Commercial property experts warn of business rates ‘time bomb’
COMMERCIAL property advisor GVA has called upon government to return what it says is an estimated £1bn in savings to businesses worst affected by the impending postponement of the business rates revaluation.
GVA also says that the Yorkshire commercial property market would be adversely affected by the postponement.
According to firm, the government will accrue savings in the region of £1bn as a result of not having to pay transitional relief payments when the revaluation gets deferred.
Despite protest and lobbying across many fronts, GVA recognises that the government will not change its decision to delay the 2015 revaluation.
GVA therefore urges it to re-employ these significant savings through not having to operate a transitional adjustment scheme from 2015 and look to help businesses that need this assistance the most.
GVA believes there exists three potential ways in which these savings can be returned:
• Ensure an inflationary freeze in business rates for the 2015/16 and 2016/17 rate years
• Ease the rates burden to business in the locations and sectors in England that have suffered so much through the revaluation being deferred for two years.
• Increase empty rates relief to pre April 2008 levels for a two year period.
Susan d’Arcy, associate at GVA in Leeds, said the postponement would have a negative impact on Yorkshire’s commercial property market.
“Markets outside London, such as Yorkshire, are undoubtedly affected by the revaluation deferment. Rental values have fallen more dramatically in the North compared to the South East and London. Therefore, this impending postponement will continue to cause hardship.”
David Jones, senior director at GVA, added: “The revaluation deferment is creating continued hardship for businesses in some of the worst affected areas of the UK. We therefore favour easing the burden for those affected but we recognise this could be difficult to target. As we have highlighted, solutions exist however. We’re calling on government to give some further thought to this matter.”
GVA is due to publish a report on the issue.
