AS those on low fixed incomes continue to pay several times the rate of inflation in Council Tax rises, what happens to the business community? Their contribution to the Rates is known as the Uniform Business Rate. Although it is paid to their local c

AS those on low fixed incomes continue to pay several times the rate of inflation in Council Tax rises, what happens to the business community? Their contribution to "the Rates" is known as the Uniform Business Rate. Although it is paid to their local councils, the money all goes to the Government, which passes some of it back to local councils through a totally impenetrable formula.

Part of your district council and county council income is labelled NNDR, the National Non-Domestic Rates pool.

The amount given to any authority has no particular mathematical relationship with the business rates collected in that authority's area.

So how is the contribution of an individual business calculated and invoiced?

Every non-domestic property has a rateable value unless it is exempt. The local council works out a business rates bill by multiplying its rateable value by a multiplier which the Government sets each April for the whole of England.

Each business is revalued by the Valuation Office Agency every five years. The last revaluation was in 2005. After a revaluation, the multiplier is adjusted so that the total amount raised by the Business Rates will not increase by more than the rate of inflation.

In between revaluations, the multiplier is not allowed by law to increase by more than the rate of inflation.

Businesses get a much better deal than OAPs and other members of the public on low fixed incomes when it comes to funding the services of local councils.