MORE than 50,000 companies in the North-East yesterday discovered that their business rate bills will fall next year as a result of the five-yearly revaluation of property.

The Valuation Office is letting businesses in England know their new rateable values ahead of bills being issued in March next year, with bills for about 67 per cent of North- East businesses likely to fall.

Figures for North Yorkshire were unavailable.

In the North-East, rates for office-based and industrial businesses will fall by about two per cent, while retail premises will remain broadly the same.

Other firms, however, will face increases of three per cent.

Overall, as result of revaluation and the relief arrangements, a million businesses nationwide will benefit from an average fall of £770 in 2010- 11.

But the The Forum of Private Business (FPB), which represents thousands of small businesses in the UK, warned that a significant number would still lose out.

The Government yesterday said it was putting in place a £2bn relief scheme, funded by businesses, to limit and phase in any increases.

Local Government Minister Rosie Winterton said: “The revaluation will make sure each business pays its fair contribution and no more. It will not raise a single extra penny for Government.

“Most businesses in the North-East will see an overall reduction in their rate bills next year, with some of the largest decreases in sectors such as industry and manufacturing.”

A FPB spokesman said: “While the majority of businesses will see their rates go down, there will be a significant number that will lose out because of this, and this is why these members need a proper system of transitional relief in place.”