Peter Foley is our resident guru here at CPA, and has been passionately following the shifting world of business rates for many years. With a keen political insight, Peter’s writing reveals how policy change is key to understanding your business rates further, and how this could translate into substantial savings. In his weekly column, Peter also outlines a desired path forward, with changes we’d like to see implemented for a fairer system on the nation's business rates.
With little time remaining before the 2023 rates revaluation, it might seem tempting just to wait and see what happens...
However, we're detecting a definite undercurrent in government thinking, towards preserving the £25bn rates nest egg at all costs. Regardless of the movement of rents since the last audit.
Also, any new retail tax on online transactions which could compensate for rates relief bricks and mortar properties still doesn't look set to occur any time soon. In light of recent government borrowing however, we can imagine how new tax implementations may be high on the agenda, with no reform to the business rates system.
Where does this leave your business?
Well if your business is warehousing and you were to ask Lord Simon Wolfson, boss NEXT, you should be paying up to 50% more in business rates as many warehousing industries have prospered with the rise of online trading.
We sympathise with high street retailers, but it's unfair to penalise warehousing in general, a singular success story during the grim years of the pandemic.
However, there is a widely-predicted hike on logistics and distribution, expected in the new Rating List.
In line with rents, business rates can be expected to rise overall , with significant spikes in the South East, the South West, and London.
With square footage at sizable levels however, potential savings involved are equally high in the form of rebates dating back to 2017, not to mention a more realistic rates base for the future.
These benefits disappear come April, 2023, when formal appeals will doubtless produce long queues, not to mention the possibility that any savings will be in the grudging form of tapered reliefs.
For a no obligation consultation, contact CPA .
No two buildings are ever identical, and it is in their differences that a skilled eye can spot solid grounds for lower rateable assessments.
Rather than waiting for the VOA to publish its 2023 Rating List, we recommend that whatever the nature of your business, regardless of location (although London seems to be firmly in the VOA's crosshairs!) you should request a complete audit of your premises.
We have recently been achieving major savings on rates bills across multiple industries, why? A forensically-detailed professional survey by RICS-accredited professionals, promptly submitted to the Valuation Office Agency.
What's the result? Substantial savings, amounting on occasion to the high six figures, and a sounder rates basis for future financial calculations.
Take advantage now of our no win no fee terms, rather than allowing the countdown to increased bills to continue unchallenged.