Initial response to business rates announcements in the 2017 Spring Budget

08 March 2017

David Parker, head of rating at Savills, responds to the business rates announcement in the Spring Budget 2017. 

“Whilst the measures announced in today’s Budget regarding business rates are welcome, it is disappointing that their extent will not address many of the problems UK businesses are facing with their business rates liabilities. Those confronted with substantial increases will still pay substantial increases, albeit now with some softening . However, those who should be getting reductions in their liabilities still won’t get those reductions.  

“The impact of postponing the 2015 revaluation for two years generated more issues than could possibly have been anticipated so the confirmation of more regular revaluations in the future will undoubtedly cushion the largest changes and allow businesses to plan ahead with greater certainty.

“The recognition of the liabilities faced by the leisure sector in particular by introducing a £1,000 concession for pubs with rateable values below £100,000 is appreciated, but as was the case with the retail relief offered in recent years, it doesn’t go far enough to cap some of the larger increases in rates bills.  Furthermore, it takes no account of hotels or restaurants which are facing similar increases.  Due to a different valuation method applicable to much of the leisure industry, average increases in rates bills have tended to be higher than conventional properties in many locations, it therefore would have been useful to see more being done to assist those businesses ahead of the arrival of the new rates bills.”

 
 

General Enquiries

Savills Margaret Street

 

Key Contacts

David Parker

David Parker

Director
Rating

Savills Finsbury Circus House

+44 (0) 20 7409 8914

 

Liz Williams-Bew

Liz Williams-Bew

Director
Commercial Marketing & Press

Savills Margaret Street

+44 (0) 20 7409 8140