§ Ms WalleyTo ask the Chancellor of the Exchequer on what basis the Valuation Office has changed the basis for valuation for caravans; and what assessment he has made of the implications of the increase in the rateable assessment for caravans. [18667]
§ Mr. NelsonThe basis of assessment for business rates remains rental value. The last revaluation in 1990 had regard to April 1988 rental levels whereas for the 1995 revaluation assessments is based on valuation officers' opinions of values in April 1993. Valuation officers have also reconsidered their assessments of caravans so that they are more comparable with other classes of holiday accommodation.
The Government have considered the implications of substantial increases in rating assessments for various types of property and have introduced a scheme of transitional relief to ensure that no ratepayers will face increases of more than 10 per cent. plus inflation.