Details of the small business rate multiplier and the national non-domestic rates multipliers for 2007-08 to 2009-10 are shown in the following table:
Small business rate multiplier National non-domestic rates multiplier 2007-08 44.1 44.4 2008,09 45.8 46.2 2009-10 48.l 48.5 2010-11 40.7 41.4
Details of the amount of non-domestic rates collected, after the deduction of reliefs, but before the deduction of the cost of collection or losses, in 2007-08 and 2008-09 and corresponding estimates for 2009-10 and 2010-11 are given in the following table.
£ million 2007-08 17,369 2008-09 19,072 2009-10 20,623 2010-11 20,791
The five-yearly business rates revaluations make sure each business pays its fair contribution and no more by ensuring that the share of the national rates bill paid by any one of them 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 the five years of the 2010 list because, although initially we will collect 1.5 per cent. more in 2010-11, this will be reduced in later years by appeals. Once all these appeals have been settled we expect the amount collected in 2010-11 to be less then that in 2009-10.
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. That is on top of the wider support available to help ease business pressures including discounted rate bills for small businesses and deferring tax payments.
The small business multiplier is 48.1p for 2009-10 and the provisional small business multiplier for 2010-11 is 40.7p. The percentage change between the two figures is -15.4 per cent.
An estimate of the small business multiplier based on zero inflation (i.e. considering only the effect of revaluation) was published in the ‘transitional arrangements for the non-domestic rating revaluation 2010 in England’ consultation document. A copy of the consultation document is available at the following link:
http://www.communities.gov.uk/publications/localgovemment/nndrrevaluation2010
Pence Percentage change when compared to 2009-10 2009-10 Small Business Multiplier 48.1 — 2010-11 Small Business Multiplier (zero inflation, as published in the consultation document) 41.3 -14.1 2010-11 Small Business Multiplier (including September 2009 RPI, and same assumptions as in the consultation document 40.7 -15.4
The national non-domestic multiplier is determined by adding a supplement to the small business multiplier to fund the estimated cost of the small business rate relief scheme. In 2009-10 this supplement was 0.4p, bringing the national non-domestic multiplier to 48.5p. For 2010-11, the supplement is estimated at 0.7p, bringing the provisional national non-domestic multiplier to 41.4p. The percentage change between the two is -14.6 per cent.
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. That is on top of the wider support available to help ease business pressures including discounted rate bills for small businesses and deferring tax payments.