Business Rate Revaluation Postponed

6 May 2020

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Earlier today the UK Government announced that the planned 2021 revaluation of business rates will no longer take place in 2021 to help reduce uncertainty for firms affected by the impacts of coronavirus.  Whilst removing uncertainty in terms of new assessments and liabilities, it is important to put this into the context of the overall revaluation project.

Revaluations always produce winners and losers.   The postponement will have a negative financial impact on those who would have benefited from reduced rates liabilities, particularly in the traditional retail sector.  If implemented as planned from April 2021 this would have led to substantial reductions in liabilities for the beleaguered retail sector. At the other end of the spectrum, distribution warehousing and businesses in London would have seen substantial rises.  The revaluation was due to come into effect from April 2021 which would coincide with the end of the current scheme of retail, leisure and hospitality relief.  

We have been here before when the revaluation was postponed in 2015, again to the detriment of the retail sector in particular.  The announcement applies only to England. Wales and Scotland have devolved powers. Wales will need to consider whether fairness, particularly for those who will be winners in the revaluation, is to be sacrificed in favour of the certainty of current liabilities, albeit linked to the CPI.

I have worked with Jeremy Symons over the past three years successfully leasing and buying property in support of my business. I continue to be very pleased with his knowledge of the market and expertise. Our relationship over this time has resulted in acquiring 20,000 sq ft at Capital Business Park in Cardiff, leasing 11,000 sq ft at Southpoint, and subsequently leasing an initial 42,000 sq ft at Parc Bedwas, followed by a succession of expansions of a further 11,000 and then 47,000 sq ft, enabling us to centralise all of our operations at Parc Bedwas in a single 100,000 sq ft facility. The acquisitions were completed at the perfect time for tenant purposes and the rent fixed throughout the term at very economical rates. A job well done.

Bob James, Aerfin