The Governments consultation on the current Business Rates system has been a talking point amongst the profession with views expressed by ourselves and others largely supporting true reform rather than mere “tinkering”. Amongst suggestions to address perceived inequality within the system are those intended to address the imbalance being experienced within the retail sector with our High Streets, in particular, being heavily disadvantaged.

Suggestions such as the introduction of some form of “On-line Retail Tax”, the scrapping of Transitional Relief schemes, the reduction in the tax rate from its present 50% to 25%/30%, simplification of Relief schemes, review of exemptions, shorter revaluation cycles and a complete overhaul of the means by which ratepayers can ascertain a fair and transparent assessment of Rateable Value have been made.

Whatever your personal views of this often maligned (described by some as archaic) tax, it has distinct advantages for Government; it’s relatively cheap and easy to collect, the annual “product” of the tax is consistent and reliable, it is difficult to avoid and nigh-on impossible to evade…..and it has been in existence (in various amended forms) for over 400 years so it has stood the test of time. Those of us within the profession that operate within the rating arena are supportive, in principle, of this tax and if the Government would only listen to our opinions we are confident that a property based tax levied to assist funding of local services (which we all rely upon) can be made fit and proper, fair and equitable for the 21^stcentury.

So we think it is here to stay. But it needs major adjustment. Perish the thought of any tax rate exceeding 50%. Perish the thought of continuation of a system that does not reflect changes in our economy, our behaviours and changes in lifestyles, businesses and property values that do not adequately reflect the 21^st Century and perish the thought of the continuation of a system where the reasons (and transparency) behind the calculated tax and the supporting evidence is not readily available to the taxpayer. Fair and equitable? Not at the moment!

Watch this space.

Littlewood & Co. Chartered Valuation Surveyors is an independent property consultancy specialising in property taxation (including business rates) and lease advisory aimed primarily at mitigating property costs for businesses and also providing valuation and advice for strategic and regulatory purposes. Please contact Roger Littlewood if you have any commercial property consultancy requirements you would like to discuss.