Business Rates Technical Consultation

1. Business Rates Review: technical consultation

Summary of proposals

More frequent valuation
  • The government has concluded following a consultation in the summer that a more sustainable 3 yearly revaluation cycle would better reflect changes in the property market and respond to economic cycles.
  • This can provide ratepayers with greater transparency on valuations, greater valuation accuracy and a better appeals process.
  • Business will need to provide info relevant to valuation i.e. changes in lease agreements, new improvements to their property.
  • Though this review will not shorten the  Antecedent Valuation Date (AVD) i.e. the gap between the date at which a valuation is taken and the date at which the rates liability based on that valuation comes into effect which will mean liabilities better reflect current economic trends, this will remain an aspiration and be the next step in reform.
Improvement Relief:
  • Proposal to bring forward new relief to support businesses that want to invest in their premises to make them be more efficient and work better.
  • There will be a qualifying list of improvements that meet criteria of enhancing employee wellbeing, meet rising demand, improve productivity and support a transition to net zero.
  • Support for investment in green plants and machinery.
  • Government will introduce an exemption for plant and machinery used in onsite renewable energy generation and storage and 100% relief for eligible low- carbon heat networks.

Other administrative changes
  • Government to bring forward other changes including;
  • for the Secretary of State to direct the VOA to add properties to the central rating list directly rather than via statutory instrument in the House of Commons (properties too regional or large in nature to be added to local lists such as utilities networks).
  • extending powers for local authorities to apply discretionary relief retrospectively and vary schemes with notice set locally.

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