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Publication - Research and analysis

Small Business Bonus Scheme: evaluation

Published
8 March 2022
From
Director-General Communities
Part of
Business, industry and innovation
ISBN
9781804350003

This report presents the results of an evaluation of the Small Business Bonus Scheme (SBBS), and provides recommendations in relation to the SBBS and non-domestic rates relief more broadly.

View supporting documents Supporting documents

Appendix E: Additional tables and results from the econometric analysis

Figure E.1: RV distribution in the restricted sample, £500 RV bands using draft RVs
A histogram of the rateable value distribution of the restricted sample used for the econometric analysis showing that the mean RV in the sample is £7,731 with a standard deviation 4,513.

Note: Properties/enterprises are grouped into £500 RV bands. For example, the bar between 0-£500 groups all properties with a RV in the range.

Table E.1: Mean and variation (standard deviation) in turnover and employment across the RV distribution, by £1,000 RV bands among shops
  Full sample SBBS claimers
  Turnover Employment Turnover Employment
£1,000 187 3 167 3
(201) (4) (152) (4)
£2,000 12,513 90 145 2
(189,668) (1,334) (156) (3)
£3,000 192 3 171 3
(587) (13) (200) (4)
£4,000 187 3 179 3
(249) (4) (207) (3)
£5,000 865 13 199 4
(16,164) (256) (331) (25)
£6,000 212 4 206 4
(388) (8) (370) (8)
£7,000 232 4 229 4
(521) (6) (526) (6)
£8,000 254 4 240 4
(470) (7) (436) (7)
£9,000 1,528 24 1,573 25
(38,213) (588) (38,990) (600)
£10,000 773 10 241 4
(10,970) (112) (255) (6)
£11,000 13,235 9 13,687 7
(308,463) (67) (316,884) (52)
£12,000 862 12 285 5
(9,827) (98) (437) (9)
£13,000 478 10 406 10
(2,259) (94) (1,997) (98)
£14,000 346 6 297 6
(608) (8) (394) (6)
£15,000 324 6 309 5
(376) (6) (347) (5)
£16,000 417 8 321 6
(658) (13) (302) (6)
£17,000 4,280 57 1,024 13
(37,908) (562) (7,080) (82)
£18,000 485 8 408 7
(1,335) (10) (889) (10)
£19,000 1,372 29    
(7,050) (156)    
£20,000 790 90    
(2,042) (1,334)    

Note: The 'Max. RV' represents the maximum RV within each band, where each band starts immediately above the maximum of that which precedes it. Numbers are means, standard deviation are in parentheses. See Appendix Table E.9 for sample sizes within each RV band.

Table E.2: Mean and variation (standard deviation) in turnover and employment across the RV distribution, by £1,000 RV bands among offices
  Full sample SBBS claimers
  Turnover Employment Turnover Employment
£1,000 146,909 340 170,104 325
(1530304) (2,960) (1660396) (3,148)
£2,000 4,138 37 2,263 8
(26,834) (527) (19,568) (31)
£3,000 2,458 20 2,432 19
(34,624) (167) (36,512) (176)
£4,000 4,189 24 2,755 23
(36,993) (237) (24,356) (251)
£5,000 4,321 43 1,991 26
(47,114) (468) (19,865) (390)
£6,000 2,286 18 1,584 14
(14,615) (96) (11,634) (70)
£7,000 5,115 18 2,730 10
(34,666) (96) (19,394) (37)
£8,000 9,767 25 7,981 9
(125,862) (223) (126,807) (18)
£9,000 3,347 24 2,167 20
(18,524) (98) (10,970) (92)
£10,000 3,093 34 1,256 19
(15,966) (184) (3,937) (102)
£11,000 4,975 32 1,458 14
(44,303) (231) (6,641) (65)
£12,000 1,737 31 1,638 30
(5,237) (150) (5,099) (153)
£13,000 3,580 25 2,776 20
(14,294) (74) (13,264) (60)
£14,000 4,463 33 1,693 18
(19,778) (131) (7,753) (67)
£15,000 366,567 66 2,025 30
(4172657) (394) (6,478) (115)
£16,000 13,215 157 12,378 182
(63,134) (583) (73,083) (693)
£17,000 10,555 68 1,978 21
(45,611) (196) (5,836) (47)
£18,000 89,171 61 1,083 14
(753,163) (367) (2,692) (20)
£19,000 24,654 79    
(147,972) (389)    
£20,000 28,689 37    
(75,290) (527)    

Note: The 'Max. RV' represents the maximum RV within each band, where each band starts immediately above the maximum of that which precedes it. Numbers are means, standard deviation are in parentheses. See Appendix Table E.10 for sample sizes within each RV band.

Table E.3: Mean and variation (standard deviation) in turnover and employment across the RV distribution, by £1,000 RV bands among industrial subjects
  Full sample SBBS claimers
  Turnover Employment Turnover Employment
£1,000 729 6 224 3
(9,432) (53) (364) (10)
£2,000 1,631 14 342 3
(21,498) (108) (1,326) (11)
£3,000 2,627 18 557 5
(32,182) (170) (3,914) (33)
£4,000 4,024 27 444 4
(83,580) (577) (2,148) (9)
£5,000 713 10 485 6
(3,994) (96) (1,807) (26)
£6,000 1,361 10 762 6
(10,870) (69) (3,525) (17)
£7,000 1,159 11 629 6
(6,193) (68) (2,626) (15)
£8,000 1,307 12 1,022 10
(9,518) (87) (9,130) (84)
£9,000 1,988 18 1,886 16
(25,373) (196) (25,937) (198)
£10,000 1,395 14 1,178 13
(7,097) (91) (6,691) (91)
£11,000 933 9 756 7
(1,757) (14) (1,208) (9)
£12,000 3,671 18 1,721 10
(23,865) (83) (13,138) (29)
£13,000 6,357 27 1,063 9
(57,402) (213) (3,722) (15)
£14,000 3,141 13 1,747 10
(17,322) (35) (10,998) (18)
£15,000 2,501 18 1,199 10
(11,378) (87) (2,847) (16)
£16,000 3,540 29 2,653 22
(13,375) (94) (13,671) (93)
£17,000 4,559 21 1,371 12
(27,438) (88) (2,762) (18)
£18,000 3,325 26 1,504 11
(11,059) (105) (3,210) (12)
£19,000 3,389 21    
(15,135) (63)    
£20,000 10,293 14    
(47,058) (108)    

Note: The 'Max. RV' represents the maximum RV within each band, where each band starts immediately above the maximum of that which precedes it. Numbers are means, standard deviation are in parentheses. See Appendix Table E.11 for sample sizes within each RV band.

Table E.4: Mean and variation (standard deviation) in turnover and employment across the RV distribution, by £1,000 RV using draft RVs
  Full sample SBBS claimers
  Turnover Employment Turnover Employment
£1,000 27,298 66 28,865 57
(653,964) (1,267) (682,026) (1,293)
£2,000 3,774 31 741 5
(77,960) (614) (7,779) (23)
£3,000 1,631 13 846 7
(26,021) (141) (18,757) (90)
£4,000 2,327 16 811 8
(50,608) (346) (11,561) (120)
£5,000 1,140 17 638 10
(15,701) (280) (9,531) (188)
£6,000 996 9 727 7
(10,543) (75) (8,665) (58)
£7,000 1,129 8 869 6
(13,043) (54) (11,466) (25)
£8,000 2,417 11 1,921 7
(55,619) (108) (55,512) (46)
£9,000 1,010 11 898 9
(14,552) (115) (14,740) (115)
£10,000 1,693 16 707 10
(19,788) (138) (4,109) (66)
£11,000 7,103 10 7,265 7
(217,024) (54) (225,078) (38)
£12,000 1,425 14 645 9
(12,611) (79) (2,091) (27)
£13,000 2,194 15 1,067 10
(27,518) (130) (9,207) (71)
£14,000 4,728 96 970 19
(70,618) (2,123) (9,175) (284)
£15,000 2,833 16 2,403 12
(39,859) (88) (41,794) (74)
£16,000 3,833 33 2,839 29
(31,398) (230) (32,080) (239)
£17,000 96,177 48 1,172 12
(2098491) (418) (6,408) (56)
£18,000 15,752 22 671 8
(303,311) (160) (1,890) (11)
£19,000 4,486 26    
(52,650) (164)    
£20,000 6,268 31    
(35,041) (614)    

Note: The 'Max. RV' represents the maximum RV within each band, where each band starts immediately above the maximum of that which precedes it. Numbers are means, standard deviation are in parentheses. See Appendix Table E.12 for sample sizes within each RV band.

Figure E.2: Regression discontinuity plots, sample restricted to eligible claimers that are "smaller" businesses that are shops
Figure described in paragraph above

Note: Panels containing ABS turnover, total output and GVA are from the ABS and so use fewer observations. Restrictions are turnover ABS, total output, GVA and turnover BSD <£5,000,000; employees < 100. Bin size is £500. See Table E.9 for bin counts. For disclosure reasons, businesses with an RV below £1,000 are excluded due to a sample size of fewer than 10 in the £0-£500 bin.

Figure E.3: Regression discontinuity plots, sample restricted to eligible claimers that are "smaller" businesses that are offices
Figure described in paragraph above

Note: Panels containing ABS turnover, total output and GVA are from the ABS and so use fewer observations. Restrictions are turnover ABS, total output, GVA and turnover BSD <£5,000,000; employees < 100. Bin size is £500.

Figure E.4: Regression discontinuity plots, sample restricted to eligible claimers that are "smaller" businesses that are industrial subjects
Figure described in paragraph above

Note: Panels containing ABS turnover, total output and GVA are from the ABS and so use fewer observations. Restrictions are turnover ABS, total output, GVA and turnover BSD <£5,000,000; employees < 100. Bin size is £500.

Table E.5: Regression discontinuity estimates of the effect of 100% versus 25% SBBS relief for single property, single-site enterprises in receipt of relief, shops subjects only
  Local linear Local quadratic
  (1) Full claimer sample (2) Restrictions (3) Full claimer sample (4) Restrictions
BSD Turnover (£000s) 45.35* (24.22) 45.35* (24.22) 72.62*** (15.26) 72.62*** (15.26)
N 10,103 10,090 10,103 10,090
Effective N 516 516 516 516
BSD Employment 1.49*** (0.14) 1.49*** (0.14) 1.88*** (0.17) 1.88*** (0.17)
N 10,103 10,089 10,103 10,089
Effective N 516 516 516 516
ABS turnover (£000s) 257.29*** (55.23) 77.14*** (20.22) 164.35*** (18.91) 162.55*** (19.95)
N 9,117 9,099 9,117 9,099
Effective N 472 471 472 471
N 9,117 9,108 9,117 9,108
Effective N 472 472 472 472
ABS GVA (£000s) 31.53*** (11.52) 31.53*** (11.52) 70.82*** (13.08) 70.82*** (13.08)
N 9,117 9,114 9,117 9,114
Effective N 472 472 472 472

Note: *, **, and *** indicate statistical significance at 10%, 5%, and 1% respectively. Standard errors are in parentheses. Effective N is the number of observations within £1,000 of the 100% SBBS threshold. Panels containing ABS turnover, total output and GVA automatically use fewer observations. Restrictions are turnover ABS, total output, GVA and turnover BSD <£5,000,000; employees < 100.

Table E.6: Regression discontinuity estimates of the effect of 100% versus 25% SBBS relief for single property, single-site enterprises in receipt of relief, offices only
  Local linear Local quadratic
  (1) Full claimer sample (2) Restrictions (3) Full claimer sample (4) Restrictions
BSD Turnover (£000s) 652.29 (2,548.21) 520.93* (159.55) -4,265.96 (3,427.42) 885.16*** (523.12)
N 4,310 4,138 4,310 4,138
Effective N 151 140 151 140
BSD Employment 5.46 (12.49) 3.77* (0.37) 17.90 (38.49) 3.40* (0.29)
N 4,310 4,217 4,310 4,217
Effective N 151 143 151 143
ABS turnover (£000s) 257.29* (55.23) -116.11 (92.30) 1,552.18* (375.40) 129.67 (359.45)
N 3,686 3,647 3,686 3,647
Effective N 123 119 123 119
ABS output (£000s) 950.72* (330.40) -218.97** (111.13) 1,475.93* (397.84) 49.60 (386.05)
N 3,686 3,652 3,686 3,652
Effective N 123 119 123 119
ABS GVA (£000s) 992.87* (245.97) -71.93** (33.26) 1,234.99* (211.35) 37.38 (183.40)
N 3,686 3,674 3,686 3,674
Effective N 123 122 123 122

Note: *, **, and *** indicate statistical significance at 10%, 5%, and 1% respectively. Standard errors are in parentheses. Effective N is the number of observations within £1,000 of the 100% SBBS threshold. Panels containing ABS turnover, total output and GVA automatically use fewer observations. Restrictions are turnover ABS, total output, GVA and turnover BSD <£5,000,000; employees < 100.

Table E.7: Regression discontinuity estimates of the effect of 100% versus 25 % SBBS relief for single property, single-site enterprises in receipt of relief, industrial subjects only
  Local linear Local quadratic
  (1) Full claimer sample (2) Restrictions (3) Full claimer sample (4) Restrictions
BSD Turnover (£000s) 1,505.64* (357.32) 156.30* (51.36) 756.31 (621.36) 161.01** (77.20)
N 7,007 6,881 7,007 6,881
Effective N 302 289 302 289
BSD Employment 2.44 (2.93) 0.50 (0.94) -3.42 (4.72) -2.68* (0.74)
N 7,007 6,972 7,007 6,972
Effective N 302 300 302 300
ABS Turnover (£000s) 257.29* (55.23) -85.36 (60.88) 319.77* (77.82) -89.30 (90.34)
N 6,518 6,474 6,518 6,474
Effective N 284 278 284 278
ABS Output (£000s) -53.45 (95.08) -93.17 (75.46) -335.18* (31.42) -306.58* (23.00)
N 6,518 6,493 6,518 6,493
Effective N 284 281 284 281
ABS GVA (£000s) 13.33 (37.83) 13.33 (37.83) -100.19* (13.59) -100.19* (13.59)
N 6,518 6,510 6,518 6,510
Effective N 284 284 284 284

Note: *, **, and *** indicate statistical significance at 10%, 5%, and 1% respectively. Standard errors are in parentheses. Effective N is the number of observations within £1,000 of the 100% SBBS threshold. Panels containing ABS turnover, total output and GVA automatically use fewer observations. Restrictions are turnover ABS, total output, GVA and turnover BSD <£5,000,000; employees < 100.

Table E.8: Regression discontinuity estimates of the effect of 100% versus 25 % SBBS relief for single property, single-site enterprises in receipt of relief, those who did not successfully appeal their RV
  Local linear Local quadratic
  (1) Full claimer sample (2) Restrictions (3) Full claimer sample (4) Restrictions
BSD Turnover (£000s) 217.96** (92.53) 159.68* (32.81) -84.36 (797.82) 263.89* (59.35)
N 19,130 18,898 19,130 18,898
Effective N 782 766 782 766
BSD Employment -5.30 (3.36) 1.97* (0.16) 2.09 (5.06) 2.19* (0.60)
N 19,130 19,014 19,130 19,014
Effective N 782 773 782 773
ABS turnover (£000s) 79.44** (37.39) 109.03 (67.29) 198.87*** (106.67) 197.30** (89.02)
N 16,656 16,570 16,656 16,570
Effective N 679 675 679 675
ABS output (£000s) 30.09 (45.57) 44.77 (66.93) 39.53 (108.60) 43.41 (98.42)
N 16,656 16,594 16,656 16,594
Effective N 679 675 679 675
ABS GVA (£000s) 15.77 (26.18) 24.34 (33.53) 19.28 (54.08) 14.76 (52.97)
N 16,656 16,632 16,656 16,632
Effective N 679 678 679 678

Note: *, **, and *** indicate statistical significance at 10%, 5%, and 1% respectively. Standard errors are in parentheses. Effective N is the number of observations within £1,000 of the 100% SBBS threshold. Panels containing ABS turnover, total output and GVA automatically use fewer observations. Restrictions are turnover ABS, total output, GVA and turnover BSD <£5,000,000; employees < 100.

Table E.9: RV distributions among shops only
RV bin (£1000) N Overall Claimers "Small" claimers RV bin (£500) N Overall Claimers "Small" claimers
1000 >30 - <30 500 <10 <10 <10
2000 255 233 216 1000 >20 - >20
3000 698 665 608 1500 72 - 58
4000 1,025 975 921 2000 183 169 158
5000 1,195 1,138 1,059 2500 305 292 265
6000 1,245 1,184 1,108 3000 393 373 343
7000 1,090 1,036 975 3500 470 451 432
8000 1,027 975 910 4000 555 524 489
9000 941 891 837 4500 580 546 506
10000 831 785 735 5000 615 592 553
11000 615 571 545 5500 632 609 566
12000 584 528 492 6000 613 575 542
13000 476 423 396 6500 538 511 476
14000 395 361 346 7000 552 525 499
15000 428 387 367 7500 516 488 460
16000 224 194 186 8000 511 487 450
17000 232 184 174 8500 486 458 429
18000 232 196 188 9000 455 433 408
19000 >100 >100 105 9500 421 398 367
20000 >100 >100 99 10000 410 387 368
        10500 305 283 265
        11000 310 - 280
        11500 309 283 262
        12000 275 245 230
        12500 251 226 210
        13000 225 197 186
        13500 224 206 195
        14000 171 - 151
        14500 192 - 170
        15000 236 209 197
        15500 96 - 84
        16000 128 - 102
        16500 108 - 81
        17000 124 - 93
        17500 115 - 95
        18000 117 - 93
        18500 >50 - >50
        19000 >50 - >50
        19500 >60 - >60
        20000 >40 - >40

Note: "Small" businesses have a BSD turnover <£5,000,000. Redactions required due to small sample size or small difference in sample sizes.

Table E.10: RV distributions among offices only
RV bin (£1000) N Overall Claimers "Small" claimers RV bin (£500) N Overall Claimers "Small" claimers
1000 118 - 92 500 <20 <20 <20
2000 500 428 395 1000 100 - 82
3000 563 487 458 1500 212 184 169
4000 531 456 416 2000 288 244 226
5000 553 500 465 2500 281 248 233
6000 464 430 403 3000 282 239 225
7000 345 315 293 3500 285 240 217
8000 378 340 324 4000 246 216 199
9000 316 282 259 4500 271 246 234
10000 281 239 220 5000 282 254 231
11000 238 215 199 5500 229 211 196
12000 189 157 145 6000 235 219 207
13000 171 139 127 6500 184 165 155
14000 131 - 102 7000 161 150 138
15000 134 - 101 7500 195 - 169
16000 79 - 44 8000 183 - 155
17000 71 - 45 8500 150 136 126
18000 77 - 50 9000 166 146 133
19000 >40 - >40 9500 141 - 113
20000 45 - 32 10000 140 118 107
        10500 >100 - >90
        11000 129 - 108
        11500 104 - 82
        12000 85 - 63
        12500 84 - 61
        13000 87 - 66
        13500 66 - 49
        14000 65 - 53
        14500 >40 - >40
        15000 87 - 60
        15500 41 - 23
        16000 38 - 21
        16500 50 - 32
        17000 >20 - >10
        17500 43 - 25
        18000 >30 - >20
        18500 100 - 18
        19000 212 - 23
        19500 288 - 17
        20000 281 - 15

Note: "Small" businesses have a BSD turnover <£5,000,000. Redactions required due to small sample size or small difference in sample sizes.

Table E.11: RV distributions among industrial subjects only
RV bin (£1000) N Overall Claimers "Small" claimers RV bin (£500) N Overall Claimers "Small" claimers
1000 435 379 367 500 173 - 138
2000 645 591 566 1000 262 - 229
3000 680 629 599 1500 302 277 263
4000 703 647 614 2000 343 314 303
5000 667 619 602 2500 331 304 293
6000 661 617 586 3000 349 325 306
7000 617 589 564 3500 356 329 316
8000 599 554 522 4000 347 318 298
9000 555 520 494 4500 312 - 282
10000 515 478 449 5000 355 - 320
11000 362 324 310 5500 328 309 295
12000 312 274 264 6000 333 308 291
13000 274 242 232 6500 312 295 282
14000 240 208 195 7000 305 294 282
15000 245 209 194 7500 304 278 265
16000 157 - 122 8000 295 276 257
17000 144 - 105 8500 298 285 273
18000 155 - 96 9000 257 235 221
19000 119 - 106 9500 245 223 209
20000 100 - 84 10000 270 255 240
        10500 185 172 162
        11000 177 - 148
        11500 155 - 133
        12000 157 - 131
        12500 145 - 122
        13000 129 - 110
        13500 122 - 105
        14000 118 - 90
        14500 112 - 84
        15000 133 120 110
        15500 74 - 58
        16000 83 - 64
        16500 71 - 55
        17000 73 - 50
        17500 67 - 43
        18000 88 - 53
        18500 57 - 47
        19000 >60 - <60
        19500 >50 - >50
        20000 >30 - >30

Note: "Small" businesses have a BSD turnover <£5,000,000. Redactions required due to small sample size or small difference in sample sizes.

Table E.12: RV distributions using draft RVs
Draft RV bin (£1000) Overall Overall claimers Overall "small" claimers Constant Constant claimers Constant "small" claimers
1000 642 583 559 579 526 504
2000 1,551 1,420 1,338 1,369 1,259 1,191
3000 2,063 1,905 1,799 1,818 1,680 1,584
4000 2,209 2,049 1,931 1,966 1,829 1,721
5000 2,368 2,210 2,093 2,093 1,957 1,852
6000 2,294 2,157 2,029 2,047 1,931 1,818
7000 2,015 1,908 1,805 1,777 1,687 1,604
8000 2,010 1,875 1,768 1,761 1,641 1,550
9000 1,840 1,712 1,615 1,585 1,477 1,394
10000 1,657 1,537 1,446 1,432 1,325 1,246
11000 1,229 1,109 1,060 1,067 966 924
12000 1,186 1,065 1,005 987 881 836
13000 989 872 821 809 706 665
14000 836 728 698 696 609 582
15000 763 656 620 607 523 495
16000 623 526 498 423 342 327
17000 544 444 419 426 336 321
18000 487 382 362 390 298 284
19000 372 351 333 258 - 243
20000 313 >300 273 224 - 197

Note: "Small" businesses have a BSD turnover <£5,000,000. Redactions required due to small sample size or small difference in sample sizes.

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