2018 Spring Statement

The Chancellor has announced in his Spring Statement today that the Rating Revaluation in England will be advanced by one year, from 2022 to April 2021.

We are still awaiting any detail surrounding the change.

One could be cynical and suggest that it is politically expedient and designed to avoid a Revaluation in a General Election year (if the Government last that long!).

Whilst this move will be welcomed by those who think their assessments are currently excessive, we would caution all to beware of what they wish for. Fundamental problems will remain with the Business Rates system whilst;

1. It has an effective tax rate of 45 to 50%.
2. Downwards Transitional Relief is imposed on those who would gain from Revaluation limiting their gains in early years to ridiculously low percentages (as low as 2% for the current Revaluation)
3. The tax is designed to produce the same amount of revenue (inflated) the day after Revaluation as it does the day before. Therefore, there will always be losers as well as gainers.