The government announced yesterday that it intends to delay the 2015 reassessment of Rateable Values in England and Wales by two years; there has been widespread surprise and disappointment at the move.
Stephen Salloway said on the matter 'It is absurd that the Government intends to delay the reassessment - this means that ratepayers who were hoping for a the likely correction that was due to occur.'
Business Rates are calculated from Rateable Values which broadly follow market rents. Rateable Values are re-assessed every five years with current values being based upon pre-recession rents in 2008. The next assessment would have been based upon rental values prevailing in 2013, which are likely to be lower in many cases.
'The regular reassessment of Rateable Values is designed to ensure that there is a fair and equitable re-balancing of the tax take to match the shift in business property values. By delaying the reassessment, the Government will effectively be penalising those businesses whose properties have reduced in value the most.'
'The Government admitted in its statement yesterday morning that business rates are the third largest outgoing of a business, so to delay the revaluation in this manner is preposterous. Retail businesses are likely to be among those worst affected by the delay so the decision flies in the face of efforts to reduce vacancy rates on the high streets.'
Salloway offer a full business rates advisory service. Please don't hesitate to contact our Derby office on 01332 298000.