Industry bodies have reacted to the chancellor’s announcement in the Spring Statement that he is ‘helping businesses by bringing the next Business Rate Revaluation forward to 2021… enabling a fairer reflection of rental values’.
Philip Hammond also revealed that these revaluations would be every three years rather five.
UKHospitality has commented on a shorter-than-usual Spring Statement, outlining its intention to engage closely with the government, but calling it a missed opportunity to deliver meaningful tax reform.
“There are some tentative steps here to support the sector, but this is a missed opportunity to provide the decisive and positive action on business rates that hospitality desperately needs, and for which we have been calling,” says UKHospitality CEO Kate Nicholls. “Bringing forward the revaluation will not provide the immediate support that businesses need unless it is accompanied by widescale reform beforehand.”
John Webber, head of business rates at Colliers International, also believes the chancellor has missed a trick in his Spring Budget by failing to properly tackle the issue of business rate reform, leaving many businesses and retailers “out to dry”, particularly as the 2018/19 rate bills for 1 April start to hit home.
“It does nothing to help those businesses, particularly the retailers and restaurant operators who are struggling with the system today,” says Webber. “The change from a seven-year to a five-year, then a four-year and finally a three-year revaluation system only underlines how the government has finally realised how disastrous the seven-year 2017 revaluation was.”