The Valuation Office agency in England and Wales and the Scottish Assessors north of the Border are currently working on a general revaluation of non-domestic property for business rates. The new rateable values will come into force from April 2017.  The draft values in England and Wales should be available by the beginning of October 2016 with preliminary indications of the multiplier and any provisions to phase in increases and decreases in liability following shortly after to give businesses a few months to adjust to the new charges.

Whilst this may seem a long way off, businesses should already be starting to consider the implications and making plans to address the challenges it will present.

Commentators are divided as to whether the revaluation will lead to a slight increase or decrease in the multiplier or "rate in the pound" but, as in any revaluation, there will be winners and losers. Most retailers outside London and the south east are expected to see their rates bills fall as a result of the revaluation and the biggest falls in the West Midlands predicted for Tamworth Bromsgrove and Kidderminster. Traditional manufacturing is also expected to see smaller bills although distribution, but central Birmingham offices and utilities may not be so lucky.  The biggest losers from the revaluation are expected to be in central London and the South East, particularly offices.

Meanwhile, the government is currently undertaking a full review of the rating appeals process known as the three stage "check, challenge and appeal" system. This closed on 4th January.

In the attached video link, members of the Deloitte Real Estate Business Rates team discuss the lead up to the 2017 Rating Revaluation and the importance of engaging now to mitigate the rates burden.

The team considers the following salient points:

  • Rating Revaluation – what is it?;
  • What will the impact be – winners & losers;
  • Rates liability – revaluation decrease does not necessarily mean a reduction in liability;
  • Business rates review – due to report Budget 2016, 'Check, Challenge, Appeal' the likely outcome for 2017;
  • Draft 2017 Rating List – published 30 September 2016;
  • 2010 rating list window of opportunity – up to 31 March 2016;
  • Digital by default – online government services;
  • Professional advice – cutting through the complexities to mitigate the rates burden.

Watch Deloitte Real Estate Business Rates Team's video.  

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.