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  4. Ministers move to put business water rates on equal footing

Ministers move to put business water rates on equal footing

7th July 2016

Businesses in Scotland could see their bills for water rates change as a result of a Scottish Government move to standardise the valuation dates on the basis of which rates are charged.

At present, water industry charges for some premises are based on the most recently assigned rateable value (currently the 2010 valuation roll), the same as used by local authorities for business rates. However for many, water industry charges are based on a rateable value dating back to the 1995 valuation roll – which may be higher or lower than the rateable value most recently assigned by the assessor.

As a consequence, there are significant differences between the amounts charged for similar premises. This is inconsistent with ministers’ principles as set out in their statement on the principles of charging for water services for the period 2015-21, and a consultation has opened on the most appropriate way for the water industry to make this change.

In particular it covers the date from which the most recent rateable values should be used; and the case for transition arrangements.

While the change is intended to be revenue neutral, the Scottish Government recognises that it is unavoidable that some businesses will benefit from charge reductions, while others will see their charges increase. 

Click here to access the consultation. The deadline for responses is 23 September 2016.

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