In a surprise announcement today, the Parliamentary Under Secretary for State for Communities and Local Government (Brandon Lewis) announced the Government’s intention to postpone the next Business Rates revaluation in England until 2017. Primary legislation will be brought forward through the Growth and Infrastructure Bill, which will shortly be laid before Parliament.
Howard Elliott, head of Rating at bdt, said “this will be extremely bad news for businesses”, he went on to explain that “this will have the effect of preserving a historically high tax base into the future. Business rates are currently based on valuations at April 2008, which represented something of a high water mark for values across many business sectors. As part of the normal revaluation process the next valuation date was to have been April 2013, with values coming into effect in 2015.
This would have provided a great fillip to local businesses with the much softer current commercial property market conditions being reflected in lower rateable values, and thus lower rate bills. This opportunity will now be denied as Government is preserving the historically high tax base and will simply increase the multiplier by the rate of inflation year on year”.
The Bill is expected to have its second reading debate on 30th October 2012.
For further information on how this will affect your rates bill, please contact Howard Elliott.
18th October 2012