Uniform business rates (UBR)

Local Government Finance Revenue Expenditure - Uniform Business Rates


The National Non-Domestic Rates (NNDR), alternatively known as Uniform Business Rate (UBR), has been revalued every five years since 1990 when it was firstly introduced. The UBR is set by the central government.

Every business premise is rated on how much it could have been let for and based on the rateable value of property evaluated in 1991.

The amount of money actually charged in UBR annually will depend on a centrally determined calculation known as the 'national multiplier' ('poundage' in Scotland).

The multiplier is set at two levels: a 'standard' rate for middle-range and bigger companies which is £42.2p/£, while a 'small business rate' for those who meet necessary criteria which is 41.5p/£, defined by the Department for Business, Innovation and Skills (BIS) and the Treasury.

No matter which category the multiplier fall into, it is normally help below the level of inflation for business properties with 'average' values.

Therefore UBR is determined by the following formula: Rateable value of property x National multiplier.

Apart from what explained above, UBR charge are paid by business premise owners.
Regarding who collects the money, in England, Wales, and Scotland, local billing authority (in two-tier areas – district/borough council, in unitary areas – unitary authority) is responsible for collecting the money.

After having been raised locally, in England and Wales, it is central government's obligation to gather UBR revenue and redistributes it to local councils according to a population-based formula, taking into account variations in local socio-economic factors, such as unemployment levels.

However in Scotland, UBR was still a 'local tax', which both collected and spent in each area.