Council loses its fight to reduce business rates further on new headquarters

YORK CITY Council has lost a fight to reduce its business rates bill further after a tribunal ruled that it should not receive additional allowances for its recently developed headquarters.

The council created a new 118,000 sq ft headquarters, made up of both new and refurbished space, in 2013.

The building was assessed at a rateable value of £1.8m from March 25, 2013, and £1.79m from April 12, 2013, after part of the space became separately assessed following its transfer to the Citizens Advice Bureau.

When the council appealed, the Valuation Tribunal for England (VTE) reduced the bill to £1.35m from March 25 and £1.34m from April 12, 2013 after deciding that there should be different values for the old and new parts of the building.

The council appealed again, arguing that the VTE should also make additional allowances for the size of the property, the lack of car parking, and the additional repairing costs that were likely to apply because part of the building was grade II-listed.

It contended that the assessments should be significantly reduced to £1.07m and £1.06m respectively.

The Valuation Office Agency issued a cross appeal, challenging the first decision and the council’s second appeal.

The final decision last week ruled that the rateable value should be raised to £1.55m from March 25, 2013, and £1.53m from April 12, 2013.

Coun David Carr, leader of the council and executive member for finance, said: “We’re obviously disappointed with the final ruling, but pleased that challenging the original valuation has saved half a million pounds.”

Mick Rowbottom, rating director at Leeds-based Dunlop Heywood, added: “The judgements are timely reminders that every valuation needs to have a detailed inspection and that end allowances need to be supported by robust evidence that is relevant to the locality.”