The Rate in the Pound Multiplier is set annually by Central Government. Between revaluations the multiplier will be increased each financial year by the annual rate of inflation.
This is so that the value of the money raised through Business Rates each year stays the same and the Government can pay for the same level of service from your local Council.
If this was not the case, there would be reductions in local service levels provided by the Council or the shortfall in the cost of services would have to be made up through national taxes or by increasing Council Tax.
Following a revaluation, if the total level of rateable values goes up because property values in general have risen, the multiplier will fall to ensure that the total amount raised from ratepayers stays the same.
The multiplier for the financial year 2018/19 is £0.48. Businesses with rateable values in excess of £50,999, empty properties and those in receipt of a mandatory rate relief will pay an additional supplement of £0.013 making their total multiplier £0.493.
For 2017/18 the multipliers were as follows:
Small business multiplier = 46.6p
Standard multiplier = 47.9p
For 2018/19 the multipliers are as follows:
Small business multiplier = 48p
Standard multiplier = 49.3p
For 2019/20 the proposed multipliers are as follows:
Small business multiplier = 49.1p
Standard multiplier = 50.4p