“The review of the business rate system announced in the Autumn Statement by Chancellor George Osborne is long overdue”, states Richard Roberts of Mullucks Wells. Business groups have been calling for a change in the way that business rates are calculated for well over five years.
“The system is completely broken”, says Richard, he cites two reasons why the system should be overhauled.
The current rateable value uses as its baseline the hypothetical rental value of the property as at 2008. The commercial property market was at its highest in 2008 and, as a result, retailers in, say, Bishop’s Stortford where prime retail rents fell by forty percent in the recession are paying far too much in their rates.
Also, should a rate payer decide to appeal , it is currently taking over two years to get the appeal heard although, in the meantime, the rate payer is required to pay business rates at the higher level.