Majority to see fall in business rates bill
Sixty per cent of businesses will see a fall in their business rate bills next year, according to the Department for Communities and Local Government (CLG).
However the Valuation Office Agency (VOA), the body in charge of compiling and maintaining business rate values, has confirmed that slight increases of, on average, three per cent in London and one per cent in the South West, are likely.
A government consultation on a £2bn relief scheme to support the minority of businesses who could experience a rates rise, will end on September 23. It has proposed a cap of no more than a five per cent increase for small businesses in 2010-11 and no more than 12.5 per cent for medium and large businesses.
Licensees will be able to check what their new bill will be from October ahead of their introduction on April 1. Valuations will be posted to each property or can be checked online at www.voa.gov.uk/2010.
Current business rates are based on the rateable value of each property from a valuation date of April 1 2003. However 2010 rates will use a valuation date of April 1 2008, before the full effects of the economic downturn were felt on market rental values, on which rates are based.
A VOA spokesman said: "Valuing at a 'high' point does not mean increased bills because the other factor used with the rateable value to work out the bill - the multiplier - is adjusted to ensure that revaluation does not raise extra money from business rates.
"Sixty per cent of businesses will see a reduced rates bill as a result of this revaluation because it's just about redistributing what businesses pay in line with market changes, which keeps the system fair."
Licensees can estimate their 2010 bill at www.businesslink.gov.uk/estimatemyrates.
