ACS

From 1st April all businesses will pay rates according to the new rateable values calculated in the 2010 revaluation. The new rateable values calculated according to property rental values on 1st March 2008 have been criticised by many as reflecting property values that have been severely affected by the recession.

Retailers that believe that their rateable value does not reflect the value of their property will have to make their case to a business rates tribunal.

Local shops will experience different changes to their rateable values according to the Department for Communities and Local Government (CLG) the retail sector has seen a 1 per cent increase in rateable value across the high street. However certain sectors petrol forecourt retailers in particular, have seen significant increases in many cases.

Businesses in England will benefit from a transitional rate relief scheme, which will phase in any major increase or decrease over the 5 years until the next revaluation.. Details of the scheme are available from CLG.

James Lowman, ACS Chief Executive, said: “We have called on the Government to support local shops that have been hardest hit by the 2010 revaluation. The five year transitional relief scheme will help but will not be enough to help all. There is much more that can be done.”

“If the Government is serious about supporting local shops to manage business rates costs they can review rate relief policy to encompass more important local services like shops in high streets and neighbourhoods that need support to continue. The Chancellors Budget announcement to cut rates for the smallest businesses was a token gesture that will help very few in our sector.”

“The Government have a responsibility to help those businesses hardest hit by the revaluation and in particular to address the specific harms that the revaluation presents for the forecourt industry.”

Local shops seeking help and advice with dealing with their rate bill can contact ACS.