What is the Multiplier or Rate Poundage?
This is a value set by central government. For the year commencing 1 April 2005 there are two multipliers; the standard non-domestic rating multiplier and the small business non-domestic rating multiplier. The former is higher to pay for the small business rate relief. The Goverment sets the multipliers for each financial year for the whole of England. The Goverment normally changes both multipliers every year in line with inflation. By law, the multipliers cannot go up by more than the rate of inflation apart from some minor adjustments to counteract losses from appeals and in relation to the standard multiplier, to pay for the small business rate relief. In the year of a revaluation it is set at a level which will keep the total amount raised in rates after the revaluation the same as before, plus inflation for that year. The current multipliers are 42.2p and 41.5p.
