Business Rates in England & Wales

Multipliers effective 1st April 2020

£ =(£ x%- )

Annual Business Rates Bill

Rateable Value of Non-Domestic Property Multiplier Any Eligible Reliefs

£25.62 Billion*

To Be Collected in 2020/21

Source: Ministry of Housing, Communities & Local Government

* Before the effects of the enhanced retail discount - see page 9

Schedule 7 of the Local Government Finance Act 1988 (as amended) provides for two business rates multipliers in England. The small business multiplier, used for properties with a Rateable Value below £51,000, and the standard rating multiplier, used for the remaining non-domestic properties.

The small business multiplier is determined in accordance with

The net effect provides for a small business multiplier of 49.9p, with a standard multiplier of 51.2p; both effective from 1st April 2020.

Schedule 7 of the 1988 Act. The multiplier for 2020/21 is based upon the 2019/20 multiplier, adjusted for inflation in accordance with the Retail Price Index for September 2019 (unless HM Treasury exercises its power to provide for a lower increase by Order).

At the 2017 Autumn Budget, the Government confirmed that the annual uplift in business rates would be based on the lower headline rate of inflation (Consumer Prices Index) rather than the Retail Price Index, effective from 1st April 2018.

Her Majesty’s Treasury made an Order in Parliament to provide for that arrangement to continue for 2020/21.

Consumer Price Index (CPI), September 2019 - 1.7%

Source: ONS

Total Rateable Value in England

28%

Less than £51,000

More than £51,000

72%

Previous Years’ Business Rates Multipliers

2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21

Standard Small £0.56p £0.54p £0.52p £0.50p £0.48p £0.46p £0.44p £0.42p £0.40p

* The amount to be collected was an estimate on 31st January 2020. Additional reliefs will now be deducted from the 2020/21 forecasted yield. The tables below show the estimated costs of additional reliefs announced as part of the COVID-19 support package to businesses.

Estimated cost of COVID-19 rates reliefs

Cost of expanded retail discount Cost of nursery discount Cost of local newspaper relief Total estimated cost of additional reliefs in 2020/21 £10,060,966,496 £89,376,598 £170,326 £10,150,513,420

£1.14 Billion*

To Be Collected in 2020/21

Source: Welsh Government

* Before the effects of the enhanced retail discount - see page 9

From April 2018, the Welsh Government uprated the multiplier according to the Consumer Price Index. For the financial year 2020/21, the single multiplier for all properties will be uplifted to 53.5p.

Previous Years’ Business Rates Multipliers

£0.56p £0.54p £0.52p £0.50p £0.48p £0.46p £0.44p £0.42p £0.40p