Skip to main content Skip to footer

Government Fails to Act on Business Rates Reform or Provide Clarity on Transitional Arrangements in Spring Statement

23 03 22 Government fails to act on business rates reform hero

Any implementation of phased downwards transition in the next revaluation will stifle recovery in the high street and hinder the levelling up agenda.


John Webber, Head of Business Rates at Colliers said, “Although this was primarily a “consumer led” Spring statement addressing issues such as costs of living rises and high energy bills, it was disappointing that the “elephant in the room”, business rates, was largely ignored despite the impact that ultra-high rates bills has had on businesses in recent years.

The Chancellor re-iterated the 50% business rates discount for the retail, leisure and hospitality sector as of 1 April but with a cap of £110,000 per company, this will only support the smallest businesses in the sectors and will do little to help the larger companies who account for the majority of jobs. Any support to businesses in other sectors of the economy was also totally lacking.

Longer term, for the retail and hospitality sector, we do have a rating revaluation in 2023 to look forward to - whereby rates bills will based on rental values of 2021- and this should hopefully mean bills will come down for many in these struggling sectors. But this will be meaningless if the government does not allow business rates reductions to be implemented immediately rather than spreading them over the years of the list in a transitional arrangement as it did in the last list of 2017.”

Downwards transition meant many businesses in these sectors paid too high business rates for too long. It was a key factor in the demise of Toys R Us, Laura Ashley and other high street brands and had a major impact on the high streets of many of the UK’s provincial and poorer towns- areas of the country the government claims it now wishes to “Level Up.”

Webber continued, “Retailers and other high street operators will be now considering their business plans now for next year and looking closely at their future business rates liabilities, particularly when the COVID-related reliefs come to an end. It is essential the Chancellor provides reassurance that rates bills next year will immediately reflect the lower rents we are seeing in the market now, providing incentives for businesses to keep or expand space and for property investors to invest in the sector across the UK.

Without this reassurance the government’s "levelling up agenda” will be meaningless. And the high street unlikely to get back on its feet.  We are disappointed the Chancellor was not more forthright in his Statement today.”

View our Business Rates services


Related Experts

John Webber

Head of Rating

Rating

Birmingham

I have over 35 years’ experience in the rating industry and lead a 135 plus rating team at Colliers.  When I took over responsibility for the team in 2005, it consisted of only a dozen people and has now grown into one of the leading rating advisory teams in the country.  I am a member of Colliers' UK Management Executive as well as sitting on the company’s Balance in Business Committee. 

I am regularly called upon by the national media to give my views on a range of business rates issues and I am involved in lobbying MPs/ministers and senior civil servants on business rates matters.

I started my career in the Valuation Office Agency in Kidderminster.  I joined Gerald Eve in 2000 where I spent 10 years before moving to Gooch Webster (now Colliers). I sit on the National Retail Panel of Rating Surveyors Association which provides guidance on how the RSA town committees work with the VOA and valuation matters.  I have also held the postion as Chair of the RICS Rating Diploma Committee having passed the prestigious qualification in 2014. I currently sit on the Rating Surveyors Association National Committee .

Along with Philip Harrison we founded 'Accurates' in 2007, the Collier's Compliance and Audit team, which although forms an integral part of the Rating team is now a leading brand in its own right.

View expert

Suzy Simpson

Head of Content, Communications and PR

PR

London - West End

As Head of Content, Communications & PR for Colliers in the UK, I am responsible for driving the strategic direction of corporate communications, media relations, and the programming and production of multi-channel content to engage external and internal audiences across the UK.

Get in touch for help with: 

  • Content Communication Strategy 
  • Media Relations
  • Corporate & Internal Communications
  • Media Training & Personal Brand Training

 

View expert