The Government announced last week that the revaluation of business rates will be delayed, and that instead of being revalued in 2015 (based on 2013 prices), they will now be revalued in 2017, based in 2017 prices.
The minister in charge of the decision, Brandon Lewis, said it the decision would avoid local firms and local shops facing unexpected hikes in their business rate bills over the next five years.
But others were not so happy. Mark Rigby, chief executive of business rates specialist CVS, said extending the
current charging regime until 2017 was "simply heaping pain upon
pain for businesses crying out for some respite from government".
And Brigid Simmonds of the British Beer and Pub Association said: "The revaluation is an opportunity to get a fairer rates bill, so any delay is very unwelcome."
So who's right? The Government, which thinks a delay will help because it will stop unexpected rates rises, or other business groups who thought an earlier revaluation would result in a reduction?
I believe this decision will result in businesses paying higher rates for longer, as, there is every expectation were a valuation to have been made in 2013, that this would have been less than the 2008 valuation.
This announcement is a poor policy decision, given the significance of Business Rates to our overheads.
Fallowfields Hotel and Restaurant, Oxfordshire