Sadly the Government have decided to postpone the planned Revaluation scheduled to be effective from 1 April 2022 until 1 April 2023. Their reasoning behind this postponement is “so that it better reflects the impact of Covid-19, the next Revaluation will be based on property rental values as at 1 April 2021”. This date is the “Antecedent Valuation Date” (AVD) which is usually two years prior to the effective date of the Revaluation to which the AVD applies.

This means that, instead of the Government’s plans to move to shorter revaluation periods of 3 years, the gap between the 2017 Revaluation and the next one will be 6 years! At first glance this may seem like a good move and in the interests of ratepayers but don’t be fooled! We fear that it is likely that the country will still be mired in the affects of Covid-19 and have serious doubts as to whether the Valuation Office will have the required evidence to arrive at fair and equitable valuations, given that rental values will still be seriously impacted by the pandemic.

In addition, the current 2017 Rating List has not yet fully experienced conclusive challenges to values and many challenges are yet to be made. Material Changes of Circumstances appeals arising from the pandemic are also awaiting resolution and these could also impact upon the postponed Revaluation.

The likelihood is that, in order for the Government to maintain fiscal neutrality within the system, due to falling values in many sectors, an adjustment to the annual rate multiplier will be required……which may take it well beyond the current 50% level. The alternative would be to introduce yet another Transitional Relief scheme which is neither fair nor equitable!

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.