Although it failed to deliver the hoped for root-and-branch reform of the business rates system, last week’s Budget did hint at a badly needed update.
Within hours of the Chancellor speaking, the Government published details of the progress on action it is taking to improve the administration of business rates, including the appeals system, and on cracking down on business rates cheats.
The interim findings identified that too many rating appeals are made with little supporting evidence and that, overall, they take too long to resolve.
There is also widespread agreement over the urgent need to introduce a more efficient system so that businesses can be confident that their valuations are correct and that they are paying the correct business rate amount.
“It has been suggested that a revised appeals system should be built around three stages — Check, Challenge and Appeal,” explained Chris Billson (pictured), a director at commercial property specialists Prop-Search. “This will provide a structured and transparent approach in which there are clear expectations on all sides about timescales, requirements and action.
“It would also ensure earlier, more effective engagement between the parties and make sure that only appeals that really need to be heard by the Valuation Tribunal go through to appeal stage.”
Billson detailed the three actions:
It is expected the proposals will progress through enabling legislation during the current session’s Enterprise Bill. The Government has said it will open consultations on the details of implementation shortly, with the new system in place for the next business rates revaluation in 2017.
The Government has also summarised responses to the business rates avoidance consultation that closed at the end of February this year, concluding that further action is urgently needed to curb avoidance.
