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Under the plans, revaluations of non-domestic properties would take place every three years instead of the current system of five to ensure they better reflect changing economic conditions.
The proposals were today (29 June) set out in a government consultation that will form one part of its Fundamental Review of Business Rates, which will be published later this autumn.
Financial secretary to the Treasury, Jesse Norman, said: “As our economy is recovering, we are supporting businesses to build back better. Proposals set out in this consultation would mean that valuations more quickly reflect how the economy is performing, making the business rates system more accurate and responsive, while balancing the burden for ratepayers.”
In response, ACS chief executive James Lowman, said: “We support the move to more frequent revaluations and streamlining the complex business rates appeals system. However, the Valuation Office Agency (VOA) needs to be properly resourced to accurately assess property taxes rather than the burden of providing information falling on businesses who do not have the systems and administrative scale to do this.
“While we welcome the opportunity to engage further with the Treasury on these proposals, we do not believe they represent fundamental reform to the system by themselves. The chancellor should take this opportunity to reimagine the system so it incentivises business investment.”
Helen Dickinson, chief executive of the British Retail Consortium, added: “It is great that government have heeded our call for more frequent revaluations. This should be the first step towards making the business rates system fairer and more reflective of current economic conditions. As retail emerges from the pandemic, a return to ‘business rates-as-usual’ could derail the industry’s recovery, with unnecessary shop closures and job losses the result. It is vital that the government builds on this first step on the road to reform and stands by its commitment to reduce the overall rates burden on businesses and ensures there are no further delays to the outcome of the fundamental review.”
John Webber, head of business rates at Colliers, said: “My worry is the proposed system would increase the bar to appeal against unfair rating assessments, and thus reduce the number of appeals. The VOA will have no need to inspect properties – or maintain the list- that responsibility seems to have passed to every corner shop in the country.
“This reform seems to be less about helping the ratepayer and more about benefitting the government and the VOA.”
