1. Business Rates Revaluation and Reliefs
Mark Maidment
Director of Resources and Deputy Chief Executive
Graham Russell
Assistant Director of Resources (Revenues)

2. Background(1)
Rates charged on businesses based on Rateable Value (RV), assessed by Valuation Office Agency, and multiplier set by Government
RVs can change due to appeals etc but Government periodically revalues all properties in the country

3. Background(2) 2017 Revaluation
For Richmond the average increase in RV was 14.4%
Big variations depending on type of property:
Shops 5.3%
Offices 10.8%
Factories / workshops 41.4%
Universities 79.7%
Cemeteries 89.4%

4. Changes w.e.f. 1st April 2017 Description Pre-revaluation
Post revaluation
Standard multiplier
49.7p
47.9p
Small Business multiplier
48.4p
46.6p
Limit for Small Business Multiplier
£25,500
£51,000
SBRR 100% relief
Up to £6,000
Up to £12,000
SBRR tapered relief
£6,000 - £12,000
£12,000 - £15,000

5. Transitional Relief
If your bill is increasing the TR scheme limits the increase
Rateable Value
2017/18
2018/19
2019/20
2020/21
2021/22
Up to £28,000
5.0%
7.5%
10.0%
15.0%
£28,001 to £100,000
12.5%
17.5%
20.0%
25.0%
Over £100,000
42.0%
32.0%
49.0%
16.0%
6.0%

6. Transitional Relief
If your bill is decreasing the TR limits the reduction
Rateable Value
2017/18
2018/19
2019/20
2020/21
2021/22
Up to £28,000
20.0%
30.0%
35.0%
55.0%
£28,001 to £100,000
10.0%
15.0%
25.0%
Over £100,000
4.1%
4.6%
5.9%
5.8%
4.8%

7. Further measures
In his Spring Budget, the Chancellor announced a package of 3 further measures intended to mitigate the impact of the revaluation:
Supporting Small Businesses
New Business Rate Relief Scheme for Pubs
New Discretionary Relief Scheme
REMEMBER SCHEMES NOT CONFIRMED…….

8. Supporting Small Businesses
Relief for businesses facing the loss of some, or all, of their Small Business Rate relief
Increase in bill is limited to the greater of £600 or the matching cap on increases for small properties in the TR scheme
We estimate that only 35 businesses will be affected in Richmond

9. Support for Pubs
Pubs with a RV of less than £100k may receive a discount of £1,000 on their bill
Government intends to publish a consultation on the operation of the scheme shortly

10. Local Discretionary Relief Scheme
Government has allocated £330m nationally. Richmond gets £1.1m for the scheme over 3 years (£0.67m yr1, £0.32m yr2, £0.13m yr3)
…….note steep reductions after yr1
Intended to support
ratepayers or localities that face the most significant increases in bills; and
ratepayers occupying lower value properties

11. Possible criteria
Property has suffered an increase in bill because of the revaluation
RV is between £15,000 and £200,000
Business is not part of a chain (including franchises)
You have no more than 2 properties anywhere in the UK
Receiving the relief would not mean that you breach State Aid rules
The business does not fall in any of the following categories:
Financial Services (Banks, building societies, cash points, bureau de change, payday lender, betting shops, pawn brokers)
Medical services
Sex establishment
Currently receiving Mandatory Charitable Relief
Funded by Central Government or agency thereof

12. Possible criteria (locality)
Number of empty units
Number of bankruptcies / business failures
Links to identified areas of uplift / improvement
....but data not straight forward, consistent or necessarily related to rate increases…..

13. Possible payment methods
Flat rate reduction for any business suffering an increase in its bill subject to a maximum equivalent to the increase in bill
As above but with no maximum
Flat rate reduction for any business in receipt of TR subject to a maximum reduction equivalent to the increase in bill
Reduction pro rata to TR received
Reduction pro rata to increase in bill after TR
Each method affects businesses differently
REMEMBER – STILL ONLY PROPOSED SCHEME

14. Questions / Comments / Discussion