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Non-Domestic Rates

Volume 498: debated on Monday 26 October 2009

To ask the Secretary of State for Communities and Local Government what estimate he has made of (a) net and (b) gross revenue from business rates in (i) 1997-98, (ii) 2008-09, (iii) 2009-10 and (iv) 2010-11. (294463)

Details of the gross and net revenue (in £ millions) from business rates in (i) 1998-99, (ii) 2008-09, (iii) 2009-10 are shown in the following table. Data for 1997-98 are not available.

£ million

Gross revenue

Net revenue

1998-99

12,950

11,445

2008-09

20,638

19,072

2009-10

22,473

20,623

2010-11

23,445

Data for 1998-99, 2008-09 and 2009-10 are taken from the local lists and are collected on national non-domestic rates (NNDR1 and NNDR3) returns completed by all billing authorities in England. Data for 1998-99 and 2008-09 are outturn data; data for 2009-10 are budget data. NNDR data for 2010-11 are not yet available. However an estimate of the gross revenue for 2010-11 has been provided using the figure used in consulting on the 2010 revaluation transitional arrangements. This figure assumed zero inflation. No estimates have been made of the net revenue figure for 2010-11. The 2010-11 data were calculated on a different basis to those collected on the NNDR forms and so the figures are not strictly comparable.

The data for 2008-09 are published in Table 1 of the statistical release “National non-domestic rates collected by local authorities in England 2008-09”.

The data for 2009-10 are published in Table 1 of the statistical release “National non-domestic rates to be collected by local authorities in England 2009-10”.

Both these releases are available on the Communities and Local Government website at:

http://www.communities.gov.uk/localgovernment/localregional/localgovernmentfinance/statistics/nondomesticrates/

The data for 2010-11 are published in Table 1 of the consultation paper “The Transitional Arrangements for the Non-domestic Rating Revaluation” published on 8 July 2009. This paper can be found on the Communities and Local Government website at:

http://www.communities.gov.uk/publications/localgovernment/nndrrevaluation2010

Gross revenue is defined as the yield from non-domestic rates that could be collected in the year, irrespective of the year to which it relates, before the deduction of reliefs and before any allowances for the cost of collection.

Net revenue is defined as the yield from non-domestic rates that could be collected in the year, irrespective of the year to which it relates, after the deduction of reliefs and before any allowance for the cost of collection.

To ask the Secretary of State for Communities and Local Government what changes are proposed to the thresholds for (a) small business rate relief, (b) empty property rate relief and (c) supplementary business rates following the 2010 non-domestic rate revaluation. (294552)

The rateable value thresholds in the Small Business Rate Relief scheme will increase from 1 April 2010. Eligible businesses, who generally occupy only one property, with a rateable value of £6,000 or below (increased from £5,000) may apply for 50 per cent. relief. Eligible ratepayers with a rateable value between £6,001 and £12,000 (increased from £5,001 and £10,000 respectively) may apply for relief on a sliding scale between 50 and 0 per cent.. Eligible ratepayers with a rateable value between £12,001 and £17,999 or £25,499 in Greater London (increased from £10,001, £14,999 and £21,499 respectively) may apply for their rates liability to be calculated using the small business non-domestic multiplier. Additional properties with a rateable value up to £2,599 (increased from £2,199) can be disregarded in deciding whether the single occupancy criterion has been met. However, the rateable values of such properties are included in determining whether or not the threshold criterion has been met.

No decisions have been made on changes to the threshold for empty property relief as a result of revaluation 2010. Hereditaments with a rateable value of £50,000 or less will be exempt from the business rate supplements. In addition there is discretion within the Business Rate Supplements Act 2009 for levying authorities to increase the liability threshold.

To ask the Secretary of State for Communities and Local Government whether (a) a small firm and (b) a rural proofing impact assessment has been undertaken in respect of the 2010 rates revaluation. (294886)

Regular revaluations are a standard part of the business rates system and are required by statute. Therefore, no impact assessment has been undertaken by my Department on the overall implementation of the 2010 business rates revaluation. An impact assessment on the proposed transitional arrangements scheme for revaluation 2010 was published on 8 July and includes sections on rural areas and small firms.