Business Rates (Hansard, 13 December 2001)

§ Dr. Whitehead

No detailed assessment has been made of the reason for the change in the seasonal pattern of business rate receipts in England in(a) 2001–02 and(b) 2000–01. However, a comparison of the overall business rates receipts for the first two quarters of 2000–01 compared with the same quarters in 2001–02 is given in the table:

Business rate receipts	April to June	July to September
2000–01 (£ million)	4,357	4,040
2001–02 (£ million)	5,023	4,407
Percentage increase	15	9

The figures cover both receipts from the central list (collected by central Government) and from local lists (collected by local authorities). There are several factors that can influence the amount of business rates received from one year to the next. Some of them are likely to have led to overall increases in amounts received between 2000–01 and 2001–02, and others are likely to have led to overall decreases. Factors that are known to have influenced the pattern of business rates received in 2000–01 compared with so far in 2001–02 are described as follows:

(a) The total rateable value increased from £39,169 million in April 2000 to £41,807 million in April 2001;
(b) The multiplier increased from 41.6p in 2000–01 and to 43.0p in 2001–02. This increase was in line with changes in the Retail Prices Index, as required by legislation;
(c) The transfer of Crown properties to local lists in 2000–01 caused some delay to the issue of bills in that year. Consequently, in 2001–02 there has been a change in the pattern of business rate receipts as result of some Crown properties paying their bill in full at the start of the financial year;
(d) Similarly, the transfer of power stations from the central list to local lists from 2000–01 caused some delay to the issue of bills in that year. Consequently, business rate receipts for power stations are spread more evenly across the financial year in 2001–02 than they were in 2000–01, with a higher proportion being received in the first half of the year;
(e) The effects of foot and mouth disease, resulting in an increase in the amount of hardship relief granted, deferment of payment by business rate payers to help overcome short-term cash-flow difficulties and, on a slightly longer timescale, a reduction in rateable values.

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Other general factors that can influence business rate receipt levels in any year include:

(f) addition of new assessments to the rating list as a result, for example, of the opening of new large retail premises;
(g) other local difficulties, such as the closure of significant businesses in the area;
(h) late dispatch of bills; and difficulties faced by the introduction of new computer systems; and
(i) successful appeals on the rateable value, with refunds going back several years.