REVO 2016: Retailers in 11 out of 14 UK cities will see their average rateable values decrease in the 2017 business rates review.
Aberdeen, Leeds, Cardiff and Bristol will all see their average values decrease by more than 30%. CBRE’s analysis shows the percentage rateable value movement from 2010 to 2017, ahead of the next rates revaluation and the publication of the proposed values by the Valuation Office Agency on 30 September.
While positive news as a whole, as well as an incentive to buy in these cities with reduced occupancy costs, the decrease will not be felt across the board and some retailers are still likely to see an uplift come 1 April 2017.
In central London, rateable values could rise by as much as 170%. The analysis comes shortly after the government established a consultation for the regulations that will underpin the business rates appeals process.
The regulations state that the valuation tribunal will only order an alteration to the rateable value of a business if it considers it to be “outside the bounds of reasonable professional judgement”. Retailers will also have to pay to pursue an appeal for each individual site, increasing the potential overall costs involved.
Tim Attridge, senior director, rating, CBRE, said: “With the cumulative rateable value set to fall across the UK, the government will be seeking to maintain the level of tax generated by the business rates system. Therefore the multiplier will be higher than we’ve ever seen immediately after a revaluation. Retailers should be aware of what the potential changes might be, and the impact on their business.”
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