Eddisons Shocked at Rates Revaluation Delay
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.
Written by: Richard Roe on Monday 22/10/2012