Business Rates after the General Election

The return of a majority Conservative Government signalled no real change to strategy on Business Rates.
However, this is not to say that the system is not in a state of flux. Prior to the election substantial reforms to the appeals system had already been booted into the long grass. Spanning the election period was also a Consultation Document, the previous Coalition policy having been reform on a revenue neutral basis.
“Revenue neutral” is the key phrase. The Rates “tax” take reached £20bn for England and Wales in 2006 and has risen by RPI since then. Every £ given away in new reliefs has to be replaced by extra charges of new taxes under the revenue neutral principles.
What is clear is that the UK Rating system carries a much heavier occupational property tax burden than our European counterparts Our closest neighbours, Ireland, have a Revaluation multiplier of 25.5 cents in the €, roughly half of England’s 49.3p in the £. Unless this problem is tackled, and it is hard to see how it can be, business discontent with the Rating system will continue.
Turning to the Queen’s speech on 27/05/2015, it is stated that a new Enterprise Bill will;

1. Improve the business rates system ahead of the 2017 revaluation, including by modernising the appeals system.
2. Introduction of business rates appeals reform, including modifying the Valuation Tribunal powers to consider ratepayer appeals.
3. Allow for the Valuation Office Agency to share information with local government to improve the system for both local government and ratepayers.

The conclusion we make is that Spring has arrived, the long grass is being mown, and the additional appeals hurdles are going to be brought forward once again.