Last Week the Government announced that they are postponing the revaluation of Business Rates until 2017.
Contary to the myth propigated by local media, business rates are set not by the council but by the Valuation Office. This change could see businesses in Wrexham being hit longer and harder for their commercial rates.
Business rates are one of the Governments biggest income sources and contribute around 5% of Britain’s tax take. A properties business rates are calculated using the rental value of a property and the annual rate of inflation.
Business rates are reassessed every 5 years in an attempt to keep them in line with current rental values of properties and the next revaluation was due next March. The current rates set are already based on values from 2008 when rental prices were much higher than they are now – roughly the top end of the market.
For many ratepayers this will mean that their rates are going to continue to be based on the 2008 prices until 2017.
A business rates company BWB told us “Despite the fact that rents have fallen by as much as 30% since the last revaluation rate payers are still paying based on the higher value”
“Places like Wrexham will see more small businesses affected as they are going to bear the brunt of it, they are in properties that are worth less now than their valuation as not only has trade has moved away to shopping centres, but property values have dropped.”
The 2015 revaluation would have seen many business rates payers see a reduction in their business rates meaning many small business would have been awaiting the next revaluation in order to see some relief from the high rates bills they are currently having to pay.