The implications of a switch to locally varying business rates

Michael Ridge and Kevin Denny

Open Access publications from School of Economics, University College Dublin

Abstract: It has been nearly 2 years since the UK government reformed the system of local business rates to introduce a uniform business rate (UBR), but the debate continues over the merits of the new system. The change across regions in the revenues raised by the uniform system of business rates introduced in 1990 was due to 2 distinct components: a UBR effect and a reassessment of rateable values effect. Four alternative models of locally varying business rates were analyzed. These models are distinguished by alternative assumptions about resource equalization. A return to a system similar to the pre-1990 varying rates system would unfairly burden businesses in areas of low population. An improved model would take into account the degree of business concentration within a local authority. Using a model that relates local business tax rates to expenditure per establishment rather than per capita appears to be a more appropriate way of achieving horizontal equity.

Keywords: Statistical analysis; Rates; Measurement; Mathematical models; Fiscal policy; Business conditions; Property tax--Great Britain; Fiscal policy--Great Britain; Great Britain--Economic conditions (search for similar items in EconPapers)
Pages: 16 pages
Date: 1992-02
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published in: Fiscal Studies, 13(1) 1992-02

Downloads: (external link)
http://hdl.handle.net/10197/153 Open Access version, 1992 (application/pdf)

Related works:
Journal Article: The implications of a switch to locally varying business rates (1992)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ucn:oapubs:10197/153

Access Statistics for this paper

More papers in Open Access publications from School of Economics, University College Dublin Contact information at EDIRC.
Bibliographic data for series maintained by Nicolas Clifton ().