RICS Responds to Business Rates Revaluation Postponement.

Since March the UK government has introduced a series of measures, including business rates holidays, that are designed to ease the financial burden businesses may be experiencing as a result of the COVID-19 pandemic. However, postponing revaluation until 2022, thereby reversing the decision to bring it forward by a year, may have significant repercussions for UK businesses.

This delay means rates do not accurately reflect properties estimated value on the open market and may cause a large jump in new rates obligations later. In 2012, the government deferred the 2015 revaluation by two years, which contributed to the current unaffordability of rates, especially within urban centres.

The government must use this additional time as an opportunity to introduce and implement a wide-ranging revamp of the system, including changes to the check, challenge, appeal system, introducing three-year revaluations, defining the status of short-term lets, and ensuring any transitional arrangements are clear and concise.

Business rate relief has benefitted some companies, but all businesses not just those on the high street, deserve to operate within a fair taxation system. As the economy recovers from the impact of COVID-19, some sectors cannot be more encumbered by rates than others.

Since the last revaluation delay, RICS has consistently called for measures that offer improved certainty, consistency and stability to the UK property market. Instead of continuing to tweak the rates system or introducing impromptu delays, RICS asks that the government commit to full reform and the consistent timely operation of the system in order to facilitate extended business planning.