Why we carry out the revaluation

Revaluation is not new; the statutory legislation was first implemented in 1990 and it has been carried out every five years since then.

The revaluation is necessary because the relative value of business property changes. Some areas become more in demand, and so rental values rise, relative to the national average; demand falls in other areas, with rental values decreasing, relative to the national average. Rental value provides the basis of rateable value and so the five-yearly revaluation ensures each business contributes based upon up-to-date information.

The essential purpose of revaluation is to review the relative value of all properties having regard to up to date market evidence – it is the changes in relative values between properties that will dictate the extent to which business rate bills change, rather than the values themselves.  Find out how your bill is calculated at businesslink.

Revaluation does not raise extra revenue - the overall national multiplier is set to ensure the average business rate stays the same, only changing with inflation. Some rates bills rise and some fall following revaluation, but the average national bill only changes with inflation.

Central government (Communities and Local Government in England and the Welsh Assembly Government), the VOA and local authorities implement the revaluation. The VOA compiles and maintains the list of rateable values for all non-domestic properties across England and Wales. Check your current rateable value. The list will be updated with the new rateable values, and they will also be provided to ratepayers, in October 2009.

Local authorities will use the rateable values to calculate bills for the 2010/2011 financial year. Get your local authority contact details at businesslink.