RATES LIABILITY - 2009/2010

Rates payable by businesses are based on the rateable value multiplied by the Uniform Business Rate (UBR) - otherwise known as the "rate in the pound". The UBR is generally increased each April in line with the Retail Prices Index (RPI) dating from the previous September.

By a cruel coincidence, in September 2008 the rate of inflation was peaking at 5%. But by March 2009 the RPI had fallen to 0% leaving businesses facing a massive real rise in rates bills.

However, on 31st March 2009 the Chancellor announced that businesses would face only a 2% rise in rates bills for 2009/2010. The remaining 3% will be recouped in subsequent years.

New Regulations permitting this rates deferral should be in place by July 2009. In the interim, businesses must keep paying their liability as set out in bills already issued for 2009/2010. Local authorities should be writing to ratepayers soon offering them the option to defer payments once the Regulations are in place.

For many businesses there could still be time to check if the rateable value attributed to their premises is correct and so possibly reduce their rates bill. It is, however, important to consider carefully the full implications of submitting an appeal against a rateable value - rateable values can be increased by the Valuation Office if they are seen to be too low. Professional advice should therefore be taken. Jeffersons experienced rating team will be pleased to provide the necessary assistance.

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