Swindon and Wiltshire to avoid business rates bombshell

Business rates in Swindon and Wiltshire are expected to increase by an average of 3.8 percent in 2017, according to new statistical data.

Across the UK the average rate increase will be around 9.1 percent, with London seeing the greatest increase – 22.8 percent.

The 2017 Rating Valuation figures were published today (Friday) by the Valuation Office Agency. In the South West they suggest a fall of 4.4 percent in rates for retailers, a fall of 0.7 percent for offices, an increase of 5.4 percent for industrial property, and an increase of 12.1 percent for other kinds of commercial property.

Ratings expert Andrew Kilpatrick of Kilpatrick & Co said: “The level of overall increase will surprise many ratepayers as there was a general expectation that 2017 Rateable Values would be lower than the 2010 Rateable Values, which were based on rents as at April 2008, prior to the big Recession.

“Whilst rents have recovered since, many properties still have lower rents now than in 2008.”

Draft Rating Lists are being published by the Valuation Office Agency today which will enable ratepayers or their agents to check the provisional new 2017 Rateable Values for each of their properties.

Appeals cannot be made until after April 2017, when a new 3 stage appeal process is being introduced, which places a considerably greater burden on the ratepayer, according to Andrew, as the onus will be placed on the ratepayer to prove the Valuation Office’s facts and figures are incorrect, prior to any appeal being made. The new system also requires payment of a fee to make an appeal.

The Government has also announced the provisional multiplier for 2017/18 as 48 pence in the pound for most properties, and 46.7 pence in the pound for small properties.

“This is somewhat different from the normal situation on Rating Revaluations as usually the rate poundage falls significantly to offset the increase in Rateable Values resulting from a Revaluation,” said Andrew.

“For example, in 2010 the UBR fell by 15 percent from 48.5 pence to 41.4 pence in the pound. For 2017, the UBR reduction is just 3.4 percent. “The Government also issued a consultation paper over a new transitional scheme to phase in rates increases and decreases.

“It proposes two options, which will largely benefit London ratepayers, who will see their increases phased in at the cost of ratepayers elsewhere throughout the country, who will see the rates reductions they are due – and in some cases desperately need – being phased in over five years, and eroded by inflation.”