Rates bills set to fall after revaluation
THE majority of business rate bills in the East of England – over 100,000 – will fall next year as a result of revaluation, the Government has confirmed. The Government will not collect a penny more of extra revenue as a result of the 2010 revaluation. Re
THE majority of business rate bills in the East of England - over 100,000 - will fall next year as a result of revaluation, the Government has confirmed.
The Government will not collect a penny more of extra revenue as a result of the 2010 revaluation. Regular revaluations ensure the rate each business pays is fair and reflects changes in the relative value of property over time, it said.
The final arrangements for calculating new business rates bills suggest that 58 per cent of business properties in the East will see falls in their rate bills next year.
For the minority paying more, the Government is putting in place a �2billion relief scheme, self-funded by businesses, that will limit and phase in increases.
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Overall, as a result of revaluation and the relief arrangements, one million business properties will see an average decrease of �770 in 2010/11, the Department for Communities and Local Government claimed.
The Government recently announced that it would remove the requirement to reapply for small business rate relief at revaluation, reducing bureaucracy for small businesses and billing authorities - a move welcomed by the Federation of Small Businesses.
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East of England Regional Minister Barbara Follett said: "Revaluation makes sure each business pays its fair contribution and no more - it will not raise a single extra penny for Government.
"As a result of revaluation in the East of England over 100,000 business properties will see an overall reduction in their rate bills next year, with some of the largest decreases in sectors such as industry and manufacturing.
"While the majority of businesses will see benefits on their accounting sheets from revaluation, for the minority with increases we're today giving the go ahead for a �2billion relief scheme to limit the impact on bills.
"This is on top of the wider support available to help ease business pressures, including discounted rate bills for small businesses and deferring tax payments."
DCLG said measures the Government had taken to support businesses in the current climate included enabling businesses to delay their corporation tax, VAT and other payments; the Enterprise Finance Guarantee, helping businesses applying for bank loans; a �75million Capital for Enterprise Fund; regional loan transition funds from regional development agencies; free business health checks, and a commitment from Government to pay suppliers within 10 days.
The Government is also encouraging small businesses to apply for small
business rate relief, which can help provide up to 50 per cent off their bills.
Rateable values are only one part of the rates bill, DCLG added. The other is the ratings multiplier - which is applied to calculate final bills. This week, the Government said the multiplier had been reduced by 15 per cent - taking it to its lowest level for 17 years, to ensure the Government does not collect an extra penny from revaluation and that each business pays its fair contribution.
But the CBI called for a cap of 7.5 per cent on any increases generated by the revaluation. "Given the economic situation, a significant rise in business rates could make a critical difference to companies trying to survive the recession," the organisation said.