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Non-domestic Rates: Garages and Petrol Stations

Volume 505: debated on Friday 5 February 2010

To ask the Secretary of State for Communities and Local Government (1) how many petrol retail outlets have had a reduction in their rateable value for the purpose of calculating the business rate to come into effect from 1 April 2010; (311046)

(2) how many petrol retail outlets have been notified that their rateable value (a) has been reduced, (b) remains unchanged and (c) has risen by over (i) 10 per cent., (ii) 50 per cent., (iii) 100 per cent., (iv) 150 per cent., (v) 200 per cent., (vi) 250 per cent., (vii) 300 per cent. and (viii) 350 per cent. for the purpose of calculating the business rate to come into effect on 14 April 2010.

All petrol retail outlets have been sent a summary valuation of their property from the Valuation Office Agency which explains and illustrates how their rateable value has been calculated. Ratepayers have been invited to contact their local valuation officer if they think the information in the summary valuation is incorrect.

The following table is for petrol filling stations with a with a Special Category Valuation Office Agency (VOA SCAT) code of 209 in England only. All numbers have been rounded to the nearest 10.

These figures include all property recorded as petrol filling stations using VOA SCAT Code 209. It is not possible to identify and include in the figures hypermarkets and other properties retailing petrol. These are recorded under other SCAT codes.

Percentage change

Number of hereditaments

Decrease

480

No change

0

Equal to or less than 10 per cent.

480

Increases of more than 10 per cent., less than or equal to 50 per cent.

1630

Increases of more than 50 per cent., less than or equal to 100 per cent.

1550

Increases of more than 100 per cent., less than or equal to 150 per cent.

720

Increases of more than 150 per cent., less than or equal to 200 per cent.

320

Increases of more than 200 per cent., less than or equal to 250 per cent.

180

Increases of more than 250 per cent., less than or equal to 300 per cent.

90

Increases of more than 300 per cent., less than or equal to 350 per cent.

70

Increases over 350 per cent.

130

Note:

The percentage change in a property's rateable value is not the same as the percentage change in its rates bill. Our £2 billion transitional relief scheme will ensure that in 2010-11 no business property sees its rates bill increase by more than 11 per cent. as a result of the revaluation, with maximum increases capped at just 3.5 per cent. for small properties.

These data are consistent with the statistical release entitled ‘Non-domestic rateable values: 2010 Local Rating Lists—England and Wales’, published on 18 December 2009. A copy of this statistical release is available at the following link:

http://www.voa.gov.uk/publications/statistical_releases/VOA_Statistics_Release_Final.pdf

The data exclude petrol retail outlets in hypermarkets/superstores.

In the last five years, alongside rising petrol prices and increasing turnover, the rents paid on many petrol filling stations has grown. It is only fair to all ratepayers this is reflected in rate bills.

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 percentage increase in rateable value does not necessarily result in a similar increase in rates liability. As the total rateable value for the whole country is increasing by approximately 20 per cent., only businesses with an increase over this figure will see an increase in their bills.

The Government intend to put in place a £2 billion relief scheme to limit the impact on the minority with bill increases, which in 2010-11 will ensure no business property sees its rates bill increase by more than 11 per cent. as a result of the revaluation, with maximum increases capped at just 3.5 per cent. for small properties. 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.