Non-domestic Rates: Children’s Centres

Miss McIntosh
To ask the Secretary of State for Communities and Local Government (1) what level of business rates Sure Start children’s centres pay when located within primary schools;

(2) what level of business rates is paid by (a) maintained and (b) private, voluntary and independent nurseries when located within a primary school.

Mr. Woolas
All occupiers of non-domestic property, known as hereditaments, pay business rates as a way of contributing to a range of local services. Business rates are payable regardless of ownership and are based on the rateable value of the hereditament in question. The level of business rates payable by a ratepayer depends on the circumstances of the particular case. Depending on the facts, a building may for rating purposes constitute more than one hereditament. In such cases, the occupiers of those separate units would be liable for rates.

Rateable values are generally based on the assumed rent the property would attract if let on the open market on a specific date. These values are assessed by the Valuation Office Agency (VOA), an independent agency of HM Revenue and Customs, in line with well-established rating principles and methodology. If ratepayers disagree with the rateable value of their property, they may challenge it by making an appeal to the VOA.

We are aware that the impact of business rates is greater on small businesses compared with larger concerns. The small business rate relief scheme that we introduced with effect from 1 April 2005 therefore provides up to 50 per cent. rate relief for eligible properties irrespective of the use to which the property is put.