Governments Hammer Blow to Business with the 2017 Rates Revaluation:
The Government has been warned it faces a huge backlash from businesses around the country, with significant hikes in the rates they pay, or with much smaller falls than may have been anticipated.
Following the release of the draft rating list last week, properties in London’s West End are set to see hikes of 75% to 100% in their rateable values, with some shops seeing as much as a 250% rise.
As expected, rateable values are set to fall for businesses outside of London and in particular high street shops, with some retail centers seeing as much as a 40% drop. This would be welcome if these falls in the rateable value were to be passed directly on in the rates bills, but the Governments proposed transitional phasing scheme means some business owners may never actually see the full reduction.
Under this Governments new scheme, any increase or decrease in rates bills will be phased in over a period of up to five years.
Larger business’s with bills of more than £100,000 could be hit with an increase of as much as 45% in the first year of the system, rather than the previous initial 12.5% cap. Furthermore, businesses expecting falls in their rates will be disappointed with reductions in bills being capped at 4.1% in the first year.
This hammer blow that's directed at already hard hit business's, comes on top of a two-year delay in the rates review, which has left many struggling firms having to cope with higher than expected bills.
At Roger Hannah & Co we can provide a comprehensive audit of your properties business rates liabilities and potential 2017 value. Contact us direct for a free consultation.