Responding to the Government’s move to postpone the business rates revaluation, Jon Ely, Head of Business Rates at Knight Frank in the South West, said:
“The Government announced that they have listened to businesses and are postponing next year’s business rates revaluation. This is welcome news given the uncertainty that this would have created at a time when businesses will still be recovering from the economic shock of the pandemic. Further, had the revaluation gone ahead then this would have created real inequalities as the proposed changes in the business rates assessments were based on the strength of the economy in 2019, which bears no relationship to our current position.
“However, it is over five years since the last revaluation and this means that businesses are still faced with being taxed on the strong economy that existed in 2015. This is particularly inequitable for the retail sector, which has changed out of all recognition since then.
“Although the postponement is welcome the Government should really cancel the revaluation and amend the legislation otherwise it will come into force a year later in April 2022 and still be based on the 2019 economy. Instead, a new revaluation date should be established for April next year with the new business rates assessment coming into force the following year. This will enable the Valuation Office to fully take into account the significant changes that have occurred in the use & occupation of the workplace environment following the imposition of restrictions and social distancing.
“Finally, we urge Government to use this breathing space to revisit the recommendations of the Treasury Select Committee’s review of the business rates system published last year. Particularly as the reforms were supported by many of the stake holders in this sector including many of the Professional bodies.”
