The government announcement this week completely reverses their earlier decision to revalue more regularly, to produce more fairness in the Business Rates system, with businesses paying rates on more current values – valuing initially 4 yearly and then 3 yearly, rather than 5 yearly (as per established norm since 1990), taking the new revaluation cycle to 6 years, following on from the last 7 year cycle, with the 2010 Rating List extended by 2 years.
The government clearly do not know what to do with the Business Rates problem and feel the best idea is to ‘kick the can further down the road’, knowing a Revaluation will just cause more noise around rates, with some big losers amongst the winners, as always. The decision benefits quite a large number of businesses who have under-valued properties, with the Valuation Office leaving sways of valuations the same, or even reducing, under the 2017 Rating List where they were unsure of the answers. However, it is clearly very unhelpful for businesses who have seen rents plummet over recent years and are stuck with high historic Rating Assessments.
Get in touch for Business Rates Advice.