Interactive: How will business rates actually change where you live, after official figures are labelled 'misleading'?

Surrey council leader tells of 'gentleman's agreement' with cabinet ministers over funding for social care

Sajid Javid is facing widespread criticism after his projected business rate changes were called into question by an expert report.

Business rates are scheduled to change this year after being frozen since 2010. Given the large increase in property rental prices during this period, the increase in some areas is expected to be very high.

But according to a report by Gerald Eve, experts in business rates, the Government's figures are underestimates because they do not take into account inflation or "appeals adjustments".

Business rates changes - postcode Business rates changes - LA

Mr Javid wrote to all Conservative MPs on Saturday insisting that most firms will not see any rise in their bills.

Mr Javid's letter,  which was also signed by the Treasury Chief Secretary David Gauke, assured MPs that rates would fall in 250 of the 329 local billing authority areas in England.

However, Gerald Eve say that the Government has - by ignoring inflation and appeals adjustments - presented figures which are five to seven percentage points lower than they should be.

When these assumptions were removed, analysts said only 135 councils would see a fall in business rates, with 191 seeing increases.

This includes 11 councils areas where the Government predicted that business rates would fall by around one per cent, but where Gerald Eve predicts rates will actually increase by six per cent.

Both sides have trashed-talked each other

Jerry Schurder, head of business rates at Gerald Eve, said: "The figures provided to Tory MPs show that the DCLG [Department for Communities and Local Government] is living in a parallel universe."

So far the Government has refused to acknowledge any failings in their figures and have responded robustly to the claims from Gerald Eve.

A Department for Communities and Local Government spokesman said: "This latest claim from (rating agent) Gerald Eve is nonsense - we have been clear how our figures are calculated and what they include.

"Councils and businesses can see how the revaluation is making bills fairer and is revenue neutral.

"This is yet more scaremongering, when in reality the revaluation will mean businesses in 80 per cent of council areas will see an average fall in their business rates bills due to revaluation before inflation."

Business Rates Reform | Details of the proposed changes

Who is right?

Both sets of figures could be considered correct.

The Government has specified how their analysis was calculated and by this token their projected changes to business rates can technically be considered 'correct' based on the criteria they've used.

However, the issue lies in whether these figures are misleading due to the fact that they fail to take account of some important factors.

If, as Gerald Eve suggests, the Government's rates are underestimates to the tune of five to seven percentage points this could mean that business owners have to fork out hundreds - if not thousands - of pounds more than they were expecting to in 2017.

The proof will come when the new rates kick-in in April - but until then confusion seems to be the order of the day.