A leading rating expert has expressed his shock at the Government’s decision to delay the next business rates revaluation until 2017.
John Hayward, Head of Rating at national firm of Chartered Surveyor’s Eddisons, said the decision was completely unexpected and badly thought out.
‘This delays any hope of rateable values being realigned with lower rents, as opposed to current rateable values, which are based on rents in 2008, when the market was at its peak.’
The revaluation was due to take place on April 1st 2015, in line with the standard five yearly timetable, linking rates to rents in 2013. However, the Department for Communities and Local Government says the delay ensures businesses will not receive unexpected rises in business rates over the next five years.
In response, Mr Hayward said: ‘It is incredible that the Government think they are supporting businesses by giving them certainty, when in the vast majority of cases they would be paying significantly less in 2015, when the revaluation was due to take place.
‘Business rates are a significant bottom line cost to all businesses and this announcement will do nothing to help them, particularly given the tough trading conditions currently being experienced.’
The effect of the decision could be felt hardest in areas such as Yorkshirewhere businesses have seen rents fall, but are still being charged business rates set prior to the recession.
‘We will be working with business organisations, retailers and other interest groups in lobbying the Government to rethink this decision,’ promised Mr Hayward.
Richard joined Eddisons in 2003 and has been the Managing Partner since 2012, a role that sees him lead the strategic direction and development of the business under the ownership of Begbies Traynor Group plc. Richard has been instrumental in the growth of the business which has seen turnover more than double since 2008.
In addition to his role as Managing Partner, Richard continues to play a vital role with key clients, particularly in the banking sector, where he is a trusted adviser to major high street clearing banks. Over the last eight years, Richard has been appointed LPA Receiver on many high profile properties and assists in the recovery of distressed loan portfolios.
Prior to joining Eddisons, Richard worked in the real estate division of a 'Big Four' firm where his notable assignments included the privatisation of Saudi Telecom for flotation on the New York Stock Exchange.