Pubco Star calls for action over business rates appeals

The pub company has called for “better resourcing” of the Valuation Office Agency (VOA) after an analysis of 500 of its appeals revealed the average time taken to settle an appeal is two years and two months, and the maximum is four years.

The Government has proposed a number of changes to the process​, including the requirement for ratepayers to provide detailed explanation of why they think the rateable value is wrong and to separate the “proposal” stage in the VOA from the “appeal” stage in the valuation tribunal, so ratepayers can decide whether their dispute needs to progress to an appeal.

The Government is reviewing the responses to the consultation and intends to implement the changes from 1 October 2014.

But Star has called for further simplification, adding that 16% of appeal delays were compounded by postponement and rescheduling by the VOA.

The research also revealed that nearly half of appeals made by chartered surveyors Gerald Eve, on behalf of the pub company, are successful, resulting in average savings of £2,500 per year for lessees. Moreover, one sixth of appeals cut lessees’ bills by more than £10,000 a year.

'Unacceptable'​

Star trading director Chris Jowsey said: “In a difficult economic climate when licensees are doing all they can to reduce their overheads, it is unacceptable that so much of their money is tied up with their local councils and for rebates to take so long.”

Charles Wilford of Gerald Eve added: “There is an increasing trend for the VOA to play their cards close to their chest, often refusing to show their hand or provide information they are relying upon until they are on the steps of the tribunal.

“Furthermore, where licensees have suffered declining trade for genuine valuation reasons, all too often the response from the VOA is to simply blame recession, relying too heavily on desk-based computer generated answers rather than getting out to see for themselves.”

A spokesperson from the VOA said: “More than 90% of appeals we receive are made by agents acting on the ratepayer’s behalf, and unfortunately not all agents set out clear reasons or provide evidence about why they think an assessment is wrong.”