Manchester-based, The Beattie Partnership, has done some initial analysis of the draft rating list, released in advance of this year’s Business Rates Review. There are some interesting variations in how business rates are going to change across England.
“London is set to face greater rates challenges compared to the rest of the country,” observes Paul Giness, Partner at The Beattie Partnership, .
Certain locations in the north of England are seeing potential reductions to rateable values, in some cases around 20%. In London there will be significant increases, exceeding 100% in some high growth areas.
The Balance and the Burden
It has been an ongoing concern of economists that the UK economy is unbalanced, with growth concentrated in London, and on services rather than manufacturing.
Paul remarks “This pattern follows into business rates which are based on hypothetical rental values between 2008 and 2015, so those areas experiencing the biggest growth are hardest hit by the revaluation.”
“Retailers and offices in London in particular are going to see big hikes in their rates, whereas many businesses in the parts of the North will see changes in the opposite direction.”
It is however difficult to generalise as there are vast regional variations in the North, with many Leeds offices falling rapidly, whilst many city centre Manchester offices have risen.
Another marked contrast, with potential consequences on a wider scale across England, is the difference in rating valuations between different sectors.
“Where many retail, office and industrial properties are likely to see reductions, other kinds of non-domestic properties will, in some areas, see significant rises,” Paul states. “These includes hotels, caravan parks, restaurants and pubs, as well as schools, colleges and universities and many other specialist property types.”
In such challenging times, the new business rates will be a harsh surprise. If the rates burden is perceived to be too heavy in some sectors, then this is unlikely to be helpful for the wider economy.
Paul concludes. “However, hand in hand with the new rates regime there will be a revised appeals process, which may assist those businesses and sectors who seem to be hardest hit.”
To discover how the new business rates could financially impact your company, please call The Beattie Partnership on 0161 228 2224.
For more of Paul Giness’ views on the above, please read Will the New Business Rates Boost the Economy?