ACS has welcomed the Government's confirmation that they are looking at how often businesses are valued, as part of a review of the way business rates work.
The Government set out this commitment in their response to the Business Innovation and Skills (BIS) Select Committee Retail Sector Inquiry Report. The BIS Committee report includes a series of recommendations to reform to the way business rates work. ACS has called for action to reduce the burden of business rates and in particular for action to ensure that business valuations are more accurate and more responsive to changing economic circumstances.
Currently revaluations take place every 5 years, although there will be a 7 year gap between the last revaluation in 2010 and the next revaluation that has been delayed to 2017. This means that the valuation on which a business's rates bill is based is often significantly out of date. This is most concerning when it means a business is paying rates on a valuation that is way too high for the value of the property they occupy.
ACS Chief Executive James Lowman said: "Business rates are a significant burden on retailers and addressing this has to be a priority for this Government and the next. A crucial first step in this is ensuring that the rates a business pays are based on accurate valuation of the property they occupy. In the past 5 years we have seen how far out of step valuations can get and how this can prevent investment in our high streets and neighbourhood parades.
"We strongly support action to increase the frequency of valuations, this has to be accompanied by action to improve the quality of valuations and reform of the appeal system. We urge MPs and Ministers to take forward this review as quickly and efficiently as possible."
The Government also reiterated its commitment to the 'Future for Retail' Industrial Strategy. ACS supports this strategy and continues to work to ensure it has impact across Government and the wider sector.
