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Business rates retention model

The LGA commissioned LG Futures to prepare an Excel model that would allow users to assess the potential implications of possible future changes to the business rates retention system. The model and the results it produces are not intended to signal any policy direction by the LGA.

The model starts in 2020/21 and extends for 15 years to 2035/36. It allows the user to examine the effect of a number of Business Rates Retention system design choices on a selected member authority, and comparator groups such as class of authority, region and pool. These include the level of the safety net and level, tier splits and options for resetting the system. Guidance notes take the user through each of these choices.

The model also allows the user to test their assumptions against 20 random scenarios of business rates growth, to show the potential impact at a local and national level. These 20 scenarios assign random rates of growth, and random levels of appeals, to every local authority. Users can also input their own assumptions about growth and appeals.

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

Please note that the model is designed to be a tool for member authorities to assess the implications of further Business Rates Retention and a number of system design choices.  It is not intended to signal any LGA policy direction.

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 [email protected] and we will arrange for a physical attachment to be sent to you.