Government reveals surge in business rates appeals

Print

There has been a surge in business rates appeals following the Covid-19 pandemic, new government figures reveal.

The rise in appeals is due to an increasing number of companies claiming a Material Change of Circumstance as a result of the impact of Covid-19 on their businesses. Companies are arguing that rental values have plummeted because of the effect of Covid-19 and as their rateable value should mirror rental values, so need to be adjusted downwards significantly.

The Valuation Office Agency‘s (VOA’s) figures show that in England 144,910 new checks have been registered in the three months to 30 June – nearly the same as the three-year figure announced three months ago.

The new figures effectively double the total number of checks registered up to 303,820, of which 69,480 are unresolved.

John Webber, head of business rates at Colliers International, said: “Covid-19 has led to the biggest Material Change of Circumstance the country has seen in rating history and the system has been around for over 400 years. You could say we are on a wartime footing.

“Businesses are claiming Material Change of Circumstance either as a result of the impact of the initial lockdown and/or on the impact to businesses as they have re-opened. With social distancing and consumer and worker fears about returning to the shops or offices to work, few businesses in the country are operating on pre-Covid levels. There is no doubt that their circumstances have changed materially. Footfall has reduced massively, and many offices, shops and restaurants remain closed or on reduced capacity – these are all valid reasons to reduce the rating assessments.”

Webber added: “If the VOA takes its time and waits for all the evidence to come in, many businesses will simply not be around by the time it decides what to do. We urge for a collaborative approach with the VOA getting together with the ratepayers and their agents as soon as possible to agree sensible and fair reductions across the board to those sectors most impacted. This will be essential if businesses are to plan ahead and hopefully work through this crisis.”