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Non-Domestic Rates

Volume 498: debated on Tuesday 27 October 2009

To ask the Secretary of State for Communities and Local Government how many hereditaments were on the Rating List with special category code (a) 227, (b) 226 and (c) 303 in each of the last five years, according to records held by the Valuation Office Agency. (292744)

The number of hereditaments in England with a special category (SCAT) code of (b) 226 (Public Houses/Pub Restaurants (National Scheme)) (a) 227 (Public Houses/Pub Restaurants (Inc. Lodge) (National Scheme)) and (c) 303 (Wine Bars) as at the appropriate dates is as follows:

England

226

227

303

1 April 2005

47,766

318

999

1 April 2006

47,398

335

1,020

1 April 2007

46,935

341

1,032

1 April 2008

46,417

347

1,023

1 April 2009

45,802

351

1,023

To ask the Secretary of State for Communities and Local Government pursuant to the answer to the hon. Member for Meriden (Mrs. Spelman) of 16 October 2009, Official Report, column 1131W, on non-domestic rates, whether the overall business rate tax yield in 2010-11 will be reduced in cash terms as a consequence of the -1.4 per cent. level of Retail Price Index inflation. (295731)

[holding answer 26 October 2009]: Under schedule 7 of the Local Government Finance Act 1988 the increases in the business rates multipliers each year are capped by the previous September's RPI. Under the same legislation, the multipliers will also be adjusted to ensure that the overall tax yield does not increase as a result of the 2010 revaluation. The September 2009 RPI of -1.4 per cent will exert a downward pressure on the multipliers and on 2010-11 rates bills, reducing the overall tax yield in cash terms.

The five-yearly business rates revaluations make sure each business pays its fair contribution and no more by ensuring the share of the national rates bill paid by any one business reflects changes over time in the value of their property relative to others. The 2010 revaluation will not raise a single extra penny for Government.

Over a million properties will see their business rate liabilities come down as a result of revaluation. The Government intend to put in place a £2 billion relief scheme to limit the impact on the minority with bill increases. This is on top of the wider support available to help ease business pressures including discounted rate bills for small businesses and deferring tax payments.

To ask the Secretary of State for Communities and Local Government pursuant to the answer to the hon. Member for Meriden (Mrs. Spelman) of 16 October 2009, Official Report, column 1131W, on non-domestic rates, whether he expects the downward pressure on multipliers as a result of the September 2009 Retail Price Index rate to result in an actual reduction in the multiplier of 1.4 per cent. in addition to the decrease in the multiplier due to the 2010 revaluation. (295732)

[holding answer 26 October 2009]: The multipliers are set in accordance with schedule 7 of the Local Government Finance Act 1988. The increases in the small business rate multiplier each year are capped by the previous September's RPI. Under the same legislation, the multipliers will also be adjusted to ensure that the overall tax yield does not increase as a result of the 2010 revaluation.

The national non-domestic multiplier, as in previous years, will be found by adding to the small business multiplier an amount to recover the cost of the small business rate relief scheme. The Government have no plans to amend the way that the multipliers are calculated.

The five-yearly business rates revaluations make sure each business pays its fair contribution and no more by ensuring the share of the national rates bill paid by any one business reflects changes over time in the value of their property relative to others. The 2010 revaluation will not raise a single extra penny for Government.

Over a million properties will see their business rate liabilities come down as a result of revaluation. The Government intend to put in place a £2 billion relief scheme to limit the impact on the minority with bill increases. This is on top of the wider support available to help ease business pressures including discounted rate bills for small businesses and deferring tax payments.

To ask the Secretary of State for Communities and Local Government pursuant to the answer to the hon. Member for Meriden (Mrs. Spelman) of 16 October 2009, Official Report, column 1131W, on non-domestic rates, what the (a) standard and (b) small business rate multiplier in 2010-11 in England is; on what date it was set; and whether it incorporates the 1.4 per cent reduction as a consequence of the September Retail Price Index rate. (295734)

[holding answer 26 October 2009]: The multipliers are set in accordance with schedule 7 of the Local Government Finance Act 1988. The increases in the small business rate multiplier each year are capped by the previous September's RPI. Under the same legislation, the multipliers will also be adjusted to ensure that the overall tax yield does not increase as a result of the 2010 revaluation.

The national non-domestic multiplier, as in previous years, will be found by adding to the small business multiplier an amount to recover the cost of the small business rate relief scheme. The Government have no plans to amend the way that the multipliers are calculated.

The Department will publish the provisional multipliers in due course and these will be confirmed after the Local Government Settlement is confirmed in the New Year.

To ask the Secretary of State for Communities and Local Government pursuant to the answer to the hon. Member for Meriden (Mrs. Spelman) of 16 October 2009, Official Report, column 1131W, on non-domestic rates, whether the estimate of (a) 41.3 pence for the small business multiplier in 2010 and (b) 41.7 pence for the national non-domestic multiplier in 2010 cited on page 7 of his Department's consultation paper on transitional arrangements for the non-domestic rating revaluation 2010 in England will be revised downwards as a consequence of the -1.4 per cent. level of Retail Price Index inflation. (295735)

[holding answer 26 October 2009]: Under schedule 7 of the Local Government Finance Act 1988 the increases in the small business rate multiplier each year are capped by the previous September's RPI. Therefore the September 2009 RPI of -1.4 per cent will exert a downward pressure on the multipliers cited in the Department's consultation on transitional arrangements.

The national non-domestic multiplier, as in previous years, will be found by adding to the small business multiplier an amount to recover the cost of the small business rate relief scheme.

The five-yearly business rates revaluations make sure each business pays its fair contribution and no more by ensuring the share of the national rates bill paid by any one business reflects changes over time in the value of their property relative to others. The 2010 revaluation will not raise a single extra penny for Government.

Over a million properties will see their business rate liabilities come down as a result of revaluation. The Government intend to put in place a £2 billion relief scheme to limit the impact on the minority with bill increases. This is on top of the wider support available to help ease business pressures including discounted rate bills for small businesses and deferring tax payments.