HC Deb 14 March 1991 vol 187 cc667-8W
Mr. Beith

To ask the Secretary of State for the Environment what would be the cost of lowering the maximum permissible annual increase in uniform business rate bills in(a) nominal and (b) real terms (i) for small businesses, from 15 per cent. to 10 per cent. and (ii) for larger businesses, from 20 per cent. to 15 per cent., for the financial years 1990–91, 1991–92 and 1992–93.

Mr. Key

The estimated costs in England, to the nearest £5 million, are as follows:

Nominal (cash) terms
1990–91 1991–92
Small properties 25 40
Large properties 135 205

Real terms (1990 prices)
1990–91 1991–92 1992–93
Small properties 25 35 45
Large properties 135 185 185

No allowance has been made for changes to the rating lists since 1 April 1990 in making these estimates. Estimates for cash terms increases for 1992–93 have not been made because any increase in the cost in cash terms will be the result of an increase in the value of the multiplier for 1992–93, which will be determined in relation to the annual increase in the retail prices index in September 1991.

The maximum increase for small composite hereditaments, most commonly where the owner lives "over the shop", has already been changed. From 1 April 1991, the limit will be 10 per cent. for these properties. The cost of this change is estimated to be £5 million in each of 1991–92 and 1992–93.

Mr. Beith

To ask the Secretary of State for the Environment what would be the cost of increasing the threshold at which businesses are eligible for the small business category of uniform business rate transitional relief from a rateable value of £10,000 to £15,000 outside London and from a rateable value of £15,000 to £25,000 within London, for the financial years 1990–91, 1991–92 and 1992–93.

Mr. Key

The cost in England, in 1990 prices, is estimated to be £25 million in 1990–91 and £35 million in each of 1991–92 and 1992–93. These estimates take no account of changes to the rating lists since 1 April 1990.

Mr. Beith

To ask the Secretary of State for the Environment what estimates he has for the cost of allowing businesses to remain eligible for transitional relief from the uniform business rate although they move premises for the financial years 1990–91, 1991–92 and 1992–93.

Mr. Key

The estimated cost in England of allowing businesses to remain eligible for transitional protection when moving premises is, in 1990 prices, £60 million in 1990–91, and £75 million in each of 1991–92 and 1992–93. These estimates take no account of changes to the rating lists since 1 April 1990.