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Chancellor’s early rate revaluation ‘may not bring immediate benefits’

Business ratepayers may not feel the benefit of the chancellor’s early revaluation immediately according to a North West expert.

Philip Hammond announced in his Spring Statement yesterday (13 March) that the next business rates revaluation will take place on 1 April 2021 – a year earlier than the previously announced date of 1 April 2022.

During his speech, in which he gave an optimistic view on the health of Britain’s economy, he pledged to “go on supporting British businesses” and added: “We are reducing business rates by over £10 billion.

“And we committed at Autumn Budget 2017 to move to triennial revaluations from 2022.

“Today I am pleased to announce that we will bring forward the next business rates revaluation to 2021 and make the triennial reviews from that date.”

Responding to the news Gareth Buckley, principal at Manchester property agency Avison Young, says: “Whilst it seems like good news for ratepayers it looks like the government will continue to have a transitional phasing scheme so any real benefit from decreases in rental values will not be passed on immediately to ratepayers.  With the continuing woes on the high street this cannot be good news for the struggling retail and food leisure operators.

“Against the current round of staff cutbacks and re-organisation within the Valuation Office, paired with the catastrophe that is Check, Challenge, Appeal, it is a small consolation that the chancellor committed to sufficient funding at the next spending review.

“With hundreds of thousands of appeals for the 2010 rating list still to be resolved and the floodgate that is waiting to open for 2017 disputes there needs to be some serious resource invested both in staff and IT.

“With the rental valuation date for the 2021 revaluation being confirmed as 1 April 2019 – only a few days after formal Brexit – it will be a very interesting property market to analyse.”