In October’s Chancellor’s Statement, plans were announced for local Governments to be able to retain 100% of local taxes by 2020. This will include the £26 billion of income currently generated from business rates. This follows on from the current scheme which has been in place since 2013, which allowed councils to retain 50% locally, a shift from the previous grant led system which will be phased out.
As part of these plans, Local Authorities will be given powers to set their own UBR (Uniform Business Rate, which alongside the Rateable Value determines your rating liability) in an effort to boost enterprise and economic activity in their catchments. Those Authorities that are able to incentivise and promote business growth will directly benefit from increased rates revenue.
Nicola Murrish, Business Rates Expert at Vickery Holman, comments “There is already a lot of activity surrounding Business Rates, as all rating assessments are being revalued in readiness for the new Rating List in April 2017. With this amendment I am expecting local Authorities to take a greater interest in Rateable Values and the outcome of appeals in the future, so strong cases will need to be put forward to support any appeal where a reduction is being sought.”
The 2017 revaluation process is already under way with the Valuation Office Agency currently issuing and collating the responses from the questionnaires being sent to all rate payers. We are expecting draft RV’s to be issued in October 2016, before the new Rating List goes live on 1st April 2017.