The rate in the pound is a set each year by the Government and can only increase by the rate of inflation, except in a year when there is a revaluation of properties. Revaluations currently take place every five years and the most recent one was in 2005.
In a revaluation year the rate in the pound is adjusted to take account of the change in the overall rateable value for the whole country. This is to ensure that the proportion of tax raised nationally through non-domestic rates remains the same following a revaluation. At the most recent revaluation the rate in the pound was reduced to take account of a general increase in rateable value.
Between revaluations the rate in the pound increases each year by the rate of inflation. The rate of inflation is worked out by comparing the Retail Price Index at the end of September before the start of the financial year, with the Retail Price Index for the previous September.
By law the rate in the pound is always worked out to three decimal places (that is one tenth of a penny).
The table shows the rate in the pound, and the inflation factor, for each year since non-domestic rates were introduced in 1990. Revaluation years are show with (R) next to the year.
| Financial Year | 2007/08 | 2006/07 | 2005/06 (R) |
| Rate in pound £ | 0.444 | 0.433 | 0.422 |
| Small Business Rate in pound £ | 0.441 | 0.426 | 0.415 |
| Inflation (%) | 1.04 | 2.6 | 3.1 |
| Financial Year | 2004/05 | 2003/04 | 2002/03 | 2001/02 | 2000/01 (R) |
| Rate in Pound £ | 0.456 | 0.444 | 0.437 | 0.430 | 0.416 |
| Small property rate in pound £ | - | - | - | - | - |
| Inflation (%) | 2.70 | 1.70 | 1.70 | 3.37 | n/a |
| Financial Year | 1999/00 | 1998/99 | 1997/98 | 1996/97 | 1995/96 (R) |
| Rate in Pound £ | 0.489 | 0.474 | 0.458 | 0.449 | 0.432 |
| Small property rate in pound £ | 0.480 | 0.465 | 0.449 | - | - |
| Inflation (%) | 3.16 | 3.49 | 2.00 | 3.94 | n/a |
| Financial Year | 1994/95 | 1993/94 | 1992/93 | 1991/92 | 1990/91 (R) |
| Rate in Pound £ | 0.423 | 0.419 | 0.402 | 0.386 | 0.348 |
| Small property rate in pound £ | - | - | - | - | - |
| Inflation (%) | 0.95 | 4.23 | 4.15 | 10.92 | n/a |
An example charge for a property with a rateable value of £15,000 in 2002/03 would be:
£15,000 x £0.433 = £6,495
The charge may also be affected by transitional arrangements or other types of relief or reductions.
