“Underwhelming” business rates review is slammed ...

A consultation exercise on government proposals for its business rates review is totally “underwhelming” according to property agency Colliers.

The consultation ends on February 22 - under a week from now - and the agency says it’s concerned about four major issues.

More frequent revaluations - the proposal for a three yearly revaluation cycle will lead to reduced appeal rights and increased red tape for businesses, says Colliers.

John Webber, Head of Business Rates at Colliers, says: “To put into context, currently out of approximately 1.9m ratepayers, 700,000 pay no business rates. These changes will therefore result in these 700,000 ratepayers being required to send one or more pieces of information annually to the Valuation Office Agency, involving them in a bureaucratic exercise where their information is unlikely to be used. This will have no effect on the amount of rates collected. At a time when business is supposedly being relieved of red tape in a post Brexit world, the government seems to be proposing the opposite!”

Improvement relief - Colliers backs the principle of introducing improvement relief targeted at qualifying works which ratepayers carry out to their premises. But it does not appear as generous as the scheme already in place in Scotland and Webber says: “Depending on how it is implemented, may have little consequence to ratepayers in their decision-making process.”

Support for investment in green plant and machinery - Colliers wants the government to organiser a wholesale review of the plant and machinery regulations to make sure developers, landlords and occupiers carry out investment in all new technology that makes buildings more sustainable, but without carrying an additional tax burden for a period of at least 10 years.

Other administrative changes - The government has also proposed several relatively minor administrative changes which on the face of it seem of little consequence. How the central list is administered may be of little consequence unless the government decides to make it far easier for the VOA to change the valuation approach to certain properties and create a back doorway of raising more revenue.

The government has also proposed simplifying the system which administers discretionary relief by local authorities. This relief can be a vital tool for local authorities to help specific businesses who may be experiencing hardship and underusing their premises.

However in practice Colliers believes the continued underfunding of local authorities across the country means greater control by local authorities is meaningless.

Webber concludes: “Overall, the government’s failure to deliver the much-needed fundamental business rates reform last autumn and replacing it with this consultation is desperately disappointing. We urge all interested parties to let the government know this and to respond before the consultation ends next week or they could find themselves snarled up with extra expense and administration.”