The government has confirmed that it intends to introduce a bill to “create a fairer, more accurate business rates system” in England.
This would involve: shortening the revaluation cycle from five to three years from 2023; improving valuation accuracy; tightening appeals against rates on the basis of changing circumstances; and introducing 12-month rates relief for improvements that increase the rateable value of properties
A summary of the bill was included in a government document published as briefing notes for the Queen’s Speech.
The document claimed the main benefits of the bill would be “modernising the business rates system with more frequent valuations based on more accurate data” and “driving growth by making rates bills more responsive to economic changes”.
It would also incentivise business ratepayers to invest in their properties and decarbonise, with the support of new reliefs.
“Local authorities have been asking for reform of the business rates system for many years and now they will face the challenge of assessing the impact of the planned reforms on their finances, operations and strategies on regeneration and local economic development,” said Peter Cudlip, head of public and social sector at audit firm Mazars.
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