§ Miss McIntoshTo ask the Secretary of State for Transport, Local Government and the Regions how the amount that farmers incur in business rates when undertaking contractual work is calculated. [33930]
§ Dawn Primarolo[holding answer 6 February 2002]: I have been asked to reply.
The amount farmers incur in business rates, if they undertake contract farming work, is calculated by reference to the rateable value, as determined by the Valuation Officer, multiplied by the business rate poundage (currently 43.0 pence in the pound).
The Valuation Officer calculates rateable values in accordance with the definition contained within the Local Government Finance Act 1988. Broadly speaking, this is the rental value of the property, vacant and to let, at the valuation of 1 April 1998. The Valuation Officer will base his or her valuation on rental evidence of similar buildings in the local area or by reference to the closes comparison.