Adam Burke, director of rating at the North West office of real estate advisors Colliers International, comments below on the ‘radical’ review of the business rates system announced by the Government yesterday (16 March).
The Govt. announcement re a ‘radical’ review of the existing system. The chorus of calls for change originate from the following issues :
The existing system does not reflect ability to pay as it is linked to historic values (2008). This problem was created by the existing Government with the cancellation of the 2015 rating revaluation. The more worrying fact is that any Government may use this review to postpone further the 2017 revaluation creating even more problems and inequality in the existing system.
The Treasury insist that any change is revenue neutral so unless the Government is going to increase Corporation Tax then a property tax would still appear to be the most sensible route to raise this level of income. The current system can trace its routes to 1601 and if my history is correct it spans the industrial revolution surely that matches any changes experienced in the last 30 years.
Business Rates are one of the few confirmed annual tax takes in the UK, where the Government knows how much it will generate each year, currently c.£26bn.
If less tax is collected from businesses in the North West of England, then more needs to be collected from the south, to make up this amount and vice versa.
All businesses eligible for business rates have just 2 weeks tomorrow left to lodge any appeal before the 31 March deadline, also announced ‘quietly’ at the time of the Autumn Statement.
‘Stop meddling and get on with a revaluation with shorter revaluation periods – ideally annual but no more than 3 yearly.’
