Non-domestic Rates: Garages and Petrol Stations
Philip Dunne asks the Secretary of State for Communities and Local Government what methodology was used by the Valuation Office Agency to calculate the fuel margin obtained in the independent petrol filling station network.
Mr. Dunne: To ask the Secretary of State for Communities and Local Government what methodology the Valuation Office Agency used in its 2010 business rates revaluation to calculate the fuel margin obtained in the independent petrol filling station network; and what factors that methodology takes into account. [313927]
Barbara Follett: The Valuation Office Agency based its assessment on the rateable value of petrol filling stations for the 2010 revaluation on the fair, maintainable, throughput of the property in question and not the actual fuel margin on the site.
The five-yearly business rates revaluation is designed to ensure that each business pays its fair contribution to the national burden and no more. The 2010 revaluation will not raise a single extra penny for Government and over a million properties will see their business rate liability fall as a result of revaluation.
Over the past five years petrol filling stations have seen prices rising; turnover increasing and rents growing. It is only fair to other ratepayers that these changes are reflected in their business rate bills. However, the Government have put in place a £2 billion relief scheme to limit the impact on business properties facing increases.
This means that in 2010-11 no petrol station or other business property will see its rates increase by more than 11 per cent. as a result of revaluation, with increases limited to no more than 3.5 per cent. for small properties.
