The Government today announced details of the transitional relief scheme for the 2010 revaluation.  The scheme will cap increases to rate bills over a 5 year period, and will be funded by capping reduction in other rates bills.  The caps will be structured as follows;

The maximum real increase in rates bill for a small property over 5 years will be 64%, and the maximum increase for a large property will be 147%.

The provisional non-domestic multiplier will be 41.4p in 2010/11, and the provisional small business non-domestic  multiplier for 2010/11 of 40.7p. The multiplier is likely to be confirmed in February of next year.

This is the lowest multiplier for 18 years, and in many cases rating liabilities will be decreasing at least in 2010/11.

Howard Elliott head of BDT’s rating department urges occupiers not to get lulled into a false sense of security as the multiplier in subsequent years will ratchet up at the rate of inflation.  “Just because a bill is decreasing, does not mean that it is not worthy of further investigation.  Rateable values need to be thoroughly investigated to check that they are accurate in all cases” he says.

Should you require any further information on your assessment please do not hesitate to contact Howard Elliott in our Basingstoke office.