The Government has announced that the new Rating List will commence on the 1st April 2023, two years after the intended date of 1st April 2021. The new Rateable Values will be based on rental values as at 1st April 2021 and will reflect the economic impact of Covid-19.
Whilst the postponement of the start of the Rating List was probably the correct choice considering the ongoing circumstances, this does now leave ratepayers with two more years of Business Rates bills and payments based on rental values from 1st April 2015, a totally different market and economy.
It was also announced that the Government are calling for evidence from agents, local authorities, ratepayers and other stakeholders to provide advice, expert opinion and clarity on what changes need to be made and could be made to make the Business Rates system fairer, sleeker and in keeping with changing market dynamics.
Some proposals and considerations include reform of the current Check, Challenge, Appeal system, alternative property related taxes, amendment to the rate of multiplier applied during each financial year and a review of the reliefs currently available. Responses are due by the end of October 2020 with the Government expected to announce any changes during the 2021 Spring Budget.
Whilst major reform and a restructure is required of the current Business Rates system it is important that the Government do genuinely intend to make changes and take on board all of the opinions and evidence provided during this consultation process.
If not and the system is merely tweaked, then the same concerns will be raised and will rumble on during the next Rating List and beyond.
Until then, ratepayers are to brace themselves for two years’ worth of extra payments which could prove particularly challenging for the retail, leisure, and hospitality sectors once the Business Rates holiday expires at the end of the current financial year.
During this time any savings that can be made in outgoings by an individual or business could be critical and Roger Hannah have the expertise and knowledge to assist with any Business Rates matters.
If you own or occupy a commercial property and you feel you may be paying too much on your Business Rates, or unsure whether your rateable value is correct, please contact our specialist Business Rates team for a free initial consultation on the provided details:
Demetri Papaioannou BSc (Hons) MRICS – firstname.lastname@example.org | 07718587354 | 0161 641 8659
Mark Keirl MRICS – email@example.com | 07764158233 | 0161 429 1663