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The Effects of Rating Reform in Britain: A Case Study of Derby

The likely effects of a proposed reform to the British domestic rating system are examined. Data for Derby suggest that using capital values to determine rates would correct the anomalies in rateable values which at present exist between individual properties in different areas of a town. It would also result in rate burdens shifting from newer to older, from smaller to larger, and from cheaper to more expensive properties. In addition, burdens would shift away from less desirable districts of a town. That capital values are so influenced by such speculative social factors poses problems in changing to a capital basis for evaluating rates.