DEFINITION of 'Uniform Business Rate'
A multiplier used in England and Wales to determine how much money owners of commercial and industrial properties must pay each year to their local governments. The rate, set by central government, is adjusted for inflation each year. It is multiplied by the property's free-market rental value to determine the sum owed. Each property's rateable value is adjusted every five years. While the funds are collected by local governments, they are pooled nationally and redistributed according to a population formula.
BREAKING DOWN 'Uniform Business Rate'
For 2009-10, the uniform business rate was 48.1% in England and 48.9% in Wales. London establishes its own rate, which was 48.9% in 2009-10. The rate for small businesses is slightly lower.