The Government’s decision to postpone the next business rates revaluation from 2015 until 2017 has been criticised by a leading rating expert.
Rod Edwards, Rating Director at national firm of Chartered Surveyors Eddisons said the decision, now passed as an Act of Parliament within the Growth and Infrastructure Bill, was bad news for business.
‘This is a badly thought out move by Government, which will prevent any hope of rateable value realignment which ratepayers so desperately need. At the moment they are based on rents in 2008, when the market was at its peak.
‘With a 2.7% increase for rates bills confirmed from 1st April this year, the business rates burden will only continue to hit bottom line costs.’
The delay means that business rates liabilities will continue to increase in line with RPI through until the 2016/2017 rate year.
The effect of the decision could be felt hardest in areas such asYorkshirewhere businesses have seen rents fall, but are still being charged business rates set prior to the recession.
Mr Edwards went on to say that there was also a lack of clarity on the appeal regulations going forward, which the Government needs to address.
‘Under the current rating appeal legislation it would be possible to lodge an appeal against a 1st April 2010 rateable value, up until 31st March 2015.
‘The two year postponement could mean that current ratepayers would not be able to lodge a valid compiled list appeal between 1st April 2015 and 31st March 2017, which could potentially lead to savings back to 1st April 2010.’
By Rod Edwards
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.