Rating & 2010 revaluationRating & 2010 revaluation

David Bridgewood David Bridgewood MRICSMRICSTeam LeaderTeam LeaderLincoln Valuation OfficeLincoln Valuation Office

TPS Rating update

It’s not about increasing taxes!It’s not about increasing taxes! An increase in rateable value does not necessarily

mean an increased rates demand Multiplier adjusted so that the total rate stays the

same, only allowing for inflation In England the multiplier for 2010/11 is 41.4p, down

from 48.5p in 2009/10 In Wales the multiplier for 2010/11 is 40.9p, down

from 48.9p in 2009/10 Some rates demands will rise and some will fall –

estimate by government is 60% will fall Transitional relief limits changes to individual

demands

TPS Rating update

Changes and developmentsChanges and developments

More summary valuations

website www.voa.gov.uk

Ratepayers can now estimate rate bills online www.businesslink.gov.uk

TPS Rating update

The effect on bills by regionThe effect on bills by region

Region Bill before reval Bill after reval % change

London £5,765m £6,330m 10%

South West £1,790m £1,840m 3%

Central List £1,125m £1,155m 3%

North East £835m £825m -1%

Yorkshire & Humber £1,885m £1,860m -1%

North West £2,655m £2,590m -2%

East of England £2,245m £2,180m -3%

South East £3,530m £3,345m -5%

West Midlands £2,070m £1,930m -7%

East Midlands £1,555m £1,395m -10%

Total £23,450m £23,445m 0%

TPS Rating update

The effect on bills by regionThe effect on bills by region

Overall change: 0%Overall change: 0%

KEY:

-10%- -6%

-5%- -1%

0%1%-5%

6%-10%

-3%

-10%

tbc

-7%

-5%3%

-1%

-2%

-1%

London 10%

beforebefore transitional relief transitional relief

TPS Rating update

The effect on bills by regionThe effect on bills by region

Overall change: 0%Overall change: 0%

KEY:

-10%- -6%

-5%- -1%

0%1%-5%

6%-10%

-1%

-4%

tbc

-3%

-2%1%

-0%

-1%

0%

London 3%

afterafter transitional relief transitional relief

TPS Rating update

The effect on bills by sectorThe effect on bills by sectorSector Bill before reval Bill after reval % change before

transition

Offices £5,045m £5,280m 5%

Central List £1,125m £1,155m 3%

All others £6,465m £6,620m 2%

Retail £5,805m £5,835m 1%

Industry £5,005m £4,555m -9%

Total £23,450m £23,445m 0%

TPS Rating update

Comparison of 2010/2005 RV by Comparison of 2010/2005 RV by Economic RegionsEconomic Regions

TPS Rating update

Some changes of approachSome changes of approach

Code of Measuring Practice

First floors in offices without passenger lifts

Mezzanines in industrial properties

More retail space valued “overall”

TPS Rating update

Economic circumstancesEconomic circumstances

Important to distinguish between AVD and material day

Economic factors at 1 April 2008

Physical factors at 1 April 2010

Physical changes in intervening period reflected in new assessments

TPS Rating update

A potted historyA potted history August 2007 – global credit crunch

September 2007 – run on Northern Rock

February 2008 – Northern Rock nationalised

April 2008 – AVD

September 2008 – collapse of Lehman Brothers marks start of worldwide recession

October 2008 – first UK bank bail-outs

TPS Rating update

A potted historyA potted history

November 2008 – Woolworths goes bust

March 2009 – interest rate hits all-time low 0.5%

August 2009 – unemployment reaches 14-year high c2.5 million

January 2010 – UK recession “officially over”

April 2010 – material day

TPS Rating update

Questions?Questions?