Barclay review into business rates is a step in the right direction for Scotland

Published on: 24th August 2017

In a report that has been keenly anticipated by the business rates sector, the Barclay review group published their Scottish business rates review earlier this week.

The Barclay review group was created to provide recommendations on reforming the current business rates system in Scotland. The group is chaired by Ken Barclay, former banker at the Royal Bank of Scotland and met numerous times over the past few months to compile the report.

Graham Isle, partner in our business rates team commented on the report, “This was a very welcome report for the Scottish business rates system, much like the current system in England it is in dire need of reform.

“The report has highlighted a number of key recommendations to the Scottish Government and I look forward to hearing their response. In particular, it will be interesting to hear what Secretary for Finance, Derek Mackay has to say, as he welcomed the review’s publication and remarked that the government would respond swiftly”.

“I believe that the key recommendations within in the review are the call for more frequent revaluations and a reduction in the period between valuation and implementation of the new valuations, currently this takes two years and means at the start of each rating list many property valuations are already outdated.

“There are also calls for the small business bonus scheme to be evaluated, town centres to be provided with more support by expanding fresh start relief and the large business supplement reduced.”

If you have any questions on the report or would like to find out more information, please contact Graham on 0113 221 6119.

Click here to view the full report.

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Valuation Office Agency to cut jobs despite thousands of outstanding appeals

Over the weekend, it was publicised by the government that they are poised to announce a number of job cuts at the Valuation Office Agency (VOA), the government department that deals with business rates. The plans to downsize will see three-quarters of the VOA’s senior officers axed as the closure of 19 of the 50 regional offices is expected over the next three years. The announced cuts are part of a long-term goal of cutting 1,000 jobs in the VOA, almost a third of all staff, by 2021. Click here to view the original article from the Mail on Sunday.

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Over the weekend, it was publicised by the government that they are poised to announce a number of job cuts at the Valuation Office Agency (VOA), the government department that deals with business rates.

The plans to downsize will see three-quarters of the VOA’s senior officers axed as the closure of 19 of the 50 regional offices is expected over the next three years. The announced cuts are part of a long-term goal of cutting 1,000 jobs in the VOA, almost a third of all staff, by 2021. Click here to view the original article from the Mail on Sunday.

[fulltext] =>

Rob Cohen, partner in our business rates team, commented, “I am disappointed by the government’s decision to announce further cuts at such a critical time for many businesses across the country.

“The VOA are over stretched as it is and have struggled to cope for a number of years in effectively disposing of appeals; there are currently around two hundred thousand appeals outstanding against rating assessments and these job cuts will not help.

“What the VOA really need is more funding and extra resources, not further cuts. It is almost as if they are being set up to fail, lending weight to many sceptics view that the Government will seek to privatise them in due course.”

If you’d like to find out more about business rates and how to appeal your rating bill, please contact Rob Cohen on 0113 221 6120 or email him at rob.cohen@sw.co.uk.

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Rates relief process plagued by delays

The Government has recently intervened in an attempt to speed up business rates relief to thousands of small businesses across the country that have been adversely affected. Despite being promised millions of pounds of support in March’s Budget, many firms who lost small business rates relief as a consequence of the 2017 revaluation are still waiting for their bills to be adjusted and relief to be applied. During the 2017 revaluation the majority of businesses saw little change to their bills but it is estimated that there were nearly 25,000 small companies that lost their entitlement to small business rates relief and faced rates rises of up to 3,000%.

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The Government has recently intervened in an attempt to speed up business rates relief to thousands of small businesses across the country that have been adversely affected.

Despite being promised millions of pounds of support in March’s Budget, many firms who lost small business rates relief as a consequence of the 2017 revaluation are still waiting for their bills to be adjusted and relief to be applied.

During the 2017 revaluation the majority of businesses saw little change to their bills but it is estimated that there were nearly 25,000 small companies that lost their entitlement to small business rates relief and faced rates rises of up to 3,000%.

[fulltext] =>

Following the increase of the threshold for small business rates relief, Chancellor Philip Hammond assured those companies that missed out that their bills wouldn’t go up by more than £50 a month.  These measures have been overcome by delays, with many Local Authorities stating they are unable to amend bills without further guidance being published by the Government.

A Department for Communities and Local Government spokesman said: "We've been clear that Local Authorities should take urgent steps to make sure small businesses benefit from the funding that we announced at the Budget in April.”

"There are Councils that have pressed ahead and issued revised bills. Others have chosen to wait for software updates to deliver this particular scheme and we've taken steps to make sure business get this relief as quickly as possible."

Rob Cohen, partner in our rating team in Leeds, commented, “These delays are causing significant confusion for firms across the country and are unfortunately just another sign of a failing system that is serious need of further reform.”

Unsure how the delays might affect you? Speak to Rob on 0113 221 6120 or email him at rob.cohen@sw.co.uk

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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. 

 

Contact Us

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