Alternative Business Rates Retention Illustrative Model

The LGA commissioned LG Futures to prepare an excel based illustrative model that shows how the Alternative system; as proposed by the Ministry of Housing, Communities & Local Government (MHCLG) in the December 2018 consultation paper.


The LGA commissioned LG Futures to prepare an excel based illustrative model that shows how the Alternative system; as proposed by MHCLG in the December 2018 consultation paper. The model and the results it produces are not intended to signal any policy direction by the LGA.

In order to show how an alternative system could work, the model uses local authorities’ actual and forecast business rate income for the period 2013/14 to 2019/20.

It is important to note that there is limited information regarding the alternative system, particularly around how authorities may be rewarded under the scheme. The illustrative model is based on a simplified version of LG Futures’ interpretation of the MHCLG proposals.

The mechanism chosen within this model has reversed out appeals provision movements; it was not possible to reverse out the cost of actual appeals paid. A full set of guidance notes for users of the model is supplied. Users are advised to read these before using the model.

A full set of guidance notes for users of the model is supplied. Users are advised to read these before using the model.

Business rates retention model

N.B. Depending on your browser you may need to download and save the model locally to use it. If this does not work, please get in touch with us through businessrates@local.gov.uk and we will arrange for a physical attachment to be sent to you.