RATING
Adam Burke, Director of Rating at the North West office of real estate advisors Colliers International in Manchester, said: ”There was nothing in the Budget for struggling high streets paying business rates on historically high rateable values. A fiscally neutral business rates review offers no comfort – particularly in regional locations. The average shopkeeper will pay £12,000 more over the next two years due to this Government’s delay in carrying out the 2015 rating revaluation.
“Localism and devolution of business rates receipts to places like Manchester and Cambridge means rates derived from local investment will stay local rather than go to central Government but will make securing rating reductions in those locations even harder – due to the elephant in the room – the billing authority.”
NORTHERN POWERHOUSE
Andrew McFarlane, Director – Head of North West at real estate advisors Colliers International, said: “With the North-South divide growing ever larger the Government is keen to replicate London’s success in England’s northern cities. As such, there is increasing recognition that this means redirecting state economic policy and capital spending to ensure that a future ‘northern powerhouse’ has access to the same private and public-sector resources. What’s interesting from a planning perspective is the lexicon. The Coalition Government disbanded England’s regions following the last election and yet the Chancellor’s speech made clear and fresh references to them. This reflects the growing importance of city regions such as London, Manchester and Liverpool in supporting economic growth.
“George Osborne was careful not only to promote the Northern Powerhouse concept, but to expand the concept to other regions. This has always been the plan with support promised to local combined authorities. The announcement of major infrastructure spending in the South West as well as investment in the Energy Research Accelerator in the Midlands are further examples of regional development support.”
ECONOMY
Walter Boettcher, Chief Economist & Forecaster at real estate advisors Colliers International, said: “Despite a few interesting and useful initiatives (eg. root and branch commercial rating review, further pension reforms, Help to Buy ISA etc), the UK Budget will possibly have less of an impact on UK commercial property than the announcements expected later from the US Fed Open Market Committee which will announce whether they are losing ‘patience’, or not. From an international investor point of view, global interest rate policies remain decisive along with exchange rate movements.
“UK businesses will welcome the stability inherent in a Budget that is long in moderation and short in giveaways. Nonetheless, a few clever reforms with respect to interest taxation will be welcomed by many.”
