Kent: Non Domestic rates 2011/12 (Known as the Business rates)

Transcription

1 Business Intelligence Statistical Bulletin November 2012 Kent: Non Domestic rates 2011/12 (Known as the Business rates) Related documents Kent County annual floorspace completions KCC-CIA Survey Kent Districts annual floorspace completions KCC-CIA Survey Domestic rates The Council Tax Further information Business Intelligence Research & Evaluation Kent County Council Sessions House County Hall Maidstone Kent ME14 1XQ Tel: This bulletin provides information on nondomestic rates (known as the Business rate) and associated information for the financial year 2011/12 for all local authority districts in Kent. Background notes regarding non-domestic rates can be found on page 16 of this document. Readers unfamiliar with definitions or points of detail regarding business rates may find it beneficial to read this information first. In 2011/12 it is estimated there were 12,321,000 square metres of business floorspace in Kent. An increase of 0.8% over the previous year. This is the second consecutive year, according to the Valuation Office Agency, total floorspace has increased. There are 37,320 hereditaments in Kent. 3,830 of which are in Maidstone district. 30% of all Kent hereditaments are concentrated in three districts, Maidstone, Thanet and Canterbury. It is estimated that 14% of hereditaments were empty in 2011/12. However this varies from 7% to 21% across the local authorities in Kent. The average rateable value per m 2 for Kent businesses varies by type of business and location. Typically rateable values are: Retail 159/m 2, Office 133/m 2, Industrial 46/m 2 and Other businesses 67/m 2. The actual rates payable are calculated using the rating multiplier, which for 2011/12 was 42.6p in the for small businesses.

2 Kent non-domestic rates (The business rate) report for 2011/12 It is estimated by the Valuation Office Agency (VOA) that there is 12,321,000 m 2 of business floorspace in Kent (Table 1). This is made up of: 6,659,000 m 2 of industrial floorspace, 3,156,000 m 2 of retail floorspace, 1,465,000 m 2 of office floorspace and a further 1,041,000 m 2 in other categories The total amount of business floorspace varies from district to district. It ranges from almost 1.5 million m 2 in Tonbridge and Malling district to 682,000 m 2 in Gravesham district. However, Gravesham is one of the smallest districts in the county with only one urban area; other districts may have two or more urban/ central business areas (Table 2). Tonbridge and Malling and Swale are the two districts with the most industrial foorspace. Canterbury district has most retail floorspace, with Maidstone recording most office floorspace (Table 2). Retail sector It is estimated that in 2012 there was approximately 3,155,000 m 2 of retail floorspace in Kent, 13% of which is in Canterbury district (416,000 m 2 ). This includes the three centres of Canterbury, Herne Bay and Whitstable (Table 2). There are 13,640 retail hereditaments county wide. Thanet has the largest number of retail hereditaments, 1,770, distributed between the three towns of Margate, Broadstairs and Ramsgate. However, Canterbury with the greatest floorspace recorded 1,520 hereditaments (Table 4). Industrial sector It is estimated there is approximately 6,660,000m 2 of industrial floorspace in Kent, the 5 th highest for any shire county in England. Nearly one third (31%) of which is concentrated in just two Kent districts; Tonbridge and Malling with 1,038,000 m 2 and Swale with1,001,000 m 2 (Table 1 and Table 2). There are 11,290 industrial hereditaments recorded in the county, 22% of which are located in just two local authorities; Ashford with 1,250 and Swale with 1,230. The district with the least number of industrial hereditaments was Gravesham with 470 (Table 4). Page 1

3 Office Sector There is approximately 1,463,000 m 2 of office floorspace in the county. This makes Kent the 4 th highest shire county in England following Surrey, Hampshire and Hertfordshire. Within the county Maidstone has the largest concentration of office space with 15% of the county total, Gravesham has the least with 3% (Table 1 and Table 2). Not surprisingly, given it has the largest amount of office floorspace, Maidstone has the largest number of office hereditaments with 1,100. This is followed by Tonbridge & Malling and Tunbridge Wells. The three districts together account for 35% of the total office hereditaments in the county (Table 4). Hereditaments (See list on page 15) There were 37,320 hereditaments recorded in all sectors in Kent during 2012 (Table 4). This is made up of: 13,640 in the retail sector 11,290 in the industrial sector 8,280 in the office sector 4,110 in other categories There were 6,066 empty hereditaments recorded in all sectors in Kent during 2011/12, almost 8% fewer than the previous year when there were 6,532 empty hereditaments. However, this remains close to the three year county average of 14% and lower than the national average of 16% (Table 8). Seven of the Kent districts have reduced empty hereditaments for two consecutive years. In contrast two districts (Gravesham and Tonbridge & Malling) have seen vacant property continue to rise (Table 8). Tonbridge & Malling recorded the highest number of empty hereditaments (635). However, Gravesham recorded the highest percentage (21%), this is the 9 th highest in England behind Salford who topped the local authorities with 30% empty property. Canterbury with 7% empty was ranked 306 out of 326 local authorities. As a percentage only Chichester, Adur and the Isle of Wight in the south east region recorded fewer empty hereditaments. Page 2

4 Rateable Value Each hereditament has a rateable value (RV) which is set by the Valuation Office Agency (VOA). This is not the amount of business rates payable. The rates bill (amount payable) for a business property is the product of its rateable value and the relevant national non-domestic rating multiplier (see background notes). Local authorities in England collected 20.8 billion in non-domestic rates by the end of March 2012 out of a total of 21.3 billion collectable. This gave a national average in-year collection rate for non-domestic rates in England of 97.8 per cent in , a decrease of 0.2 percentage points over Local level data on collection rates is not available. Retail Sector The average rateable value for retail floorspace in Kent is 159/m 2. This is slightly above both the national average of 150/m 2 and the average for the south east region which is 156/m 2 (Table 3 & Table 5). This varies greatly across the county from 357/m 2 in Dartford to 106/m 2 and 107/m 2 in Thanet and Dover respectively (Table 3 & Table 5). Industrial Sector The average rateable value for industrial floorspace in Kent is 46/m 2. This is above the national average of 37/m 2 but below the south east regional average of 50/m 2 (Table 3 & Table 7). This varies across the county from 65/m 2 in Dartford to 34/m 2 in Thanet (Table 3 & Table 7). Office sector The average rateable value in the office sector in Kent is 113/m 2. This is close to the average for the south east region but lower than the national average of 155/m 2 (Table 3 & Table 6). This rate varies across the county from 155/m 2 in Sevenoaks, the same as the national average, to 61/m 2 in Thanet (Table 3 & Table 6). Page 3

5 Table 1 Kent (KCC area) business floorspace by sector 2012 Source: VOA Floorspace (Thousands m 2 ) Retail 2,824 2,913 2,920 2,945 2,963 2,948 3,021 3,049 3,084 3,102 3,123 3,109 3,156 Office 1,343 1,354 1,379 1,391 1,415 1,354 1,371 1,381 1,417 1,451 1,467 1,472 1,465 Industrial 6,510 6,704 6,756 6,777 6,738 6,665 6,689 6,731 6,686 6,669 6,567 6,603 6,659 Other ,036 1,034 1, ,033 1,034 1,041 Total 11,496 11,810 11,909 12,003 12,050 12,003 12,115 12,213 12,149 12,196 12,190 12,218 12,321 The totals may not sum due to rounding. The lines in the table highlight the revaluation years 2005 and A revaluation affects the rateable values and other information for hereditaments Page 4

6 Table 2 Kent Districts: Business floorspace by sector (Thousands m 2 ) 2012 Source: VOA Floorspace (Thousands m 2 ) Ashford Canterbury Dartford Dover Gravesham Maidstone Sevenoaks Shepway Swale Thanet T & Malling T Wells Kent Retail ,155 Office ,463 Industrial , , ,660 Other ,042 Total 1,106 1, , , , ,320 The totals may not sum due to rounding. Page 5

7 Table 3 Kent Districts: Rateable value by sector /m Source: VOA Rateable value /m 2 Ashford Canterbury Dartford Dover Gravesham Maidstone Sevenoaks Shepway Swale Thanet T & Malling T Wells Kent Retail Office Industrial Other The totals may not sum due to rounding. Page 6

8 Table 4 Kent Districts: Number of hereditaments by sector 2012 Source: VOA Hereditaments Ashford Canterbury Dartford Dover Gravesham Maidstone Sevenoaks Shepway Swale Thanet T & Malling T Wells Kent Retail 990 1,520 1,050 1, , ,210 1,060 1, ,320 13,640 Office , ,280 Industrial 1,250 1, ,170 1, ,230 1, ,290 Other ,110 Total 3,310 3,750 2,470 2,670 1,830 3,830 3,150 2,960 3,230 3,770 2,930 3,420 37,320 The totals may not sum due to rounding. Page 7

9 Table 5 Kent: Rateable Values ( /m 2 ) - Retail sector Source: VOA Rateable value /m Ashford Canterbury Dartford Dover Gravesham Maidstone Sevenoaks Shepway Swale Thanet Tonbridge & Malling Tunbridge Wells Kent Medway UA South East England The totals may not sum due to rounding. The lines in the table highlight the revaluation years 2005 and A revaluation affects the rateable values and other information for hereditaments. Page 8

10 Chart accompanying table 5 Page 9

11 Table 6 Kent: Rateable Values ( /m2) - Office sector Source: VOA Rateable value ( /m 2 ) Ashford Canterbury Dartford Dover Gravesham Maidstone Sevenoaks Shepway Swale Thanet Tonbridge & Malling Tunbridge Wells Kent Medway UA South East England The totals may not sum due to rounding. The lines in the table highlight the revaluation years 2005 and A revaluation affects the rateable values and other information for hereditaments. Page 10

12 Chart accompanying table 6 Page 11

13 Table 7 Kent: Rateable Values ( /m 2 ) - Industrial sector Source: VOA Rateable Value ( /m 2 ) Ashford Canterbury Dartford Dover Gravesham Maidstone Sevenoaks Shepway Swale Thanet Tonbridge & Malling Tunbridge Wells Kent Medway UA South East England The totals may not sum due to rounding. The lines in the table highlight the revaluation years 2005 and A revaluation affects the rateable values and other information for hereditaments. Page 12

14 Chart accompanying table 7 Page 13

15 Number of empty hereditaments As percentage of authority's hereditaments Number of empty hereditaments As percentage of authority's hereditaments Number of empty hereditaments As percentage of authority's hereditaments Table 8 Estimated number of empty hereditaments as at 31 March each year Source: VOA NNDR3 form Ashford % % % Canterbury % % % Dartford % % % Dover % % % Gravesham % % % Maidstone % % % Sevenoaks % % % Shepway % % % Swale % % % Thanet % % % T & Malling % % % Tunbridge Wells % % % Kent 6, % 6, % 6, % Medway 1, % 1, % % Page 14

16 Hereditaments: By type Source: VOA Industrial Office Retail Other Abattoirs & Slaughterhouses Business Units Auction Rooms Air Strips Museums & Art Galleries Agricultural Research Centres Civic & Public Buildings Cafes/Restaurants Ambulance Stations Night Clubs & Discotheques Animal Breeding Centres Computer Centres Car Showrooms/Auctions/Supermarkets Amusement Arcades Nurseries/Creches Baling Plants Offices Car/Caravan Sales/Hiring Sites Animal Boarding Nursing Homes Brickworks, Clay Tile/Pipe Works Factory Shops Betting Offices Other Miscellaneous Bus Garages Farm Shops Boat Yards Pavilions Cement Tile Works Financial & Professional Services Bowling Alleys Pet Grooming Parlours Cold Stores Food Stores Bowling Greens (Outdoor) Pitch & Putt/Putting Greens Concrete Works Garden Centres Bullion/Money Stores Police Stations Contractors Huts & Compounds Hairdressing/Beauty Salons/Clinics Caravan Sites & Pitches Police Training Colleges Creameries Motorway Service Area Let Outs Casinos & Gambling Clubs Polo Grounds Distilleries Pharmacies Changing Rooms Racing Stables Factories, Workshops & Warehouses Pitches for Stalls, Sales or Promotions Clubhouses & Institutions Recording Studios Food Processing Centres Post Offices Coastguard Stations Riding Schools & Livery Stables Foundries Retail Warehouses & Foodstores Commercial Miscellaneous Rifle & Weapons Ranges Garages Sales Kiosks Community Day Centres Snooker Halls/Clubs Granaries & Intervention Stores Sales Offices Courts Sports & Leisure Centres High Tech Warehouses Shops Cricket Grounds/Pitches Sports Grounds Industrial Miscellaneous Showhouses Dance Schools & Centres Squash Courts Large Distribution Warehouses Showrooms Day Nurseries/Play Schools Stables & Loose Boxes Large Industrials Station Let Outs Educational Miscellaneous Stud Farms Newspaper Printing Works Takeaway Food Outlets Field, Activity & Adventure Centres Studios Pack Houses Film & TV Studios Surgeries, Clinics, Health Centres Paper Mills Football Grounds/Pitches Swimming Pools Post Office Sorting Centres Funeral Parlours/Chapels Of Rest Telecommunications Switching Centres Potteries Golf Courses Training Centre Provender Mills (National Scheme) Guest & Boarding Houses University - Ancillary Land or Buildings Scrap Metal/Breakers Yard Gymnasia/Fitness Suites Veterinary Clinics / Animal Clinics Stores Hospital Let Outs Village Halls, Scout Huts, etc Tanneries Information/Visitor Centres Wine Bars Vehicle Testing Centres Land Used for Display Wafer Fabrications Leisure Miscellaneous Warehouses Libraries Waste Transfer and Recycling Lifeboat Stations Workshops Miniature Railways Page 15

17 Non-domestic rates (known as Business rates) Sources: Department of Communities and Local Government, The Valuation Office Agency. Background notes Since 1 April 1990 most non-domestic properties in England have been liable to nationally-set non-domestic rates (NNDR), which are also known as business rates (or sometimes the unified business rate). Before 1990, nondomestic rates were set locally. Since then, they have been set nationally, and paid into a central pool. Prior to the revenue collected was distributed among local authorities on a per head basis. From onwards, it was distributed among local authorities on the same basis as Revenue Support Grant, with the payments being regarded as a type of government grant. As well as businesses, liable properties include public buildings, pipelines and advertising hoardings. However, some non-domestic properties, such as agricultural land and associated buildings, and churches, are exempt. Each property liable to non-domestic rates is known as a hereditament, and is recorded on a rating list that is compiled and maintained by the Valuation Office Agency, an agency of HM Revenue and Customs. Each hereditament has a rateable value (RV). Every property has a rateable value that is based, broadly, on the annual rent that the property could have been let for on the open market at a particular date. Currently the hereditaments lists were revalued from 1 April 2010 (based on property values as at 1 April 2008). The RV is used in determining the rates liability, and therefore the bill. Rateable value (RV) is the legal term for the notional annual rent of a hereditament as assessed by the Valuation Office Agency (VOA). The rateable value of a property is re-assessed every five years, this is known as revaluation. It is undertaken to ensure changes in property market rent values are taken into account. Rateable values go both up and down at revaluation, in comparison to the average. The next revaluation comes into effect on 1 April 2015 with a valuation date of 1 April In broad terms, the rates bill for a property is the product of its rateable value and the relevant national non-domestic rating multiplier. This was 40.7p in the pound ( ) in and 42.6p in the pound ( ) in , for ratepayers benefiting from the small business rate relief scheme. For other properties the figures were 41.4p in the pound ( ) in and 43.3p in Further adjustments may be made for other reliefs. The multiplier is amended to ensure that nationally, no additional revenue other than would have been due allowing for inflation, is collected as a result of revaluation. Page 16

18 Multiplier (pence) applying to ratepayers of small business A supplement of 0.7p in the pound applies to other properties A supplement of 0.7p in the pound applies to other properties A supplement of 0.3p in the pound applies to other properties A supplement of 0.4p in the pound applies to other properties A supplement of 0.4p in the pound applies to other properties A supplement of 0.7p in the pound applies to other properties A supplement of 0.7p in the pound applies to other properties A supplement of 0.8p in the pound applies to other properties. Rate reliefs can be granted, in certain circumstances, by local authorities. Mandatory reliefs 1 are automatic entitlements in any local authority area, and Discretionary reliefs 2 are granted at a local authority s discretion. An example of these two types of relief are properties held by charities, which are automatically entitled to mandatory relief of 80 per cent and where local authorities have the discretion to top the amount up to 100 per cent. The cost of discretionary relief is met, in part, by local authorities. Note: 1 Mandatory reliefs: Charity Rural village shop Partly occupied Empty property* Community amateur sports clubs *Rules governing the award of empty property relief changed in April 2008, April 2009 and April Discretionary reliefs: Charity Non-profit making bodies Rural village shop Other small rural business Hardship Charges on property Community amateur sports clubs Discretionary Relief may be applied for by any organisation including those who already receive Mandatory Relief. Discretionary Relief is at the discretion of the Local Authority and can be for any amount up to 100% of the total rates payable. For the recipients of Mandatory Relief, this could mean up to the full amount due for payment may be awarded. However, in order for relief to be given, conditions can be attached. Further information can be obtained from your local authority. Page 17

19 A further relief for former agricultural properties ceased during August 2006 and is no longer available but may be applied retrospectively where applicable. In addition, at a revaluation, transitional arrangements are introduced which cap significant increases and decreases in bills. The 2010 transitional scheme aims to be revenue neutral by phasing in both increases and decreases over five years, instead of all ratepayers receiving the full impact of the changes immediately on 1 April The Business Rate Supplements Act 2009 This made provision for county councils, unitary district councils and the Greater London Authority to levy a supplement of up to a maximum of 2p in the pound on the national non-domestic rate for properties with a rateable value greater than 50,000. The revenue from the Business Rate Supplement is not returned to the national pool, but retained by authorities so that they are able to use the proceeds to fund additional investment aimed at promoting the economic development of local areas. Presently, only the GLA have levied a Business Rate Supplement. As with all council taxes, the collection of non-domestic rates continues once the financial year to which they relate has ended; this means that the final collection rate achieved is always moving towards100 per cent. Having been collected, the income from non-domestic rates is paid into a central pool and is then redistributed to local authorities. Each year, the Government estimates how much will be redistributed from the pool in the forthcoming year, based on the amount likely to be paid into it and the difference in previous years between the amounts payable to the pool and the amounts paid from it. This is known as the Distributable Amount. Non-domestic rates come mainly from two sources: properties on local rating lists (which since have included Crown properties, such as central government properties and Ministry of Defence establishments) and properties on the central list (such as national utilities and pipelines etc). The income from properties on local rating lists is collected by billing authorities and paid by them into the central pool. Rates from properties on the central list are collected directly by the Department for Communities and Local Government. Page 18

20 Enterprise Zones Specific areas where a combination of financial incentives and reduced planning restrictions will apply. The zones are designed to encourage the creation of new businesses and jobs, thereby helping to support both local and national growth. Enterprise Zones will benefit from: A business rate discount worth up to 275,000 per business over a five year period; All business rates growth within the zone for a period of at least 25 years will be retained by the local area, to support the Partnership's economic priorities and ensure that Enterprise Zone growth is reinvested locally; Government help to develop radically simplified planning approaches for the zone using, for example, existing Local Development Order powers; Government support to ensure that superfast broadband is rolled out throughout the zone, achieved through guaranteeing the most supportive regulatory environment and, if necessary, public funding; Enterprise Zones have been awarded to, and are being driven by, Local Enterprise Partnerships. Since the Budget in 2011 the Government has announced 24 Enterprise Zones across England which took effect from 1 April The Enterprise Zone package for Discovery Park, Sandwich, Kent, will encourage new start-up businesses and other investors with simplified planning rules and millions of pounds in tax breaks to promote growth. Small business rate relief scheme (SBRR) A relief scheme within the business rates system to help small businesses meet the cost of their rates. The SBRR is funded by those businesses not receiving benefit from the scheme through a supplement included in the National Multiplier. An important change to the level of relief granted was introduced from 1 October 2010 and which will run until at least 31 March Those hereditaments with a rateable value of less than 6,000 who were eligible for relief at 50% of their rate liability now have 100% rate relief they pay no rates at all. Those hereditaments with a rateable value of between 6,001 and 12,000 and were eligible for relief on a sliding scale between 50% and zero are now entitled to relief on a sliding scale between 100% and zero. The additional costs arising from this temporary change in the scheme will be met by the Government. There will be no adjustment to the multiplier to reflect the extension of the relief. Page 19

21 New Assessments New assessments are inserted into the Local Rating List as a result of: newly built property; property which has been reconstituted (e.g. either a property is split into two or more new properties or two or more properties are merged to form a new property); or a property which was not previously in the Local Rating List is added due to a change to that property (e.g. a house converted into a shop). Assessments are removed from the Local Rating List where: a property has been demolished; a property has been reconstituted (e.g. either a property is split into two or more new properties or two or more properties are merged to form a new property); or the property is no longer rateable due to a change to that property (e.g. a shop is converted into a house). Further information Ratepayers can find further information on non-domestic rates on the Valuation Office Agency managed website Or rateable value valuations: Page 20