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A revaluation of business rates will no longer take place in 2021 in line with the Government’s latest efforts to ‘reduce uncertainty’ for firms affected by the ongoing Covid-19 pandemic says commercial property agent Prop-Search.
Legislation had been introduced to bring the next revaluation forward by one year from 2022 to 2021, but following the recent economic impacts of the coronavirus pandemic, Communities Secretary Rt Hon Robert Jenrick MP has today (06 May) confirmed that this will now be postponed to ensure businesses have more certainty during this difficult time.
Jenrick said: “We have listened to businesses and their concerns about the timing of the 2021 business rates revaluation and have acted to end that uncertainty by postponing the change.”
“Now is the time for us to continue to focus on supporting businesses affected by the pandemic, including through our unprecedented package of almost £10bn in business rates relief.”
Samantha Jones, an Associate Director of Prop-Search, added: “Whilst this announcement will undoubtedly be welcomed by businesses, it also makes economic sense to tie new rateable values to post Covid-19 levels where the impact of the economic circumstances will hopefully be clearer and when businesses have had opportunity to recover.”
The Government said it is continuing work on the fundamental review of business rates, with the ‘key aims’ of reducing the overall burden on businesses, improving the current business rates system, and considering more fundamental changes in the medium-to-long term. The call for evidence for the review will be published in the coming months.
Currently, a revaluation is the review of the rateable values of all business and other non-domestic property in England at a particular point in time. Revaluations are done to maintain fairness in the system by redistributing the total amount payable in business rates, reflecting changes in the property market. A property’s business rates bill is based on a precise estimate of the premises’ rental value.