High Street firms hit by delay over rates claims

THOUSANDS of business will spend up to four years locked in a battle to claw back millions of pounds in ‘unfair’ business rates, a report has claimed.

Companies can appeal to the Valuation Office Agency (VOA), the arm of HM Revenue and Customs that sets rates, if they believe that their bill is too high.

But a crippling backlog means there are now over 25,000 appeals against rates outstanding.

At the current rate, some businesses will wait four more years to have their 2017 bills corrected, according to analysis by global commercial real estate services organisation Colliers International.

Since the ‘check, challenge, appeal’ system was introduced in April 2017, 352,000 business properties have started the process.

John Webber, head of business rates at Colliers, said: ‘This is a disaster and for many businesses this is totally unacceptable. The slow rate at which they are being processed is alarming.’

The fiasco over the rates bill has fuelled calls for business rates reform. Prime Minister Boris Johnson has implemented temporary relief and promised a review.

The High Street appears to have received some respite since the General Election as shops recorded their best January since 2014. Sales in-store increased 5.7pc last month, compared to January 2019, according to data released by business advisory firm BDO. In-store homeware sales led the charge, up 8.9pc from last year, and the best January result for the segment since 2011.

The beleaguered fashion sector also improved, recording its best in-store January result since 2014 with 5.8pc growth, which ends two months of decline.

But BDO warned this rebound is measured against one of the worst years on record and that any recovery is ‘at an early and unpredictable stage’.