Non-Domestic Rates, or business rates, collected by local authorities are the way that those who occupy non-domestic property contribute towards the cost of local services.
Under the business rates retention arrangements introduced from 1 April 2013, authorities keep a proportion of the business rates paid locally.
The money, together with revenue from Council Tax payers, locally generated income and grants from central government, is used to pay for the services provided by local authorities in your area.
Further information about the business rates system is on the GOV.UK website.
Businesses who occupy, or have entitlement to occupy, a commercial premises will be liable to pay business rates.
How business rates are calculated
The local authority works out the business rates bill for a property by multiplying the rateable value of the property by the appropriate non-domestic multiplier.
There are two multipliers: the standard nondomestic rating multiplier and the small business nondomestic rating multiplier. The Government sets the multipliers for each financial year.
Ratepayers who occupy a property with a rateable value which does not exceed £50,999 (and who are neither entitled to certain other mandatory relief(s) nor liable for unoccupied property rates) will have their bills calculated using the lower small business nondomestic rating multiplier, rather than the standard non-domestic rating multiplier.
Below are multipliers for the current and previous years.
| Year | Small Business Multiplier | Standard Multiplier |
|---|---|---|
| 2024/25 | 0.499 | 0.546 |
| 2023/24 | 0.499 | 0.512 |
| 2022/23 | 0.499 | 0.512 |
| 2021/22 | 0.499 | 0.512 |
| 2019/20 | 0.491 | 0.504 |