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Non-Domestic Rates

Volume 502: debated on Wednesday 9 December 2009

To ask the Secretary of State for Communities and Local Government what the (a) small business multiplier and (b) national non-domestic multiplier was in (i) 2007-08, (ii) 2008-09 and (iii) 2009-10; and what the provisional multipliers are for 2010-11. (304889)

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:

Pence

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

To ask the Secretary of State for Communities and Local Government how much was collected in business rates after the deduction of reliefs in (a) 2007-08 and (b) 2008-09; and what estimate he has made of the equivalent figures in (i) 2009-10 and (ii) 2010-11. (304890)

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.

To ask the Secretary of State for Communities and Local Government what the percentage change in the (a) small business and (b) national non-domestic multiplier will be between 2009-10 and 2010-11; what proportion of this change is attributable to (i) changes in rateable value arising from the 2010 revaluation and (ii) the level of retail price index inflation in September 2009; and whether the percentage change in collectable rates and the relevant multipliers will match. (304891)

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.