This week's Autumn Statement failed to address any of the pressing changes required to the Business Rates system. The ‘abolition’ of the uniform business rate and the retention of taxes by local authorities are not only misleading claims, but also of little or no consequence to the average business right now. The continuation of small business rate relief for another year was never really in doubt.

With the 2017 revaluation for all UK commercial property on the horizon, what we really needed to know was what will be happening to rates in the immediate future. Here are some of our predictions:

A shorter, three-year rating period

The government talked of reform by 2020, lending weight to the argument that we will be looking at a shorter three-year rating period. The major consequence of this being that transitional relief, currently applied to ease the impact of large rate hikes, would have to be factored on a considerably steeper scale for those in areas that have seen major increases in value since the last revaluation in 2008.

Paying to appeal

In a move that seems almost inevitable, there is likely to be a charge issued by the VOA for companies wishing to appeal. Whether this is going to be a significant value or a nominal charge is unknown, but be prepared for your standard barrage of calls from small rating agencies now including an upfront fee.

A six-month appeal limit

The current system in Scotland requires appeals to be submitted within the first six months of the rating period, reducing the overall burden of appeals for the Valuation Office. In an area like London and the South East, where the bulk of rateable value is located, the logistics will inevitably deny a huge number of companies the chance to appeal in time.

So what should businesses be doing?

While we won’t know more until April, preparation is the key here. April 2017 isn’t too far away and many of you have already begun setting budgets for 17/18.

Your new rateable values will actually be made available to us for a consultation period during 2016 and as a Savills client, should you be required to submit by a deadline or pay to submit appeals, having us in place is going to ensure you stay abreast of the changes.

Further information

If you’d like to discuss anything to do with the upcoming rating period, call us 0207 409 8906 or email businessrates@savills.com.