Mr Major’s Written Parliamentary Answer on Non-Domestic Rates – 4 July 1989

Below is the text of Mr Major’s written Parliamentary Answer on Non-Domestic Rates on 4th July 1989.

Dr. Cunningham To ask the Chancellor of the Exchequer when he will announce his decision on possible abatement of the increase in national non-domestic rates by powers given under sub-paragraph 5(3) of schedule 7 to the Local Government Finance Act 1988; what criteria he will take into account when taking that decision; and if he will make a statement.

Mr. Major [holding answer 21 June 1989]: The initial NNDR multipliers will be specified in the revenue support grant reports for 1990–91. For succeeding years, the presumption is that the NNDR multiplier will be increased in line with the indexation provisions in the Local Government Finance Act 1988. However, if I did decide to increase the multipliers by less than the RPI, this would be announced before the revenue support grant reports for the year in question had to be approved by Parliament. All relevant considerations would be taken into account: for example, if improved efficiency led to a significant reduction in the amount local authorities needed to spend, some of the efficiency gains should be reflected in the burden which falls on the business community through non-domestic rates.