Business rates rise may mean extra £25bn for country
THE GOVERNMENT is set to cash in to the tune of £25bn as it reaps the rewards of last year’s controversial business rates hike.
The amount of money raked in from businesses by local authorities in England is set to rise by £845m to £24.8bn for 2018/19. It comes despite a hefty drop in the number of firms questioning their business rates bill, fuelling concerns that a new appeals system makes it harder for companies to lodge challenges.
Appeals under the new Check, Challenge, Appeal system reached 12,840 in the first nine months, compared to 169,300 appeals during the first full- year of the previous regime, according to the Valuation Tribunal Service (VTS).
Altus Group, Britain’s largest ratings advisory firm, is handling 20 per cent of the appeals made so far under the new system.
Robert Hayton, executive vice president of business rates at Altus, said: “We have nearly £5bn of rateable value currently under instruction with a view to bringing appeals where errors exist, and are making these regulations work for our clients.
“The early signs are promising, and incorrect tax assessments are being rectified. The acid test will be how responsive the system is to added volume over time and whether the work to reverse the Staircase Tax will have an adverse knock-on effect.”
The business rates overhaul on April 1 saw 1.9m properties in England revalued and left many businesses facing crippling hikes. Independent forecaster the Office for Budget Responsibility (OBR) has revealed £4.5bn has been set aside to cover tax rebates across England over five years.
The Government has come under heavy fire over the complexity of the new appeals system – with crossbench peer John Lytton saying it involved “the most torturous” registration and had been designed to “prevent appeals”.