LGA statement: Business rates revaluation

LGA press release 17 February 2017

Cllr Claire Kober, Chair of the Local Government Association's Resources Board, said:

"Councils do not set business rates. The revaluation of business rates is a matter for central government and the Valuation Office Agency.

"While most businesses are paying the same or lower rates, businesses in some parts of country are affected more by rate rises. Any increases or reductions in business rates income due to the revaluation are balanced out and will result in no change to the amount of business rates paid in England overall.

"For every £1 that a business rates bill goes up due to the revaluation, another business rates bill somewhere else will have gone down. This means that local government will not see any increase or reduction in funding through business rates as a result of the revaluation.

"However, councils currently fund half of all business rates refunds on appeal and have been forced to divert £2.5 billion over the past five years to cover the risk of appeals and refunds. This means vital resources being diverted away from stretched local services, such as caring for the elderly, supporting businesses and boosting local growth.

"By 2020, local government will retain more of its business rates income and could become liable for 100 per cent of refunds. Any possible rise in appeals as a result of this latest revaluation makes reform of the appeals system even more urgent to protect councils from the growing and costly risk of appeals and ensure businesses are happy with what they pay."

17 February 2017

Contact

Greg Burns
0207 664 3184
greg.burns@local.gov.uk