Business Rates and the Recession

As the system stands, that would be the effect on the business rates multiplier for the following year, if RPI is negative in September. The multiplier is capped each year by RPI—inflation. Through the cap and by setting rateable values for a five-year period, we can give businesses certainty about the level of their business rate liability. In addition, where we think there is a strong case, we have been ready to introduce reliefs to make the system fairer still. There are now mandatory reliefs for charities and community amateur sports clubs of at least 80 per cent., which last year were worth almost £800 million to those bodies. We introduced rural rates relief, which has been available since 1998. Pubs and post offices in rural areas can get 50 per cent. rate relief. I have to say that the Conservative party opposed the legislation that introduced that relief.