We calculate the business rates bill by multiplying the rateable value of the property by the appropriate multiplier. There are two multipliers; the standard non-domestic rating multiplier and the small business non-domestic rating multiplier. The standard non domestic rating multiplier is higher and effectively includes a supplement to pay for small business rate relief. Except in the City of London where special arrangements apply, the Government sets the multipliers for each financial year for the whole of England according to formulae set by legislation.
Between revaluations the multipliers change each year in line with inflation and to take account of the cost of small business rate relief. In the year of revaluation the multipliers are rebased to account for overall changes to total rateable value and to ensure that the revaluation does not raise extra money for Government. The multipliers for the financial year 2012/2013 are as follows;
Standard Non Domestic Rating Multiplier 45.8p
Small Business Non Domestic Rating Multiplier 45.0p