Business rates revaluation postponed to 2023
And we’re off – again!
Today the Treasury has published the Call for Evidence for the fundamental review of business rates to kickstart the latest feedback process.
This news comes out on the same day that the Government that has announced that the next revaluation of business rates in England will take place on April 2023, a postponement of two years. Its rationale is that the next revaluation will better reflect the impact of COVID-19, as this revaluation will be based on property values as of 1 April 2021. Until then, rating bills will be based on April 2015 property values which feels like a lifetime ago when you take into account everything that has happened – Covid-19, Brexit and a General Election to name but a few key blips.
Back to the review, the CfE has reaffirmed the Government’s objectives for the review and is now inviting views on ideas for reform on all elements of the business rates system and possible tax alternatives.
The Government says it is aware that many businesses and stakeholders may need extra time to put together a full response to all of the issues and so is seeking responses in two phases.
Phase One is asking for views from on the multiplier and reliefs sections, as well as any other areas of pressing concern. These need to be submitted by 18th September followed by responses on all other sections by 31st October.
The full written Ministerial Statement can be found here for those who are interested in the broader Finance Bill.
London Mayor Sadiq Khan is the latest big name to call on the government to extend the business rates holiday beyond April 2021.
The retail and hospitality sectors are mobilising the troops with dire warnings that thousands of business are at risk if the rates holiday isn’t extended beyond April 2021.
The pandemic has led to more than 50,000 extra appeals being lodged against business rates by Scottish firms alone.