WIREDGOV

More than one million businesses are today finding out that their rate bills will fall next year as a result of the five yearly revaluation of business property.

The Valuation Office is letting businesses in England know their new rateable values ahead of bills being issued next March. Most businesses (60 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 £2bn relief scheme self funded by businesses that will limit and phase in increases.

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.

Overall, as result of revaluation and the relief arrangements, one million businesses will see an average decrease of £770 in 2010/11.

Local Government Minister Rosie Winterton said:

"The revaluation will make sure each business pays its fair contribution and no more - it will not raise a single extra penny for Government.

"Most businesses - a million in total - will see an overall reduction in their rate bills next year, with some of the largest decreases in 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 putting in place a £2bn 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."

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 £75m 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. And the Government has recently announced that it will remove the requirement to re-apply for small business rate relief at revaluation reducing bureaucracy for small businesses and billing authorities.

Notes to editors

1. The VOA is today making businesses aware of their rateable values as part of the 5 yearly revaluation of business rates.

Overall as a result of revaluation and transitional relief arrangements:

• High street retailers will be largely unaffected, with sectors such as shops seeing potential cuts in rates bill - figures show an average one per cent 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 three per cent or £175m
• All regions could see average rate bills fall or stay the same as a result of revaluation and transitional arrangements, expect London and the South West, which could on average see respective increases of 3 per cent and 1 per cent 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.

2. The table showing the effect of the 2010 revaluation before and after the £2bn transitional relief scheme can be found in Annex A of the Business rates information letter at www.communities.gov.uk/publications/localgovernment/bril102009.

3. The table showing the breakdown of the effect on the retail sector of the 2010 revaluation, before and after the transitional relief can be found in Annex A of the Business rates information letter at www.communities.gov.uk/publications/localgovernment/bril102009.

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