uniform business rate

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Uniform Business Rate

Also called the UBR. The local tax rate for commercial property in England and Wales. The rate changes every year due to inflation. Even though it is paid to local governments, it is determined by the central government.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

uniform business rate (UBR)

the annual charge made by local authorities in England and Wales on business premises, factories, warehouses, offices and shops. The UBR is fixed at a set rate throughout the country (for 2005/06 the rate has been fixed at 42.2p in the £). Thus, for any given premises anywhere in England and Wales the rate payable is calculated simply by multiplying the above rates by the assessed rateable value of the premises. The UBR came into effect in April 1990, replacing the previous system of rating which gave individual local authorities discretion in setting the base rates payable in their particular areas. Inevitably, this created anomalies with large variations from area to area, as some authorities increased their local services and put the burden of paying a higher proportion of the bill on to businesses rather than householders. The introduction of the UBR required all business premises to be revalued at 1990 prices with further revaluations scheduled every five years.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson

uniform business rate (UBR)

the annual charge in England and Wales on business premises. The UBR, along with the ‘council tax’ (see LOCAL TAX) and central government grants, is used to finance local authority spending. Although the UBR is paid by businesses to the particular local authority in whose area their premises are located, the UBR itself is fixed at one set (‘uniform’) rate throughout the country by the government.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
References in periodicals archive ?
Claire explains: "The double whammy of reduced rateable values coupled with a reduction in the Uniform Business Rate could have been a breath of fresh air for many troubled businesses in the north, especially in the manufacturing sector where the severe curtailment of empty rates relief has been the final nail in the coffin for some operators.
Arranging the rate support grant, policing the council tax, and setting the uniform business rate ought to lie with the Treasury, where the background control it has always exerted can be exposed and thus made accountable.
Companies throughout Scotland are facing rises of 3.5 per cent in the uniform business rate.
"In addition, the polarisation between prime and secondary commercial space will see an overall shortfall in the overall rateable value pool, which will force the government to significantly increase the Uniform Business Rate (UBR) - potentially above 60p."
This multiplier, known as the Uniform Business Rate (UBR), is linked to the Retail Prices Index (RPI) and it is this link that is currently bad news for business ratepayers.
In theory, as the rateable value pool grows the uniform business rate or multiplier should fall (based on government statistics) by up to 12%.
Colin Stratton, FSB's regional chairman for the North-east, said: "Basing an increase in business rates on inflation data from last year would have added to the increase in costs already faced by many small businesses." The 2009 Uniform Business Rate (UBR) is set by tracking inflation as of September 30, 2008, 5%.
Today the Federation of Small Businesses (FSB) called on the government to drop its plans, pointing out the uniform business rate was established in 1990 specifically to prevent councils in certain areas of the country from hitting firms with inflation-busting business rate rises.
City rating specialist David Evans said companies would see the Uniform Business Rate (UBR) tax rise 2.7 per cent from April 1.
Specific measures already indicated by the Chancellor include allowing local councils to keep more of the uniform business rate that they levy, to encourage them to help local businesses to start up.
The uniform business rate, which is set by the Government, was brought it because of the wildly differing charges which were applied to similar businesses across Scotland.

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