Business rates (or National Non Domestic Rates NNDR) are charged on most non domestic properties such as:
Business rates are set by the government and go towards paying for services provided by the local council such as street lighting, road maintenance and planning.
Previously, business rates were collected by councils and given to the government. The money was then redistributed back out to councils through a series of grants – this changed in April 2013.
Now, local councils keep a portion of the business rates that have been generated by new business growth – this is known as the Business Rates Retention Scheme. The scheme means that councils have a greater incentive to encourage and develop new business growth in their area.