Business rates - explanatory notes
Non-domestic rates, or business rates, collected by local authorities, are the way that those who occupy non-domestic property contribute towards the cost of local services.
Under the business rates retention arrangements introduced from 1 April 2013, authorities keep a proportion of the business rates paid locally. This provides a direct financial incentive for authorities to work with local businesses to create a favourable local environment for growth since authorities will benefit from growth in business rates revenues.
The money, together with revenue from council tax payers and certain other sums, is used to pay for the services provided by local authorities in your area.