HC Deb 01 November 1994 vol 248 cc1006-9W
Mr. Butcher

To ask the Secretary of State for the Environment (1) if he will estimate the number of hereditaments where the transition for the 1990 change is likely to be incomplete at 31 March 1995 but is likely to be (i) complete and (ii) more nearly complete at 1 April 1995 by virtue of a reduction in the rateable value from the date;

(2) how many hereditaments in England which currently fall (a) below and (b) above the threshold of rateable value, for determining whether the lower limit on year-on-year increases in non-domestic rates bills applies, there are estimated to be for which the transition to the rateable value and national non-domestic rate introduced in April 1990 will not have been completed at 31 March 1995; and if he will estimate (i) the average percentage and (ii) the aggregate amount by which the 1994–95 rates bills for those hereditaments falls below the amount which would have been payable without transitional relief.

Mr. Curry

The information about properties in England which are currently in transition is contained in the table. Assuming for illustrative purposes that the rate poundage is unchanged in real terms between 1994–95 and 1995–96, preliminary results from the 1995 revaluation suggest that 35,000 of an estimated 330,000 properties in transition at 31 March 1995 would find themselves with no further increase next year and 50,000 would be closer to reaching their full liability than they are now.

Source: Inland Revenue: estimates rounded to nearest 5,000.

Mr. Butcher

To ask the Secretary of State for the Environment (1) what studies he has commissioned, internally and from external consultants, of the likely impact of the April 1995 revaluation of non-domestic property in England on rateable values and non-domestic rate bills in different regions and different sectors of the economy; if he will publish those studies, or summary thereof; and if he will make a statement;

(2) if he will list the regions, sectors and types of hereditament most affected by large increases or decreases in non-domestic rates.

Provisional estimates of impact of 1995 revaluation on rateable value. Average percentage increase (+)/decrease (-) in 1995 list RV compared with 1990 list RV
Region Property type
Shops Offices Warehouses Factories Other All
South west +7 +13 +12 +2 +17 +11
Rest of South east +2 –12 +7 +2 +12 +2
East Anglia +12 +14 +9 +3 +15 +11
North west +31 +51 +46 +31 +21 +32
Northern +30 +50 +43 +20 +16 +24
East Midlands +22 +35 +21 +15 +17 +20
West Midlands +31 +54 +49 +40 +9 +34
Yorkshire and Humberside +27 +56 +32 +23 +14 +26
Inner London –16 –59 –14 –14 –3 –40
Outer London +12 –5 +5 –8 +13 +5
All +10 –29 +17 +13 +13 +1

Source:

Inland Revenue

Note:

All number are still subject to change, possibly significant, as the revaluation work progresses.

Mr. Butcher

To ask the Secretary of State for the Environment how many hereditaments in England which fall(a) below and (b) above the threshold rateable value, for determining whether the lower limit on year-on-year increases in non-domestic rates bills applies, there are estimated to be whose rates bills for 1995–96 in the absence of transitional relief and assuming the rate poundage as adjusted for the revaluation is indexed for inflation would be (i) under 50 per cent., (ii) between 50 and 80 per cent., (iii) between 80 and 120 per cent., (iv)

Estimated increase or decrease in rate bills in England between 1994–95 and 1995–96 as a result of the 1995 revaluation, in the absence of transitional relief
1995–96 bills as a percentage of 1994–95 bills Small properties Large properties Total
Number (000s) Change in bills £ million Number (000s) Change in bills £ million Number (000s) Change in bills £ million
<50 10 —320 15 –730 25 –1050
50–80 35 –80 25 —315 60 –400
80–120 335 45 145 105 500 150
120–200 695 670 165 1130 865 1805
200–500 145 220 20 345 165 565
>500 10 40 90 10 130
Total 1255 575 370 625 1630 1200

Source:

Inland Revenue

Notes:

  1. 1. Figures are rounded to nearest 5 units. ('—' means less than 3 units).
  2. 2. Totals may not sum due to rounding.
  3. 3. Small properties have a 1 April 1990 rateable value less than £10,000 (£15,000 in London).

Mr. Curry

The Inland Revenue is analysing the results of the revaluation as they come in. Although numbers are subject to change, our current estimate of the effect of the revaluation on rateable values is given in the table. The effect on rates bills will depend on the multiplier which is determined for 1995–96, and on the final form of our proposed transitional arrangements for the 1995 revaluation, details of which are contained in a consultation paper that we issued on 3 October. Copies of the consultation paper are in the Library and we expect to announce our decisions by the end of November.

between 120 and 200 per cent., (v) between 200 and 500 per cent. and (vi) over 500 per cent. of their bills for 1994–95; and if he will estimate for each of those categories the aggregate increase or decrease in the rates bills between the two years.

Mr. Curry

Estimates for England based on preliminary results of the 1995 revaluation are given in the table. It has been assumed for illustrative purposes that the rate poundage is unchanged in real terms between 1994–95 and 1995–96.

Mr. Butcher

To ask the Secretary of State for the Environment if he will list the regions, sectors and types of hereditament where there is the greatest incidence of incomplete transition to the rateable value and national non-domestic rate introduced in April 1990.

Mr. Curry

The greatest incidence of property in England currently remaining in transition under the 1990

Percentage of properties estimated to be in transition in inner London area as at 31 March 1995
Properties in transition as a proportion of total number of properties in each class per cent.
Size Shops Offices Warehouses Factories Other
Small 50 35 40 30 50
Large 60 30 20 20 60

Source:

Inland Revenue

Note:

Small properties have a 1 April 1990 rateable value less than £10,000 (£15,000 in London).

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