Commercial surveying news from the Beattie Partnership

How Will the Draft Rating List Impact Your Business?

There will be changes when the new business rates come into effect on 1 April 2017. Early indicators show big increases in London and reductions in other regions.  But there are also differences in sectors.

Many economists have commented on how the UK’s current economic performance is unbalanced, with London benefitting the most, and with services outperforming manufacturing.

The business rates system is just a reflection of this position, as it is based on hypothetical rental values.  Those areas which have improved will see the biggest rises.

The Draft Rating List

The draft rating list, published last October, gives a clear indication of the kinds of changes businesses can expect to their rateable values. It is important to check the factual details of your entry

You can see the draft rating list here: https://www.tax.service.gov.uk/view-my-valuation/search

The Results of Our Research

Our analysis shows significant increases across sectors in the London area, but decreases in many parts of the rest of the country, with some noticeable exceptions in certain categories.

London retailers and offices are facing a big hike in business rates, with rateable values increasing dramatically, in some cases over 100%.  Many businesses in other areas, such as the North of England, will see a reduction in their rateable values, with 20% - 25% not uncommon.

The other noticeable variation in the new rateable values is by sector. Many retail, office and industrial categories are looking at decreases outside London, but other categories are facing increases in their rates.

The hospitality sector, including caravan parks, hotels, bars, restaurants and pubs will see changes to their rates with some increases.  The other sector to be hit with increases is education, including schools, colleges and universities.

Along with the new revaluation comes a simplified appeals system, and a transitional period for phasing in increases.  This should help alleviate the long-term impact. 

This phasing however applies to reductions in rates too, so those expecting a big drop in liability may be in for a surprise, particularly on larger assessments.

To discover how your rateable value will financially impact your business, please contact The Beattie Partnership.