8

20.0

To ask the Secretary of State for Communities and Local Government what methodology his Department used to calculate the increase in the small business rateable value threshold for (a) London and (b) elsewhere referred to on page 10 of his Department’s consultation paper on transitional arrangements for the non-domestic rating revaluation 2010 in England. (289911)

The thresholds to be used in the 2010 transitional arrangements for large and small properties have been calculated by taking the same thresholds from the 2005 scheme, increasing them by the overall percentage increase in rateable values at the 2010 revaluation and then rounding them to the nearest £500. These figures are based on the same ratings list as used for the consultation document Transitional Arrangements for the Non-Domestic Rating Revaluation 2010 in England” published on 8 July 2009. The ratings list is a live database and is continually being updated (to reflect appeals, deletions, additions, physical alterations, splits and mergers).

To ask the Secretary of State for Communities and Local Government how many deletions from the ratings list have been made in each region in each year from 2004-05 to 2009-10; and what the total rateable value was of such deletions in each such year. (289912)

The information is contained within the following table:

Assessments deleted1 from the 2000 and 2005 rating lists as at 31 July 2009

Government region

Year

Rating list

Number assessments

Rateable value

East Midlands

April 2004 to March 2005

2000 Rating List

2,916

30,398,443

East Midlands

April 2005 to March 2006

2005 Rating List

2,826

39,787,299

East Midlands

April 2006 to March 2007

2005 Rating List

2,757

36,129,261

East Midlands

April 2007 to March 2008

2005 Rating List

3,048

41,483,065

East Midlands

April 2008 to March 2009

2005 Rating List

3,075

51,895,099

East Midlands

April 2009 to March 2010

2005 Rating List

875

13,738,991

East Midlands total

15,497

213,432,158

East of England

April 2004 to March 2005

2000 Rating List

3,537

49,827,682

East of England

April 2005 to March 2006

2005 Rating List

3,583

65,885,305

East of England

April 2006 to March 2007

2005 Rating List

3,601

62,652,649

East of England

April 2007 to March 2008

2005 Rating List

4,046

64,319,289

East of England

April 2008 to March 2009

2005 Rating List

3,938

83,957,242

East of England

April 2009 to March 2010

2005 Rating List

991

18,332,412

East of England total

19,696

344,974,579

London

April 2004 to March 2005

2000 Rating List

6,157

422,044,961

London

April 2005 to March 2006

2005 Rating List

5,981

220,307,586

London

April 2006 to March 2007

2005 Rating List

6,928

297,295,804

London

April 2007 to March 2008

2005 Rating List

7,652

321,816,042

London

April 2008 to March 2009

2005 Rating List

7,985

294,874,526

London

April 2009 to March 2010

2005 Rating List

2,023

61,508,545

London total

36,726

1,617,847,464

North East

April 2004 to March 2005

2000 Rating List

1,513

13,305,049

North East

April 2005 to March 2006

2005 Rating List

1,508

22,736,020

North East

April 2006 to March 2007

2005 Rating List

1,678

21,876,766

North East

April 2007 to March 2008

2005 Rating List

1,607

31,516,786

North East

April 2008 to March 2009

2005 Rating List

1,669

33,387,299

North East

April 2009 to March 2010

2005 Rating List

532

6,766,727

North East total

8,507

129,588,647

North West

April 2004 to March 2005

2000 Rating List

5,293

57,247,295

North West

April 2005 to March 2006

2005 Rating List

5,098

62,974,039

North West

April 2006 to March 2007

2005 Rating List

4,981

68,810,272

North West

April 2007 to March 2008

2005 Rating List

5,582

89,658,351

North West

April 2008 to March 2009

2005 Rating List

5,828

105,989,797

North West

April 2009 to March 2010

2005 Rating List

1,767

31,218,774

North West total

28,549

415,898,528

South East

April 2004 to March 2005

2000 Rating List

5,232

81,451,428

South East

April 2005 to March 2006

2005 Rating List

4,887

103,447,565

South East

April 2006 to March 2007

2005 Rating List

4,885

104,021,083

South East

April 2007 to March 2008

2005 Rating List

5,157

112,603,829

South East

April 2008 to March 2009

2005 Rating List

5,361

125,570,746

South East

April 2009 to March 2010

2005 Rating List

1,525

30,431,408

South East total

27,047

557,526,059

South West

April 2004 to March 2005

2000 Rating List

4,569

31,213,242

South West

April 2005 to March 2006

2005 Rating List

4,389

47,005,559

South West

April 2006 to March 2007

2005 Rating List

4,336

46,106,217

South West

April 2007 to March 2008

2005 Rating List

4,972

52,777,633

South West

April 2008 to March 2009

2005 Rating List

4,868

69,491,427

South West

April 2009 to March 2010

2005 Rating List

1,298

17,850,427

South West total

24,432

264,444,505

Wales

April 2004 to March 2005

2000 Rating List

2,266

15,553,645

Wales

April 2005 to March 2006

2005 Rating List

2,269

23,561,379

Wales

April 2006 to March 2007

2005 Rating List

2,205

31,320,039

Wales

April 2007 to March 2008

2005 Rating List

2,574

25,227,448

Wales

April 2008 to March 2009

2005 Rating List

2,546

25,915,050

Wales

April 2009 to March 2010

2005 Rating List

622

9,305,793

Wales total

12,482

130,883,354

West Midlands

April 2004 to March 2005

2000 Rating List

3,390

45,381,231

West Midlands

April 2005 to March 2006

2005 Rating List

3,514

60,262,742

West Midlands

April 2006 to March 2007

2005 Rating List

3,767

64,893,836

West Midlands

April 2007 to March 2008

2005 Rating List

3,922

74,134,718

West Midlands

April 2008 to March 2009

2005 Rating List

4,107

89,269,673

West Midlands

April 2009 to March 2010

2005 Rating List

1,162

17,367,210

West Midlands total

19,862

351,309,410

Yorkshire and the Humber

April 2004 to March 2005

2000 Rating List

4,008

37,935,653

Yorkshire and the Humber

April 2005 to March 2006

2005 Rating List

3,991

48,377,188

Yorkshire and the Humber

April 2006 to March 2007

2005 Rating List

3,852

42,499,948

Yorkshire and the Humber

April 2007 to March 2008

2005 Rating List

4,450

57,583,166

Yorkshire and the Humber

April 2008 to March 2009

2005 Rating List

4,481

70,082,585

Yorkshire and the Humber

April 2009 to March 2010

2005 Rating List

1,249

24,213,342

Yorkshire and the Humber total

22,031

280,691,882

Total

April 2004 to March 2005

2000 Rating List

38,881

784,358,629

Total

April 2005 to March 2006

2005 Rating List

38,046

694,344,682

Total

April 2006 to March 2007

2005 Rating List

38,990

775,605,875

Total

April 2007 to March 2008

2005 Rating List

43,010

871,120,327

Total

April 2008 to March 2009

2005 Rating List

43,858

950,433,444

Total

April 2009 to March 2010

2005 Rating List

12,044

230,733,629

Total

214,829

4,306,596,586

1 Excludes all reconstituted deletions and property effected by boundary or address changes.

To ask the Secretary of State for Communities and Local Government if he will place in the Library a copy of the data on rateable values used as the basis for the statement in his Department's press releases of 8 July 2009, Government consults on help with business rate bills, that as a result of revaluation and the relief arrangements one million businesses will see an average decrease of £770 in 2010-11. (289913)

The 2010 business rates revaluation will reduce the rates bill for 1,028,500 properties. In total their rates bill will fall by £787,660,000 in 2010-11 after transitional relief but before inflation. That is an average, after rounding, of £770 per property. These figures are based on the same ratings list as used for the consultation document “The Transitional Arrangements for the Non-domestic Rating Revaluation 2010 in England” published on 8 July 2009. The ratings list is a live database and is continually being updated (to reflect appeals, deletions, additions, physical alterations, splits and mergers).

To ask the Secretary of State for Communities and Local Government how much of the costs to Government of the Non-Domestic Rating (Deferred Payments) (England) Regulations 2009, referred to in the impact assessment for those Regulations are attributable to (a) bad debt and (b) the value of the discounted repayments being less than the value of the deferred amount. (289915)

The Impact Assessment to accompany the Non-Domestic Rating (Deferred Payments) (England) Regulations estimated that between 50 per cent. and 90 per cent. of businesses will choose to defer the increase in their rates bill in 2009-10; and the percentage of revenue that could be written off as bad debt could be between 1 per cent. and 5 per cent. of the total amount deferred. On this basis, the amount of bad debt is estimated to be between £2 million and £20 million in both 2010-11 and 2011-12.

Using the standard discount rate of 3.5 per cent. and assuming between 50 per cent. and 90 per cent. of businesses take up the option to defer the increase in business rates in 2009-10 and that between 1 per cent. and 5 per cent. of payments will be written off as bad debt, the final net present value of the deferral scheme to Government is estimated at between £20 million and £80 million. The rationale behind the standard discount rate can be found in annex 6 of HM Treasury's Green Book.

To ask the Secretary of State for Communities and Local Government what percentage of payments due under (a) the business rates deferral scheme and (b) transitional arrangements for the non-domestic ratings revaluation 2010 his Department expects to be written off as bad debt. (289916)

The Impact Assessment accompanying the Non-Domestic Rating (Deferred Payments) Regulations states that the amount of revenue written off as bad debt resulting from ratepayers choosing to defer the increase in their business rates could be between 1 per cent. and 5 per cent. of the total amount deferred.

No estimate has been made of the percentage of payments that are expected to be written off as bad debt as the transitional arrangements themselves do not lead to any outstanding liabilities which are at risk of bad debt.