Information you need to know

Whilst the Rateable Value on your property tends to be a constant factor used in the calculation of your yearly rate demand, there are two other variables, which ultimately affect the rates you pay

These are:

1) The Rate Multiplier, or as most of us still prefer to call it the Rate in the Pound which is linked to the Retail Price Index and therefore changes annually.

2) Transitional Arrangements. The complicated set of calculations set by the government, which phase in increases or decreases in rate liability each year and often are the greatest cause of grief to our clients, as they are the hardest to understand!

The government uses the Rate of Inflation for each September as their benchmark for Rate Multiplier. The bad news for all of us is that inflation peaked at 5% at the end of September 2008. Unfortunately this means that we will almost certainly see a similar increase in the multiplier with effect from 1st April 2009.

Therefore we estimate that the Rate in the Pound will increase from 0.462 to 0.485 p next year.

If you are one of the few who qualify for small business rate relief you do of course benefit by way of a slightly discounted multiplier. This is currently 0.458, for rate year 2009/2010 we anticipate this will also increase to 0.481 p in the Pound.

The news on Transitional Arrangements for 2009/2010 is equally exciting! (Not!) The government’s current thinking is that for the first time since April 1990 there won’t be any adjustments made to any account for rate year 2009/10. This is of course good news in that it will make the calculation of rates relatively straightforward. The bad news is that we expect this ‘holiday’ to be for one year only.

Finally, as 2010 is the start of a Revaluation year, the “clever money” is definitely on the government issuing yet again a completely new set of even more complicated rules. More grief for the ratepayer, I’m afraid!

For further information call Stephen Hill