Business rates review 'to look at more frequent revaluations'

Treasury minister David Gauke has outlined the details of the Coalition’s review of rates, saying: “The review will consider the way in which the business rates system in England is administered by the Valuation Office Agency and local authorities, with a view to strengthening its responsiveness to changes in property values and its simplicity and transparency to business ratepayers.”

Specifically, he said the review will look at the “frequency of revaluations to enable tax assessments to be based on up-to-date property values”.

It will look at “changes to valuation methods, consistent with the principle that business rates are based on rental property values and that the rates retention system rewards local government for growth in values”.

In addition, the review will study the billing and collection process, including how exemptions and deductions are applied.

Fairness​

Gauke stated: “In considering possible changes to the business rates system to be made post-2017, the review will balance the need for any system to deliver fairness, stability and predictability to ratepayers.

“Any changes will need to maintain the aggregate tax yield from which to fund local services, preserve the same level of financial autonomy to authorities and the local incentives to promote growth that were delivered through the implementation of the business rates retention scheme introduced on 1 April 2013.”

Speaking to the Publican’s Morning Advertiser​ last month, community pubs minister Brandon Lewis said the Government has no plans to change the way business rates of pubs are calculated.