Other News
Government confirms majority of business rate bills will fall in the West Midlands
Sector:Local Government
Date Created:Wed 18th Nov 2009, 11:56:24
Source:Communities and Local Government
Link: http://www.communities.gov.uk
The majority of business rate bills in the West Midlands – more than one hundred thousand – will fall next year as a result of revaluation, the Government confirmed today.
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.
The final arrangements for calculating new business rates bills are being published today. Most business properties in the West Midlands (70 per cent) will see falls in their rate bills next year following revaluation.
For the minority paying more the Government is putting in place a £2 billion relief scheme self funded by businesses that will limit and phase in increases. The Government today is giving the go ahead for the relief scheme following a consultation.
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 Government recently announced that it will 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.
Local Government 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 West Midlands well over a hundred thousand business properties will see an overall reduction in their rate bills next year, with some of the largest decreases in vital 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 £2 billion 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.”
West Midlands Regional Minister Ian Austin added:
“This is good news for businesses in the West Midlands with 70% of them seeing falls in their rate bills following the revaluation.
“The West Midlands has been particularly hard hit by the economic downturn and an easing of overheads such as this could prove vital for businesses struggling to survive. Government is providing a raft of real help to support businesses including delaying payment to the revenue. In the West Midlands over 20,000 businesses are deferring nearly £370m in tax.”
Measures the Government has taken to support businesses in the current climate include 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 bill.
Rateable values are only one part of the rates bill. The other is the ratings multiplier - which is applied to calculate final bills. Today the Government is announcing the multiplier has been reduced by 15 per cent - taking it to its lowest level for 17 years. This is designed to ensure the Government does not collect an extra penny from revaluation and that each business pays its fair contribution.
