Business rates system is 'unsustainable' and 'unhelpful', says rates firm

The comments come in a letter to pubs minister Brandon Lewis over the Government’s decision to push back business-rates revaluations by two years.

CVS chief executive Mark Rigby said the announcement “creates more problems than it solves”.

He wrote: “Because 2008 values are so dramatically mis-aligned to current property rents, businesses are being asked to pay more than is fair in very many cases.

“The announcement compounds a dysfunctional business rates system and it is no surprise that the industry has reacted with shock and alarm.”

Last week, the Publican’s Morning Advertiser revealed that nearly 6,000 pubs are waiting for their 2010 business-rates appeals to be heard, with an estimated refund expected of £32,000 per successful case.

Rigby made three recommendations on how to improve the system:

■ Empower the specialists working on both sides of the table (those representing the Government on the rates valuation and appeals process, and the professionals representing businesses with appeals).

■ Unburden the process and free up experienced property professionals to negotiate and reach agreements.

■ Unblock the system so appeals can be settled quickly and overpayments returned promptly.

Rigby said: “Getting an improved system must be a top priority, not something that can be kicked down the track until 2017 under the guise of ‘providing stability and certainty’ on payments. We need the Government to act, to address the weaknesses in today’s rates system and to reform it for the benefit of businesses across the country. Failure to address the problems now will mean 2017 coming too late for the many businesses that will have gone under by then.

“We are adding our voice to this crucial debate and challenging the Government to demonstrate that it is genuinely ‘pro-business’ by listening and responding. Business needs a better service. It is for the Government to act.”

Business Secretary Vince Cable’s parliamentary private secretary has also written to Lewis seeking “clarification on the fears, objections and deeply-held worries of publicans”.