The Chancellor of the Exchequer announced that the Government are going to bring forward regulations to enable businesses to defer payment of 60% of the increase in this year's rate bills until 2010/11 and 2011/12.
Once the regulations are in place (expected to be July 2009), Billing Authorities will write to ratepayers offering the option to defer part of this year's increase in liability. Until then, ratepayers must continue to pay the current rate accounts that they have received for 2009/10. Any deferred amount will be added to the 2010/11 and 2011/12 rate accounts.
At present this proposal only applies to England as the Scottish Parliament, the Northern Ireland Assembly and the Welsh Assembly are responsible for determining whether a similar deferral scheme should apply in their areas.
The reason given by the Government for introducing the new regulations is:
"...to provide a smoother profile of business rates payments over the next three years. RPI is widely forecast to be negative later this year, which would have a downward pressure on 2010/11 bills. This scheme offers businesses the chance to pay a lower increase in 2009/10, and make up the payments in the following two years."
Source: Drivers Jonas