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Automotive Sector businesses are bracing themselves for the arrival of this year’s rates bills, as they closely follow the ‘quarter day’ for the payment of their rent. The pain of the massive 5.7% rates rise in 2012 has been made worse by this year’s additional 2.6% top up. There seems no relief for businesses and forecasts show it’s not likely to improve.
Despite the government expecting the economy to grow over the next three years, the Bank of England’s latest quarterly inflation report said it would most likely be above its 2% target until early 2016. As inflation dictates the RPI, which impacts business rates, it’s fair to say businesses can expect a rise in their rates bills year-on-year for the foreseeable future according to Don Baker, chairman of rating at CVS, the business rates specialist.
“We’re expecting the government to change the business rates revaluation date to 2017. A delayed revaluation and a year-on-year rates rise of at least 2% will be an intolerable pressure on businesses. Businesses must continue managing increasing overheads including rates, based on inflated 2008 rent levels in comparison to current rental levels in some areas and sectors. It is an issue that must be addressed with a rates freeze at the very least for the short term.
Those in the automotive industry can appeal to reduce their assessment and their rates bills but the appeal process takes 12 to 18 months to produce a conclusion due to the cumbersome, bureaucratic processes at the Valuation Office. CVS find 50% of their appeals result in a reduction to the rates bill.
For details on reducing business rates please call 0800 043 0091.