Fears that reforms to the business rates appeal procedure would only generate more bureaucratic red tape have been eased by an apparent Government U-turn.
In an open letter, the Department for Communities and Local Government (DCLG) has now confirmed that the Government “has decided to fold the consideration of reform of the business rates appeals process into the broader review of business rates administration”.
Not surprisingly, the announcement has been welcomed across the commercial property industry. “Although the Government has committed to continue with a property tax based on rental values, through its proposed discussion paper, it would appear that is now prepared to examine alternative concepts,” commented Chris Billson (pictured), a director at commercial agent Prop-Search.
The business rate shake-up, as originally unveiled, would also have made it more difficult for occupiers lodging appeals against their business rates. That, added Billson, was completely unnecessary.
“Some fundamental changes are needed to the rating system,” he admits, “but changing the appeal procedure mid-way through the rating list was not the answer.
“The Government’s decision not to proceed with the planned changes to the business rates appeal procedure is positive news for the ratepayer and a victory for common sense.”
As part of its business rate discussion paper, industry experts are also being asked to respond to 23 questions concerning the current and future administration of the revenue collection.
Published to “open up a discussion with a view to reforming the system after the next revaluation in April 2017” the paper covers five elements of the current system: How property is valued, how often properties are valued, how business rates bills are set out, how business rates are collected, and how information is used.
“The Government now needs to listen to the concerns voiced by ratepayers and the professionals working in the industry to ensure that suitable procedures are in place for the 2017 list,” concludes Billson.
