A new Non-Domestic Rating Bill was introduced in the House of Commons in March this year, in a bid to modernise the business rates system. The bill includes more frequent revaluations, with the current 2023 rating list set to last three years. However, according to ratings company RVA Surveyors, the information held by the Valuation Office Agency (VOA) can never be fully accurate without each individual commercial property being inspected within the three-year rating list.
The government has implemented several measures to support businesses during the pandemic, including freezing the multipliers and expanding the retail relief scheme, now known as Retail Hospitality and Leisure (RHL). Unfortunately, when the relief is removed, businesses may find themselves unable to pay their full liabilities, resulting in an increase in insolvencies.
David Kelly, Head of Insolvency at PwC, said: “Data shows the UK has had the highest quarterly number (6,342) of company insolvencies since the financial crisis in 2009. In total, in the first half of 2023, there have been approximately 13,000 corporate failures.”
Anthony Hughes, Managing Director at RVA Surveyors, commented: “Unless each individual commercial property is inspected within the three-year rating list, based on its own merits and unique assets, the information held by the VOA can never be fully accurate. It is well within their ability to inspect every property within a rating list to ensure accuracy before a new revaluation. They have the manpower; they just need the willpower to do so.”
The introduction of a Non-Domestic Rating Bill in the House of Commons was aimed at modernising the business rates system by introducing more frequent revaluations. However, ratings company RVA Surveyors has highlighted the need for the VOA to inspect every individual property to ensure accurate information before the new revaluation. Despite government measures to support businesses during the pandemic, there is a risk of insolvency when relief is removed if businesses are unable to pay their full liabilities.
Derick is an experienced reporter having held multiple senior roles for large publishers across Europe. Specialist subjects include small business and financial emerging markets.