HC Deb 30 October 1990 vol 178 cc470-1W
Sir Hugh Rossi

To ask the Secretary of State for the Environment by how much he expects business rate bills to rise in 1991–92.

Mr. Portillo

In 1991–92, 20 per cent. of businesses will still be gaining from the revaluation and the introduction of the UBR in cash and real terms. Around 45 per cent. of businesses will have reached their full new rate bill and will face no further real terms increases.

The remaining 35 per cent. of businesses will still be benefiting from the transitional arrangements which were introduced when the new system came into effect on 1 April 1990. Of these, only one fifth—7 per cent. of all businesses—will face the maximum transitional increase of 20 per cent. in real terms.

These figures compare very favourably with the old system where, between 1979–80 and 1989–90, locally set non-domestic rate poundages rose nationally by an average of 37.4 per cent. in real terms.