What is the 2010 business rates revaluation and how will the amount we pay be affected?
The revaluation will take effect on April 1, 2010, and all commercial and non-domestic properties will get new rates assessments, based on rates achieved in April 1, 2008.
Draft assessments estimate rateable values in England will increase by about 19%, while those in Wales will be hiked by 20%. This should lead to a reduction in the uniform business rate multiplier of about 15%, but retailers are unlikely to be among the beneficiaries.
Paul Giness, consultant for Expense Reduction Analysts, says: “A lot of people were doing quite well at this point [April 2008] and retail had been the strongest sector up until then. The outcome of this change will be mixed. Retailers doing really well from 2003 to 2008 will see a large increase.”
When the change comes into effect, retailers can argue against their new rates bill. To do this, they would have to appeal and would need to ensure all of the documentation of their rates is in order to support their argument. The Government and the Welsh Assembly are expecting a substantial amount of challenges from businesses over the new valuations.
Giness adds: “People could also argue against increases if they are outside new shopping centres like the Birmingham Bullring. Places like Birmingham, Cardiff and Bristol are likely to see the biggest increases. Some retailers may be able to argue on the grounds of being surrounded by lots of empty shops that they shouldn’t have a rate increase.”
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