What is Business Rates
Non-Domestic Rates, or business rates, collected by local authorities are the way that those who occupy a non-domestic property contribute towards the cost of local services.
Under the business rates retention arrangements introduced on 1 April 2013, the Council keeps a proportion of the business rates paid locally. The money that is retained is apportioned between the District Council, the County Council and the Fire Authority. This provides a direct financial incentive for the District Council and the County Council to work with local businesses to create a favourable environment for growth as they will both benefit from growth in business rates revenue.
This money, together with revenue from council tax payers, revenue support grant provided by the Government and certain other sums, is used to pay for the services provided by your local authority and other local authorities in your area. Further information about the business rates system, including transitional and other reliefs, may be obtained at http://www.gov.uk/
National Non-Domestic Rating Multiplier
The local authority works out the Business Rates bill by multiplying the rateable value of the property by the appropriate multiplier.
There are two multipliers; the standard non-domestic rating multiplier and the small business non-domestic rating multiplier. The former is higher to pay for small business rate relief.
The Government sets the multipliers for each financial year for the whole of England, except in the City of London where special arrangements apply, according to formulae set by legislation.
Between revaluations the multipliers change each year in line with inflation and to take account of the cost of small business rate relief. In the year of revaluation the multipliers are rebased to account for overall changes to total rateable value and to ensure that the revaluation does not raise extra money for Government.
The current multipliers are shown on the front of the bill.
Click here for a list of the Governments current and previous year multipliers.
Who pays Business Rates?