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.
In a recent move, Jeremy Hunt, the Secretary of State for Health and Social Care, has revised the business rates on football stadiums to reflect current market values. This decision has sent shockwaves throughout the footballing world, as clubs at all levels are set to face substantial increases in their bills.
Some of the most notable examples of these hikes include Manchester United's bill increasing from £2.87 million to £3.74 million, and Tottenham Hotspur's hike of £1 million, to £4.78 million. This situation is not limited to the Premier League, as football clubs across all divisions and leagues are set to face increases.
The average rateable value for top-flight football stadiums has surged by nearly 50 per cent, which means that Premier League clubs are set to face a "massive" hike in their business rates bill next year. Commercial properties have seen an average increase of 7.3 per cent in their rateable values, which are used to calculate the levy.
The recent revaluation will add a staggering £7 million to the business rates bill paid by the 20 Premier League clubs, taking it from £26 million to £33 million. This has understandably caused concern and dismay among many football club owners and operators, who are now seeking expert guidance on how to deal with this issue.
One organization that can provide such assistance is Commercial Property Advisors (CPA). They advise that in many cases, these rate increases can and should be challenged. To successfully challenge a business rate, professional surveying and formal reporting to the Valuation Office is required. It is best to entrust this task to RICS-regulated specialist consultants such as CPA. Their competitive fees, agreed with the client in advance, are only payable in the event of successful valuations having been achieved.
If you are a football club owner or operator looking to reduce your business rates bill, CPA can offer you the advice and help you need. Don't hesitate to get in touch with them for further information.