GVA has called upon government to return what it says is an estimated £1 billion in savings, to businesses worst affected by the impending postponement of the business rates revaluation.
According to GVA, the UK’s largest independent commercial property advisor, the government will accrue savings in the region of £1 billion as a result of not having to pay transitional relief payments when the revaluation gets deferred.
Despite protest and lobbying across many fronts, GVA recognises that the government will not change its decision to delay the 2015 revaluation. GVA therefore urges it to re-employ these significant savings through not having to operate a transitional adjustment scheme from 2015 and look to help businesses that need this assistance the most.
GVA believes there exists three potential ways in which these savings can be returned:
• Ensure an inflationary freeze in business rates for the 2015/16 and 2016/17 rate years
• Ease the rates burden to business in the locations and sectors in England that have suffered so much through the revaluation being deferred for two years.
• Increase empty rates relief to pre April 2008 levels for a two year period.
Graham Knight, Director, GVA, said: “The revaluation deferment is creating continued hardship for businesses in some of the worst affected areas of the UK.
“Here in the Midlands, for instance, we would have seen a fall of at least 20 per cent in rateable values for industrial properties, based on deals done in 2013. This is not limited to just industrial properties, however, and it is important to point out that all sectors in the region are suffering.
“We therefore favour easing the burden for those affected but we recognise this could be difficult to target. As we have highlighted, solutions exist however. We’re calling on Government to give some further thought to this matter.”