The implications of a switch to locally varying business rates

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Title: The implications of a switch to locally varying business rates
Authors: Ridge, Michael
Denny, Kevin
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Date: Feb-1992
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.
Type of material: Journal Article
Publisher: Blackwell Publishing on behalf of Institute for Fiscal Studies
Copyright (published version): 1992, Blackwell Publishing Ltd
Keywords: Statistical analysisRatesMeasurementMathematical modelsFiscal policyBusiness conditions
Subject LCSH: Property tax--Great Britain
Fiscal policy--Great Britain
Great Britain--Economic conditions
DOI: 10.1111/j.1475-5890.1992.tb00497.x
Language: en
Status of Item: Peer reviewed
Appears in Collections:Geary Institute Research Collection
Economics Research Collection

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