Rates Revaluation delay - bad news for Business
The Government’s recent announcement postponing the 2015 business rates revaluation until 2017 is bad news for already struggling businesses worst hit by the recession, particularly retailers and the pub trade, says Gloucestershire Chartered Surveyor Guy Welfare.
“The decision means businesses will continue to pay rates for a further two years based on property rents in April 2008, when values were close to their peak,” said Guy, a business rates specialist. “The 2015 revaluation would have reflected the large fall in rents over the past few years bringing much needed rates reductions to many businesses.”
“While the Government claims the decision will avoid unexpected hikes in business rates bills over the next five years, in reality it will delay much needed relief to those businesses which have been hit hardest by the recession, in particular retailers and the pub trade,” added Guy.
“I suspect the real reasons may be more closely connected to the likely falls in assessment for many properties, and hence reduction in Government business rates revenues. This announcement reinforces the importance of taking professional advice on minimising business rates liability by appeal or other means, given it will now be a further 4½ years before the next revaluation.”
