The 2010 Rating Revaluation

 

The Government published on 8th July the first results of the 2010 rating revaluation in England together with proposals for transitional arrangements for the 2010 rating list. We are told that, overall, the revaluation does not raise extra revenue and ‘as a result of revaluation and the relief arrangements the majority (60%) of businesses will see a fall in next year's bill and one million businesses will see an average decrease of £770'. According to government, the proposed schemes for transitional arrangements would help nearly ½ million businesses providing a total of £2 billion of relief for those facing increases. The Government is seeking views on a £2 billion relief scheme to support businesses that could see their rates increase as a result of the revaluation.

 

Key Points:

The Government is not aiming to collect any extra revenue as a result of the 2010 rating revaluation – which are linked to rental values. The next revaluation takes effect from 1 April 2010.

 

‘In 2010/11 as a result of revaluation and the relief arrangements:

• Overall the majority of small properties will see reductions in bills because of revaluation 2010.  We are protecting those small properties with increases through generous relief proposals that will cap any increases at 5% in 2010 before inflation, or potentially 2% after inflation
  
• High street retailers will be largely unaffected, with sectors such as shops seeing potential cuts in rates bill - figures show an average 1% reduction. However, large supermarkets are likely to see increases given their growth in property value since the last revaluation in 2005
  
• The industry and manufacturing sector – from large factories down to small workshops and start up units could see falls of 3% or £175 million
  
• All regions could see average rate bills fall or stay the same as a result of revaluation and the relief scheme, except London and the South West, which could on average see respective increases of 3% and 1% after transitional relief. London has seen the highest economic growth of any region, has the highest concentration of businesses, and makes a proportionate contribution through business rates
  
Furthermore, the high property market of April 2008, upon which rateable values are based, will not affect overall bills as there are parallel falls in the multiplier. We forecast that the small business multiplier will fall to 41.3p in 2010/11 before inflation. This could fall to as low as 40.0p, the lowest multiplier for 18 years, if inflation is -3% at September 2009'.

Further Details and Contacts: The consultation is available at the link below and also asks for views on the length of the scheme as well as how it should be funded:    Rating evaluation consultation