Business rates are the way local businesses contribute to the cost of Harrogate Borough Council services.

Rates are determined by the government and collected by the council. The issue date for the 2017-18 annual bills is 15 March 2017.

Who pays

  • occupied property: the person, partnership or company that occupies it is liable for business rates. This may be as owner, tenant or without a formal agreement
  • unoccupied property: the party entitled to possession is liable - this might be the owner, or a tenant if they still have a lease even though they've left the property

Business rates are payable on most commercial property, including shops, offices, restaurants, pubs, warehouses and factories. Self-catering accommodation, such as a holiday home, is also liable to pay business rates if it's available to let for 140 days or more in a year.

Businesses run from domestic properties may also be subject to business rates as well as council tax. More information is available on GOV.UK.

Business rates charges

We expect to collect £60.8m in business rates from our local ratepayers in 2017-18.

Business rates are calculated by multiplying a property's rateable value by the non-domestic multiplier which, for 2017-18, is 47.9 pence (46.6 pence for small businesses).

The council retains 40% of the rates it collects (although this is subject to a large 'tariff' payable to central government, so the majority is not ultimately retained locally - see detail below), 50% will be paid to central government, 9% distributed to North Yorkshire County Council and 1% to North Yorkshire Fire and Rescue Authority.

For 2017-18 this amounts to:

Central government - £30,381,581
North Yorkshire County Council - £5,468,685
North Yorkshire Fire and Rescue Authority - £607,632
Harrogate Borough Council - £24,305,266 of this, £20,426,670 is paid to central government as a 'tariff' in order to reduce the funding retained by the council, in line with the Government's assessment of the funding 'need' of the council. Overall, the amount of business rates retained by Harrogate Borough Council is determined as follows:

40% share of rates collected: £24,305,266

Less tariff payable to central government: -£20,426,670

Plus government grant income to compensate the council for small business and other reliefs granted: £1,424,744

Less levy payable at rate of 50% on growth in business rates (Levy is paid to Leeds City Region business rates pool and retained for use within the Leeds City Region): -£864,903

Net business rates retained by Harrogate Borough Council: £4,438,437

Enquiries form

Page last updated 02/11/2017