Business rate revaluations could take place more frequently under a consultation from the Treasury.
It is seeking views on having revaluations every three years, rather than the current five as part of a wider review of business rates, which the government has said will begin in the autumn.
BRC chief executive Helen Dickinson said: ‘This should be the first step towards making the business rates system fairer and more reflective of current economic conditions. As retail emerges from the pandemic, a return to “business rates-as-usual” could derail the industry’s recovery, with unnecessary shop closures and job losses the result,’ says Helen Dickinson, British Retail Consortium chief executive.
‘It is vital that the government builds on this first step on the road to reform and stands by its commitment to reduce the overall rates burden on businesses and ensures there are no further delays to the outcome of the fundamental review.’
The British Property Federation says the current system is too slow to reflect changing property values.
‘Even before the pandemic, outside of central London, retail rents had fallen by about 30% over the previous decade – and including inflation it’s more like 50% – while rates remain based on outdated rental values from 2015. More frequent revaluations are desperately needed to support high street businesses and a more positive future for our town centres,’ says Melanie Leech, BPF chief executive.
‘Now the government must also consider abolishing the system of downwards transitional relief, where a reduction to a rates bill following a revaluation is restricted. If the government is serious about making business rates fairer, they must accurately reflect true rental values with immediate effect upon revaluation.’
