Rate in the pound

The basis of the business rate charge on a property is the rateable value multiplied by the rate in the pound - ‘the multiplier’. However, transitional regulations may affect the actual amount payable.

The rate in the pound is set annually by central government and will normally increase in line with inflation, the exception being when a revaluation has taken place which has happened every year since 1995.

At the last revaluation in 2005, the rate poundage was actually reduced to ensure that the proportion of business rates raised nationally remained the same following the revaluation. This reduction reflected the general increases in rateable value between the 2000 and 2005 rating lists.

The rate of inflation is calculated by comparing the Retail Price Index (RPI) at the end of September prior to the start of the financial year, with the RPI for the previous September.

In the years 1997/98, 1998/99 and 1999/2000 small assessments benefited from a slightly lower rate in the pound under ‘Small Hereditament Relief’, which resulted in their rate in the pound being reduced by 0.9 of a penny.

At the 2005 revaluation the government introduced the Small Business Rate Relief Scheme that attracts a lower poundage for qualifying rate payers.

Shown below are the rate poundages that have been used each year since business rates were introduced in April 1990.

Financial year	Rate in £	Notes
2011/12	43.3p	Standard non-domestic rate multiplier
2011/12	42.6p	Small business rate relief multiplier
2010/11	41.4p	Standard non-domestic rate multiplier
2010/11	40.7p	Small business rate relief multiplier
2009/10	48.5p	Standard non-domestic rate multiplier
2009/10	48.1p	Small business rate relief multiplier
2008/09	46.2p	Standard non-domestic rate multiplier
2008/09	45.8p	Small business rate relief multiplier
2007/08	44.4p	Standard non-domestic rate multiplier
2007/08	44.1p	Small business rate relief multiplier
2006/07	43.3p	Standard non-domestic rate multiplier
2006/07	42.6p	Small business rate relief multiplier
2005/06	42.2p	Standard non-domestic rate multiplier
2005/06	41.5p	Small business rate relief multiplier
2004/05	45.6p	Standard non-domestic rate multiplier
2003/04	44.4p	Standard non-domestic rate multiplier
2002/03	43.7p	Standard non-domestic rate multiplier
2001/02	43.0p	Standard non-domestic rate multiplier
2000/01	41.6p	Revaluation
1999/00	48.9p	48.0p if RV less than £10,000
1998/99	47.4p	46.5p if RV less than £10,000
1997/98	45.8p	44.9p if RV less than £10,000
1996/97	44.9p	Standard non-domestic rate multiplier
1995/96	43.2p	Standard non-domestic rate multiplier
1994/95	42.3p	Standard non-domestic rate multiplier
1993/94	41.6p	Standard non-domestic rate multiplier
1992/93	40.2p	Standard non-domestic rate multiplier
1991/92	38.6p	Standard non-domestic rate multiplier
1990/91	34.8p	Standard non-domestic rate multiplier