UK launches business rates revaluations consultation; BRC lauds step

30 Jun '21

2 min read

Pic: BRC

The UK government yesterday unveiled proposals to make the businesses rates system in England fairer and more streamlined with more frequent property revaluations. Under the plans, revaluations of non-domestic properties would take place every three years instead of the current system of five, ensuring they better reflect changing economic conditions.

The proposals were set out in a government consultation that will form one part of its Fundamental Review of Business Rates, which will be published later this Autumn.

“Proposals set out in this consultation would mean that valuations more quickly reflect how the economy is performing, making the business rates system more accurate and responsive, while balancing the burden for ratepayers,” financial secretary to the treasury Jesse Norman was quoted as saying in a government press release.

Hailing the announcement, the British Retail Consortium (BRC) said as retail emerges from the pandemic, a return to ‘business rates-as-usual’ could derail the industry’s recovery, with unnecessary shop closures and job losses the result.

“It is vital that the Government builds on this first step on the road to reform and stands by its commitment to reduce the overall rates burden on businesses and ensures there are no further delays to the outcome of the fundamental review,” BRC chief executive Helen Dickinson said in a statement.

The Local Government Finance Act 1988 introduced 5-yearly revaluations. The first modern revaluation was implemented in 1990. The revaluations since then have been implemented in 1995, 2000, 2005, 2010, and 2017.

The British government had previously undertaken to move to more frequent revaluations, having introduced legislation to bring forward the next revaluations to 2021, based on 2019 property values.

Due to the pandemic and to help reduce uncertainty for firms, this was delayed, with the next revaluation set to take effect in 2023, based on 2021 values.

The Fundamental Review of Business rates, launched in July 2020, conducted a call for evidence which found more frequent revaluations to be a priority for respondents. The government has therefore set out specific proposals through this consultation on how a sustainable system of revaluations every 3-years might be achieved.

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