The Incidence of Business Rates on Household Income in the United Kingdom, 1979

Abstract

The incidence of local business rates on household incomes in the United Kingdom is examined by means of Input–Output Tables. Full forward shifting into prices is assumed and local rates are treated as an indirect tax on intermediate goods and services. Input–Output Tables and Family Expenditure Survey data for 1979 are used to identify the incidence of business rates by category of expenditure and household type. The analysis reveals that business rates are markedly regressive.