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

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

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%

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

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%

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%

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…….

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

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

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

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

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…..

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

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