BUSINESS RATES SWINDLE - TELEGRAPH CALLS FOR YORKSHIRE TO BE OVERCHARGED

BUSINESS RATES SWINDLE

YORKSHIRE PAYING 10% too much

LONDON PAYING 10% too Little

A previous blog explained how for the past five years, businesses in Yorkshire have been overpaying business rates to subsidise the South.

Now that the revaluation has been done and it has revealed the overpayment caused by the Tory cancelation of the revaluation, the Telegraph in an editorial have called for the changes to be delayed once more. According to a statement on the news today, nationally 75% of valuations have decreased (remember current valuations were done just before the slump when rents were at their highest) and 25% have increased. But we are seeing an assault in the media calling claiming that businesses are facing massive increases, much of it untrue.

Given the conservatives love of the South and hatred of the North, do not be surprised if another swindle is concocted to hit our businesses once more.

Business Rate Retention

I realise I may be a lone voice in being entirely cynical over retention of business rates but:

 

Any system that is dependent on redistribution of business rates is not a retention of business rates.

 

Talk about the advantages of retaining the benefit of growth in the business rate pool, this ignores the difference in growth between North and South. Rateable values in the south not only start from a point where they have much higher values for comparable properties but the rate of growth has been, and I see no reason for it to change, greater than in the North. So retaining the benefit of growth means that the South will get richer and richer and the surpluses will not be available for redistribution. We already see the situation where Westminster has one of the lowest community charge rates in the country, we can predict with retention of business rates they will be able to pay a premium rather than charge a community levy.

 

At the very best we will be dependent on a secretary of state (remember Eric) being fair in redistribution from mostly southern authorities to mostly northern authorities.

 

Anything else will the end of local government in large parts of the country.

Changes to Business Rates System.

Yes I know all things to do with rates is boring, and that the subject is ignores (other than complaining about having to pay them) by 99.99% of the population. BUT - things are changing and I thought I would just draw your attention to one particular change, highlighted in red below.





Check, Challenge, Appeal—reforming business rates appeals

DCLG published a summary of the con-sultation responses on 6 July, along with the Government’s response. The docu-ments can be seen at

https://www.gov.uk/government/consult ations/reforming-business-rates-appeals-check-challenge-appeal.

In the press release announcing the pub-lications, the Department said that, "businesses will benefit from a quicker and more efficient service when check-ing and challenging their business rates bills". The new process includes a VOA online service allowing customers to pro-vide information and track progress of their check or challenge.

Aims of the process are to:

 weed out speculative appeals

 make sure that genuine disputes are settled more quickly

 bring added security to councils plan-ning their budgets.



A fee will be payable to lodge an ap-peal and penalties may be imposed for providing false information.

Small businesses will benefit from a fast-tracking system, clear guidance and lower fees.