Hammond brings forward business rates revaluation to ease rates pain
Philip Hammond announced today that the government will bring forward the next revaluation of business rates from 2022 to 2021.
The change is part of plans to revalue rates every three years, meaning changes in business rates will be less dramatic at each revaluation.
Business rates specialists have welcomed the change, saying it will make the system more responsive to economic changes.
Hammond also confirmed the government will not be opting for a self-assessment style system for business rates, a change that was being considered ahead of the Autumn Budget.
“A shorter valuation period undoubtedly has benefits in terms of the speed at which value changes are passed on to ratepayers and it should avoid the massive step change we saw in 2017," said Alex Probyn, president of UK business rates at real estate advisor Altus Group.
"But there is an inevitable increase in costs in revaluing more frequently. Government has stated that any changes must be revenue neutral and this appears to mean that those extra costs will be passed to the ratepayer.”
Helen Dickinson, chief executive of the British Retail Consortium, said more frequent revaluations were a "step in the right direction" but that the Valuation Office Agency and ratepayers would need to work together to ensure the system runs smoothly. Ratepayers have previously said the VOA does not receive enough funding to carry out its jobs effectively.