Government announces Multiplier for 2010/11 rates bills

The Government have now announced the basis of calculating companies rates bills for 2010/11. A rates bill is determined by multiplying the rateable value by a Uniform Business Rate (Multiplier) and this has now been confirmed. In some cases revised rates bills whether being increased or decreased are phased in over a period of years and this Transitional Relief Scheme has now also been confirmed.

The Government does not raise extra revenue as a result of the Revaluation and therefore the multiplier is actually being reduced from its current level as the total national rateable value has increased by between 15% and 20%.

The provisional small business non-domestic multiplier for 2010/11 is 40.7p which is a reduction from 48.1p for this rate year. There is a supplement on larger assessments to fund the estimated cost of the small business rate relief scheme and this is estimated at an additional 0.7p for 2010/11. The total provisional non-domestic multiplier will therefore be 41.4p in 2010/11.

The Scottish Government have also confirmed that their business rates poundage for 2010/11 will remain the same as England at 40.7 pence, the lowest national rate ever set for Scotland, although this could be tempered by less favourable transition than the current Revaluation.

The provisional multipliers will be finally confirmed after either the Local Government Finance report for 2010/11 has been approved by Parliament or 1^st March 2010.

There will be some winners and some losers caused by the forthcoming 2010 Revaluation but whatever the new liability, a review of the new rateable value is recommended.