Business rates expert urges Chancellor to lift local economies with revenue injection

Published on: 3rd December 2014

Robert Brown is calling on the chancellor to hand a higher proportion of business rates revenue to struggling regional economies when he makes his Autumn Statement on December 3.

“The current 50 per cent councils are allowed to retain under the business rates retention scheme could be increased to stimulate business growth and regeneration in towns and cities most affected by the recession and austerity measures.

Whilst it has already started to rouse local economies, this scheme has the potential to really spur a revival of many hard-pressed towns and cities if the amount councils can retain were to be increased to around 75% per cent.

This would serve as a real boost, generating more funds and providing greater flexibility in how the money is put back into local areas, as well as further reduce councils’ dependency on central government grant funding.

Under the business rates retention scheme, authorities keep a proportion of the business rates paid locally. It provides a direct financial incentive for councils to work with local businesses to create a favourable local environment for growth since they will benefit from growth in business rates revenues.

The chancellor has spoken in the past about creating a ‘Northern Powerhouse’ to drive growth beyond the south east. This scheme has the potential to be instrumental in making that a reality but it can only be achieved if cities like Manchester, Leeds and Newcastle are handed the resources they need to drive new business and development. The same principle applies to major centres in other regions.”

Despite sensationalist headlines that the system is broken, Sanderson Weatherall believes that the business rates system is sufficiently robust and should be retained, although it is likely to be reformed by whoever sits as the next government. In reality the amount of revenues generated is too large to be replaced in any other way.

The recent headlines about Labour wanting to force private schools to partner with the state sector or face losing some or all of their charitable relief only serves to highlight how radical change might be. It is hoped that there will be a far wider review of all current reliefs and exemptions as recommended by the 2007 Lyons Inquiry to ensure the system continues to serve its purpose after a financially volatile period.”

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Business Rates

Sanderson Weatherall Rating specialists are RICS and IRRV qualified surveyors that can offer a comprehensive range of Rating services to clients including Rating Appeals, Rating Valuations, Rates Management and Rates Audit, together with cutting edge advice on Empty Rates mitigation. Regarded as experts in the field, all our senior staff are members of the Rating Surveyors' Association and are able to offer the very best Rates advice on the accuracy of Rating assessments and resultant Business Rates liabilities. Through our experts' memberships of the Institute of Revenues, Rating and Valuation we are also happy to assist clients who have international local property tax liabilities. We participate in the activities of both of these professional bodies at the highest level and negotiate with government on the introduction of all new non domestic rating proposals. On the 1st April 2017 the new rating lists were published across England and Wales and from that date, businesses looking to challenge their business rates were required to do so through HMRC’s Government Gateway. If you don’t currently have an account then please follow the steps in our guide to setting up a Government Gateway account, registering properties and appointing an agent here.    Contact Us

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Sanderson Weatherall Rating specialists are RICS and IRRV qualified surveyors that can offer a comprehensive range of Rating services to clients including Rating Appeals, Rating Valuations, Rates Management and Rates Audit, together with cutting edge advice on Empty Rates mitigation.

Regarded as experts in the field, all our senior staff are members of the Rating Surveyors' Association and are able to offer the very best Rates advice on the accuracy of Rating assessments and resultant Business Rates liabilities. Through our experts' memberships of the Institute of Revenues, Rating and Valuation we are also happy to assist clients who have international local property tax liabilities. We participate in the activities of both of these professional bodies at the highest level and negotiate with government on the introduction of all new non domestic rating proposals.

On the 1st April 2017 the new rating lists were published across England and Wales and from that date, businesses looking to challenge their business rates were required to do so through HMRC’s Government Gateway.

If you don’t currently have an account then please follow the steps in our guide to setting up a Government Gateway account, registering properties and appointing an agent here. 

 

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Business Rates changes cause controversy

Ratepayers appeals that have already been delayed for several years whilst the hard-pushed Valuation Office Agency struggles to produce the 2017 Rating Revaluation now face the prospect of being deemed invalid or void due to a controversial Rating decision by the UK Supreme Court. 

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Ratepayers appeals that have already been delayed for several years whilst the hard-pushed Valuation Office Agency struggles to produce the 2017 Rating Revaluation now face the prospect of being deemed invalid or void due to a controversial Rating decision by the UK Supreme Court. 

[fulltext] =>

Leading accountancy group Mazars were the subject of a Supreme Court decision last year due to the company owning offices on separate floors of a building. The court ruled that the floors should be treated as separate properties for business rates, a decision that significantly increased their rates bill.

In leaked documents made public by the Mail on Sunday it was revealed that in the future valuation officers should use the Woolway v Mazars case as a model for other companies, a decision that overturns practice that had previously been in place for over 50 years.

Any firms affected by the changes could face their current appeals being dismissed and would therefore be required to make new claims for each area of their premises.

Unless the government act quickly to change the law, ratepayers could stand to lose millions of pounds in anticipated rates rebates that should otherwise be forthcoming due to challenges in rateable value.

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Video Guide to the 2017 Business Rates Revaluation

We have launched a seven video guide to the April 2017 Business Rates Revaluation. With the April 2017 business rates revaluation approaching, we have created a video series to help you understand what will be happening over the coming months, how the revaluation could affect your business and what you can do to plan for it.  

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We have launched a seven video guide to the April 2017 Business Rates Revaluation.

With the April 2017 business rates revaluation approaching, we have created a video series to help you understand what will be happening over the coming months, how the revaluation could affect your business and what you can do to plan for it.

 

[fulltext] =>

 

We have launched a seven video guide to the April 2017 Business Rates Revaluation.

 Our short videos look at the following questions:

 

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