Rt Hon Oliver Letwin MP
House of Commons
London
SW1 0AA
30th November 2004
Thank you for taking the trouble to visit Sittingbourne & Sheppey last week and for meeting with local traders to hear their concerns about rates revaluation.
Following our meeting I undertook an analysis of the current rates revaluation across 64 local authorities in England. I am no expert in these matters, and my calculations would need to be checked, but the information, which was gathered from a Government website (mybusinessrates.gov.uk), appears to show that the average percentage increase across those 64 authorities is 18%, however, in Swale the increase is 34%.
There are many people in this area, particularly amongst the small business community, who would question the assumption that the value of commercial properties in Swale has risen at twice the national average, particularly when compared to the neighbouring authority of Medway, which has a rateable value increase of just 3%.
The Government promised that the current rates revaluation exercise would be revenue neutral; however, based on their own figures (and assuming the current provisional multiplier of 42.2P is used) my calculation is that across those 64 authorities, an additional £4.7 million will be raised in business rates. Extrapolated across the 400 authorities in England the additional rates generated will be £1.9 billion!
Of course transitional rates relief will ensure that the actual rates bill will be restricted in the first year to an increase of 7.8% (including inflation) for small businesses and 15.3% for larger businesses, however, these percentages will increase over subsequent years so the Exchequer will still receive the additional revenue at some stage!
Please find attached a spreadsheet setting out my calculations, which I hope will be useful to you. If they are correct (and further research will be needed to see if the actual figures for the balance of English authorities reflects the statistical assumptions I have made) I very much hope you will be able to expose what appears to be yet another stealth tax on the business community.
Swale businesses are likely to be particularly hard hit by this revaluation and I would be very grateful for any help you can give to highlight the plight that now faces many traders in our community.
Yours sincerely
GORDON HENDERSON
| RATING | RATEABLE | 2004 | TOTAL | RATEABLE | 2005 | TOTAL | RV | INCREASE/ |
| AUTHORITY | VALUE 2000 | MULT | REVENUE | VALUE 2005 | MULT | REVENUE | % INC | DECREASE |
| ADUR | £ 32,097,449 | £ 0.456 | £ 14,636,437 | £ 36,179,900 | £ 0.422 | £ 15,267,918 | 13% | £ 631,481 |
| ALLERDALE | £ 47,575,189 | £ 0.456 | £ 21,694,286 | £ 53,211,460 | £ 0.422 | £ 22,455,236 | 12% | £ 760,950 |
| ALNWICK | £ 11,370,898 | £ 0.456 | £ 5,185,129 | £ 13,033,400 | £ 0.422 | £ 5,500,095 | 15% | £ 314,965 |
| AMBER VALLEY | £ 60,884,036 | £ 0.456 | £ 27,763,120 | £ 69,664,352 | £ 0.422 | £ 29,398,357 | 14% | £ 1,635,236 |
| ARUN | £ 58,549,855 | £ 0.456 | £ 26,698,734 | £ 70,190,904 | £ 0.422 | £ 29,620,561 | 20% | £ 2,921,828 |
| ASHFIELD | £ 48,300,878 | £ 0.456 | £ 22,025,200 | £ 56,225,122 | £ 0.422 | £ 23,727,001 | 16% | £ 1,701,801 |
| ASHFIELD | £ 76,542,115 | £ 0.456 | £ 34,903,204 | £ 97,378,010 | £ 0.422 | £ 41,093,520 | 27% | £ 6,190,316 |
| AYLESBURY VALE | £ 85,486,454 | £ 0.456 | £ 38,981,823 | £ 99,849,576 | £ 0.422 | £ 42,136,521 | 17% | £ 3,154,698 |
| BABERGH | £ 35,752,299 | £ 0.456 | £ 16,303,048 | £ 45,630,839 | £ 0.422 | £ 19,256,214 | 28% | £ 2,953,166 |
| BARKING & DAGENHAM | £ 108,561,369 | £ 0.456 | £ 49,503,984 | £ 120,458,931 | £ 0.422 | £ 50,833,669 | 11% | £ 1,329,685 |
| BARNET | £ 187,704,535 | £ 0.456 | £ 85,593,268 | £ 228,249,210 | £ 0.422 | £ 96,321,167 | 22% | £ 10,727,899 |
| BARNSLEY | £ 91,563,519 | £ 0.456 | £ 41,752,965 | £ 109,752,182 | £ 0.422 | £ 46,315,421 | 20% | £ 4,562,456 |
| BARROW-IN-FURNESS | £ 44,208,352 | £ 0.456 | £ 20,159,009 | £ 47,586,830 | £ 0.422 | £ 20,081,642 | 8% | -£ 77,366 |
| BASILDON | £ 135,873,954 | £ 0.456 | £ 61,958,523 | £ 175,853,055 | £ 0.422 | £ 74,209,989 | 29% | £ 12,251,466 |
| BASINGSTOKE | £ 149,580,883 | £ 0.456 | £ 68,208,883 | £ 168,815,597 | £ 0.422 | £ 71,240,182 | 13% | £ 3,031,299 |
| BASSETLAW | £ 100,087,175 | £ 0.456 | £ 45,639,752 | £ 83,760,711 | £ 0.422 | £ 35,347,020 | -16% | -£ 10,292,732 |
| BATH & NE SOMERSET | £ 104,899,800 | £ 0.456 | £ 47,834,309 | £ 127,798,272 | £ 0.422 | £ 53,930,871 | 22% | £ 6,096,562 |
| BEDFORD | £ 115,363,621 | £ 0.456 | £ 52,605,811 | £ 141,300,092 | £ 0.422 | £ 59,628,639 | 22% | £ 7,022,828 |
| BERWICK UPON TWEED | £ 16,061,152 | £ 0.456 | £ 7,323,885 | £ 18,375,887 | £ 0.422 | £ 7,754,624 | 14% | £ 430,739 |
| BEXLEY | £ 122,889,549 | £ 0.456 | £ 56,037,634 | £ 147,201,731 | £ 0.422 | £ 62,119,130 | 20% | £ 6,081,496 |
| BIRMINGHAM | £ 800,892,396 | £ 0.456 | £ 365,206,933 | £ 943,805,465 | £ 0.422 | £ 398,285,906 | 18% | £ 33,078,974 |
| BLABY | £ 70,807,019 | £ 0.456 | £ 32,288,001 | £ 84,781,042 | £ 0.422 | £ 35,777,600 | 20% | £ 3,489,599 |
| BLACKBURN | £ 86,343,618 | £ 0.456 | £ 39,372,690 | £ 94,427,906 | £ 0.422 | £ 39,848,576 | 9% | £ 475,887 |
| BLACKPOOL | £ 96,390,304 | £ 0.456 | £ 43,953,979 | £ 103,727,244 | £ 0.422 | £ 43,772,897 | 8% | -£ 181,082 |
| BLAENAU GWENT | £ 22,931,579 | £ 0.456 | £ 10,456,800 | £ 27,118,000 | £ 0.422 | £ 11,443,796 | 18% | £ 986,996 |
| BLYTH VALLEY | £ 32,615,805 | £ 0.456 | £ 14,872,807 | £ 37,635,188 | £ 0.422 | £ 15,882,049 | 15% | £ 1,009,242 |
| BOLSOVER | £ 30,042,712 | £ 0.456 | £ 13,699,477 | £ 36,887,894 | £ 0.422 | £ 15,566,691 | 23% | £ 1,867,215 |
| BOLTON | £ 166,663,618 | £ 0.456 | £ 75,998,610 | £ 203,764,257 | £ 0.422 | £ 85,988,516 | 22% | £ 9,989,907 |
| BOSTON | £ 31,326,458 | £ 0.456 | £ 14,284,865 | £ 37,985,987 | £ 0.422 | £ 16,030,087 | 21% | £ 1,745,222 |
| CANTERBURY | £ 86,281,653 | £ 0.456 | £ 39,344,434 | £ 106,392,076 | £ 0.422 | £ 44,897,456 | 23% | £ 5,553,022 |
| DOVER | £ 65,183,829 | £ 0.456 | £ 29,723,826 | £ 81,268,571 | £ 0.422 | £ 34,295,337 | 25% | £ 4,571,511 |
| KENNET | £ 31,403,511 | £ 0.456 | £ 14,320,001 | £ 36,500,410 | £ 0.422 | £ 15,403,173 | 16% | £ 1,083,172 |
| KENSINGTON & CHELS | £ 410,437,960 | £ 0.456 | £ 187,159,710 | £ 493,685,175 | £ 0.422 | £ 208,335,144 | 20% | £ 21,175,434 |
| KERRIER | £ 31,091,235 | £ 0.456 | £ 14,177,603 | £ 39,003,317 | £ 0.422 | £ 16,459,400 | 25% | £ 2,281,797 |
| KETTERING | £ 49,543,462 | £ 0.456 | £ 22,591,819 | £ 58,552,930 | £ 0.422 | £ 24,709,336 | 18% | £ 2,117,518 |
| KINGS LYNN | £ 66,143,083 | £ 0.456 | £ 30,161,246 | £ 79,099,069 | £ 0.422 | £ 33,379,807 | 20% | £ 3,218,561 |
| KINGSTON UPON THAMES | £ 144,422,685 | £ 0.456 | £ 65,856,744 | £ 181,686,489 | £ 0.422 | £ 76,671,698 | 26% | £ 10,814,954 |
| KIRKLEES | £ 204,757,997 | £ 0.456 | £ 93,369,647 | £ 233,778,453 | £ 0.422 | £ 98,654,507 | 14% | £ 5,284,861 |
| KNOWLSEY | £ 68,169,302 | £ 0.456 | £ 31,085,202 | £ 83,526,914 | £ 0.422 | £ 35,248,358 | 23% | £ 4,163,156 |
| LAMBETH | £ 172,942,840 | £ 0.456 | £ 78,861,935 | £ 228,181,730 | £ 0.422 | £ 96,292,690 | 32% | £ 17,430,755 |
| LANCASTER | £ 94,197,673 | £ 0.456 | £ 42,954,139 | £ 85,349,148 | £ 0.422 | £ 36,017,340 | -9% | -£ 6,936,798 |
| LEEDS | £ 636,539,194 | £ 0.456 | £ 290,261,872 | £ 744,612,759 | £ 0.422 | £ 314,226,584 | 17% | £ 23,964,712 |
| LEWES | £ 37,072,052 | £ 0.456 | £ 16,904,856 | £ 50,031,510 | £ 0.422 | £ 21,113,297 | 35% | £ 4,208,442 |
| LEWISHAM | £ 94,880,194 | £ 0.456 | £ 43,265,368 | £ 120,627,354 | £ 0.422 | £ 50,904,743 | 27% | £ 7,639,375 |
| LICHFIELD | £ 56,607,706 | £ 0.456 | £ 25,813,114 | £ 67,228,284 | £ 0.422 | £ 28,370,336 | 19% | £ 2,557,222 |
| LINCOLN | £ 74,400,146 | £ 0.456 | £ 33,926,467 | £ 89,182,528 | £ 0.422 | £ 37,635,027 | 20% | £ 3,708,560 |
| MAIDSTONE | £ 94,419,473 | £ 0.456 | £ 43,055,280 | £ 119,159,946 | £ 0.422 | £ 50,285,497 | 26% | £ 7,230,218 |
| MEDWAY | £ 160,586,434 | £ 0.456 | £ 73,227,414 | £ 165,787,258 | £ 0.422 | £ 69,962,223 | 3% | -£ 3,265,191 |
| POOLE | £ 98,943,270 | £ 0.456 | £ 45,118,131 | £ 129,776,895 | £ 0.422 | £ 54,765,850 | 31% | £ 9,647,719 |
| ST HELENS | £ 103,021,815 | £ 0.456 | £ 46,977,948 | £ 117,662,265 | £ 0.422 | £ 49,653,476 | 14% | £ 2,675,528 |
| STAFF MOORLANDS | £ 37,260,095 | £ 0.456 | £ 16,990,603 | £ 43,352,372 | £ 0.422 | £ 18,294,701 | 16% | £ 1,304,098 |
| STAFFORD | £ 77,055,730 | £ 0.456 | £ 35,137,413 | £ 90,426,822 | £ 0.422 | £ 38,160,119 | 17% | £ 3,022,706 |
| STEVENAGE | £ 82,032,410 | £ 0.456 | £ 37,406,779 | £ 100,319,855 | £ 0.422 | £ 42,334,979 | 22% | £ 4,928,200 |
| STOCKPORT | £ 177,877,401 | £ 0.456 | £ 81,112,095 | £ 205,963,188 | £ 0.422 | £ 86,916,465 | 16% | £ 5,804,370 |
| STOCKTON ON TEES | £ 127,503,565 | £ 0.456 | £ 58,141,626 | £ 149,210,657 | £ 0.422 | £ 62,966,897 | 17% | £ 4,825,272 |
| STOKE ON TRENT | £ 170,078,620 | £ 0.456 | £ 77,555,851 | £ 196,053,909 | £ 0.422 | £ 82,734,750 | 15% | £ 5,178,899 |
| STRATFORD ON AVON | £ 94,162,142 | £ 0.456 | £ 42,937,937 | £ 109,761,626 | £ 0.422 | £ 46,319,406 | 17% | £ 3,381,469 |
| STROUD | £ 47,280,715 | £ 0.456 | £ 21,560,006 | £ 52,175,570 | £ 0.422 | £ 22,018,091 | 10% | £ 458,085 |
| SUFFOLK COASTAL | £ 84,444,014 | £ 0.456 | £ 38,506,470 | £ 92,427,932 | £ 0.422 | £ 39,004,587 | 9% | £ 498,117 |
| SUNDERLAND | £ 151,903,257 | £ 0.456 | £ 69,267,885 | £ 180,707,646 | £ 0.422 | £ 76,258,627 | 19% | £ 6,990,741 |
| SURREY HEATH | £ 81,942,122 | £ 0.456 | £ 37,365,608 | £ 88,957,315 | £ 0.422 | £ 37,539,987 | 9% | £ 174,379 |
| SUTTON | £ 93,955,961 | £ 0.456 | £ 42,843,918 | £ 120,984,450 | £ 0.422 | £ 51,055,438 | 29% | £ 8,211,520 |
| SWALE | £ 64,374,108 | £ 0.456 | £ 29,354,593 | £ 86,277,620 | £ 0.422 | £ 36,409,156 | 34% | £ 7,054,562 |
| SWANSEA | £ 126,685,393 | £ 0.456 | £ 57,768,539 | £ 153,442,699 | £ 0.422 | £ 64,752,819 | 21% | £ 6,984,280 |
| TOTAL 64 AUTHORITIES | £ 7,168,967,638 | £ 3,269,049,243 | £ 8,461,803,786 | £ 3,570,881,198 | 18% | £ 301,831,955 | ||
| AVERAGE | £ 119,482,794 | £ 54,484,154 | £ 141,030,063 | £ 59,514,687 | £ 4,716,124 | |||
| TOTAL ESTIMATE (400 AUTHORITIES) | £ 1,886,449,717 |