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5 Jan 2010 : Column 236W—continued
Non-Domestic Rates: Valuation
Mrs. Spelman: To ask the Secretary of State for Communities and Local Government what assessment he has made, other than by means of his Department's consultation on transitional relief, of the effects on businesses of the 2010 rating revaluation; and what estimate he has made of the likely level of non-payment of rates owing to business closures in 2010. [307883]
Barbara Follett: On 8 July 2009 my Department published Business Rates Information Letter number 10/2009 which contained information on the regional and sector impacts of the 2010 revaluation. On 17 November 2009 my Department published a final impact assessment on transitional arrangements scheme which included information about the impacts of the revaluation. And from 1 October 2009, ratepayers have been able to check their own new rateable value and check their new rates bill using the business rates calculator on the business link website.
We have made no estimate of the likely level of non-payment of rates in 2010 due to revaluation. 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 Government intend to put in place a £2 billion relief scheme to limit the impact on the minority with bill increases. 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.
Mrs. Spelman:
To ask the Secretary of State for Communities and Local Government what his most recent estimate is of the (a) gross cost before and (b)
net cost after the application of downward phasing of providing transitional relief in respect of business rate revaluation in each year of the 2010-15 rating cycle. [307884]
Barbara Follett: The following table shows the estimates of gross cost before and the net cost after the application of transition relief for each year of the 2010-15 cycle. The figures for the gross cost before the application of transition relief can be found on table 3 on Annex B of the "The transitional Arrangements for the Non-domestic Rating Revaluation 2010 in England" consultation document. The assumptions used for the purpose of this modelling are discussed in its Methodology annex. A copy of the consultation document is available at the following link:
The figures have been rounded to the nearest £5 million. This is consistent to what was used in the consultation document.
| £ million | ||
| Gross cost before transition | Net cost after transition | |
| (1 )All these figures are non zero. When rounding to the nearest £5 million, they round to zero. | ||
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 Government intend to put in place a £2 billion relief scheme to limit the impact on the minority with bill increases. 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.
Mrs. Spelman: To ask the Secretary of State for Communities and Local Government whether he expects the 2010 rates revaluation to be revenue-neutral across (a) the five year cycle and (b) in each year of that cycle. [307885]
Barbara Follett: For the 2010 revaluation the small business multiplier has been reduced to 40.7p to ensure that on 1 April 2010 (the first day of the 2010 rating list) the gross yield will be the same, in real terms, after allowing for future appeals, as the gross rates yield expected for 31 March 2010 (the last day of the 2005 rating list). Therefore, the process of introducing new rateable values on 1 April 2010 will be revenue neutral in real terms. Thereafter, the rates yield may vary in the normal way with, for instance, ongoing changes to the rating list.
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 Government intend to put in place a £2 billion relief scheme to limit the impact on the minority with bill increases. 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.
Robert Neill: To ask the Secretary of State for Communities and Local Government which 50 individual hereditaments in the South East had the biggest percentage change in rateable value between the 2005 Rating List and the draft 2010 Rating List; what the (a) location and (b) local authority area is of each; and what the rateable value of each is on each list. [308624]
Barbara Follett: The following table shows the rateable value on the 2005 Rating List and the draft 2010 Rating List for the 50 individual hereditaments in the South East Government Office Region that had the biggest percentage increase between the two lists, as at 2 November 2009.
These data are consistent with the statistical release titled: "Non-domestic rateable values: 2010 Local Ratings Lists-England and Wales", published on 18 December 2009. A copy of the statistical release is available at the following link:
No address information other than postcode is held in the dataset used for the analysis. The address, 2005 list rateable value and 2010 draft list rateable value from the live database for each hereditament in the central and local rating lists are published on the Valuation Office Agency's website. This information is updated weekly.
| Rank | Billing authority | Rateable value on the 2005 ratings list (£)( 1) | Rateable value on the draft 2010 ratings list (£) |
| (1) The figures are rounded to the nearest £1,000. | |||
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