§ Mr. ChopeTo ask the Secretary of State for Trade and Industry what estimate he has made of the impact upon the competitiveness of businesses in England and Wales of the increase in business rates for 2000–01. [100742]
§ Ms HewittThe purpose of the revaluation of non-domestic properties on 1 April 2000 is solely to update rateable values in line with changes in the property market since the previous revaluation in 1995 and to ensure they accurately reflect the relative rental value of properties. Although the total rateable value for England will increase—reflecting the improved state of the economy since the 1995 revaluation—the National Rate Multiplier will be reduced for the first time since it was introduced in 1990. Overall, the total amount collected in rates will be broadly the same in real terms as in 1999–2000.
A consultation exercise was undertaken on the need to introduce transitional arrangements to mitigate the impact of the 2000 revaluation of the rates bills of individual businesses. In their responses to the consultation paper—which included a draft Regulatory Impact Assessment—the vast majority of businesses supported the need, under the present arrangements, for a transitional relief scheme. The scheme announced on 25 November will place tight limits on the amounts that individual bills can rise as a result of the revaluation.