A team of chartered surveyors have welcomed the Government’s pledges to cut business rates with a £1.1bn relief package, but have also renewed calls to bring revaluation dates forward to 2015.
Under current Government plans, the next date for revaluing commercial property will be in 2017, rather than 2015 when it would happen under the normal five-year cycle. This means businesses will have their property rates based upon peak values in some markets for an additional two years.
Prime Minister David Cameron announced the proposed package of business rates relief when he pledged to make a host of cuts to red tape during a speech at a Federation of Small Businesses conference.
However, Richard Farr, a Partner at Sanderson Weatherall, in Newcastle, said: “Any pledge to cut red tape and business rates is clearly very good news and we welcome it.
“It’s this time of year, only a few weeks before rates bills start to land on peoples’ desks, that business owners’ minds will be starting to turn to such costs.
“This year, they should be able to look forward to 2015 and an expectation that rates, last set when the market was stronger, will come down. However, the Government have deferred the revaluation until 2017, meaning two more years of costs based upon a high valuation.
“One of the best things Government can do for businesses is to reverse that decision and carry out the revaluations in 2015, as per the normal cycle.
Surely, taxes raised by businesses operating in an environment which allows them to grow are far better for the economy than businesses paying higher rates and struggling to survive.”