Media claims of 25% business rate rebate for offices ‘premature’

19 January 2021
  • Business Rates Cooke & Arkwright

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Cooke & Arkwright’s Business Rates team is urging caution following recent media reports that UK businesses could save a combined £481m in business rates following an interim agreement. The media coverage stated that the interim agreement was for a quarter off the business rate bills for offices.

This followed a huge volume of appeals from businesses whose offices were billed as normal during 2020, despite most offices being unoccupied as employees worked from home. By contrast, a year-long holiday from business rates was granted to the retail, leisure and hospitality sector.

However, Director Jane Shankland of Cooke & Arkwright said, “The claim made of a 25% rebate is premature and I think ratepayers should be cautious. 

“While there have been coordinated discussions ongoing with the Valuation Office Agency (VOA) to try and agree broad parameters for various classes of properties affected by Covid, it is very much early days and no agreement has yet been reached.

“The negotiations with the VOA have now stalled due to a premature announcement to the press regarding the quantum of any allowances.

“Despite this, some rating advisors are already using the promise of a 25% reduction as a hook to try and secure instructions.

“Hopefully the coordinated discussions will get back on track, but any promise of 25% should be treated with caution for now.

“Our position is that a reasoned, properly prosecuted rating appeal could and should result in reductions to reflect the impact of Covid for some classes of property. We urge businesses to seek specialist professional advice on the matter.”

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