More Frequent Rating Revaluations – the implications for ratepayers
The Government launches a formal consultation document on making Business Rates Revaluations more frequent and introducing changes to ratepayers’ rights and responsibilities.
The proposal to hold Revaluations more frequently is broadly welcome, but it comes at a substantial cost to ratepayers, with significantly increased burdens to provide detailed information to the Valuation Office coupled with reduced rights of appeal and charges to even submit an appeal.
As part of the ongoing “Fundamental Review of Business Rates” the Government has just launched a formal consultation document in relation to making Business Rates Revaluations more frequent. This consultation proposes that Revaluations take place every three years, instead of the current system of five, to ensure they better reflect changing economic conditions. The Financial Secretary to the Treasury, Jesse Norman, commented that “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”.
Fundamental changes are proposed to enable the Valuation Office to cope with the requirement to carry out Revaluations every three years. These proposals include some mandatory duties to be devolved upon the ratepayers, changes to rights to appeal, deadlines, fees and changes in procedure.
If introduced the proposed changes would represent a radical change to the Business Rates system. In recognition of this the Government is proposing to phase in the changes over two Revaluations. The consultation paper was unfortunately vague as to what measures would be introduced for the 2023 Revaluation and which would be held back until the 2026 Revaluation.
The Northern Ireland trial of ratepayer assisted valuations is ongoing the outcome of which will dictate the Treasury approach to ratepayer ‘self-assessment’ of rateable values for future revaluations.
The outcome of the consultation is due to be announced in the autumn.
Please contact Gregory for our more detailed guidance note on the proposed changes or to discuss how your premises may be affected.