What are Your Business Rates Spent on?

Dear All

I had a very informative meeting this morning with Tim Neill the new Head of Resource at Welwyn Hatfield District Council.

He seems keen on transparency and so we are working to better understand what our business rates are being spent on.

As you probably know there are plans to have 100% of business rates spent locally by 2017. This will go someway to increasing the influence of local businesses because as I understand only about 50% currently is.

 

Now make no mistake the current system is still horribly complicated and no doubt costs a fortune to administer, however this is how it works.

Please Click on Images to Enlarge

The Income

Business rates 2

We pay some £60 million in business rates in Welwyn and Hatfield

50% SHARE goes to Government

10% goes to Herts County council

There is then a further Government TARIFF of 33%

So we keep around 7% = £4 million

That 4 Million is further Adjusted for Baseline funding, the amount Central Government deems that we need to run the Council Services. See below.

A Further LEVY of 50% is then charged

Adjusted yet again

and we end up with about 7% again

Business Rates 1

And this is the other income

Business Rates 3

So Council Tax  28% of £27.5 million = £7.7 million

Business Rates 14% = £3.9 million

Fees and Charges 17% = £4.7 million This is Parking and Parking Fines

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