§ Mr. ButcherTo ask the Secretary of State for Wales how many hereditaments in Wales which fall(a) below and (b) above the threshold of £10,000 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 any 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) 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 rates bills between the two years.
§ Mr. Gwilym JonesEstimates for Wales based on preliminary results of the 1995 revaluation and assuming for illustrative purposes that the rate poundage is unchanged in real terms between 1994–95 and 1995–96 are given in the following table. In deciding on the actual poundage for 1995–96 my right hon. Friend will have regard to schedule 7 of the Local Government Act 1988, which requires him to take account of both the rise in inflation and the rateable value of all appropriate hereditaments on the last day of the 1990 list and the first day of the 1995 list so that the rate yield from the two lists will be broadly the same.
1059W
§ Mr. ButcherTo ask the Secretary of State for Wales if he will estimate the number of hereditaments where the transition for the 1990 changes is likely to be incomplete by 31 March 1995 but is likely to be(a) complete and (b) more nearly complete at 1 April 1995 by virtue of a reduction in the rateable value from that date.
§ Mr. Gwilym JonesAn estimated 19,000 hereditaments in Wales will be in transition on 31 March 1995 when the existing transitional arrangements expire. On the basis of preliminary results from the 1995 revaluation, and assuming the rate poundage rises in line with inflation, less than 1,000 would find themselves with no further increase next year and 1,000 would be closer to reaching their full liability than they are now.
§ Mr. ButcherTo ask the Secretary of State for Wales (1) if he will list the regions, sectors and types of hereditament most affected by large increases or decreases in bills for non-domestic rates;
(2) what studies he has commissioned internally and from external consultants, of the likely impact of the April 1995 revaluation of non-domestic property in Wales on rateable values and non-domestic rate bills in different regions and different sectors of the economy; if he will publish those studies or summaries thereof; and if he will make a statement.
§ Mr. Gwilym JonesThe Inland Revenue is analysing the results of the revaluation as they come in. Although numbers are subject to change, the current estimate of the effect of the revaluation on rateable values is given in the following table. The effect on rate bills will depend on the rate poundage which is determined for 1995–96 and the final form of the proposed transitional arrangements for the 1995 revaluation, details of which are contained in a Welsh Office consultation paper issued on 4 October. Copies of the consultation paper will be placed in the Library of the House. My right hon. Friend expects to announce his decisions by the end of November.
Provisional estimates of impact of 1995 revaluation on rateable values. Average percentage increase in 1995 list RV compared with 1990 list RV Number Shops 23 Offices 43 Warehouses 42 Factories 29 Other 16 All 25 Source: Inland Revenue.
1 All numbers are still subject to change, possibly significant, as the revaluation work progresses.
2 The information is not available on a regional basis for Wales.