A follow-up to recent business rates revaluation
Last week we shared the results of the latest rates revaluation. We also shared links for businesses to check their own new rateable value from April 2023. After some feedback from members, we want to clarify the new rateable values.
https://www.gov.uk/government/news/business-rates-revaluation-2023
https://www.gov.uk/find-business-rates
Overall, business rates for the retail sector have declined by 10%. However, when we look at the results in more detail we can see that for smaller businesses (with a rateable value between £12,000 and £51,000) there has been a 7-12% average increase. It varies around the country with some smaller shops seeing a small decline, but generally, the rateable values will be higher than before. Given the challengess of the past 2-3 years, this is not what we expected.
BIRA will be contacting the valuation office to understand why this has happened. We do need to remember that we are comparing to a rateable value dating back to 2015, and there is 7 years of rent inflation built into the calculations. We also know that vacancy rates for the smaller shops are lower that the larger ones, suggesting a stronger demand (although not necessarily for retail premises)
It is really important for retail businesses to check their own rating assessment and check that all details are correct. The valuation office does not visit every shop when calculating rateable values, and you must double-check that the information on your business is correct. At the same time, you can also check on the ratable values of other businesses near you so you are able to compare.
If you do believe that there is an error, and/or you rates are too high, contact the valuation office immediately and explain why you believe the valuation should be lower.
On a more positive note, we can now see the real value of our campaign to increase the retail discount to 75% which should reduce the rates payable next year despite these increases in rateable values. We will however continue to push for greater clarification
Devolved Countires: Business Rates
The recent announcement on the increase in the retail discount (from 50% to 75%) currently only applies to businesses in England. The devolved governments in Scotland, Wales, and Northern Ireland have the power to set their own rules on business rates. BIRA has joined forces with other associations to call on these devolved governments to implement at least the same level of retail discount as in England. The budget in Wales is on the 13th of December, and in Scotland, it is on the 15th of December. We will continue to campaign for positive action to support independent retail
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