Ruddle Merz

BRC lobbies for system change

Wed, 29 Feb 2012 00:00:00 +0000

The British Retail Consortium (BRC) has begun lobbying for system change in advance of the forthcoming 5.6 per cent increase in business rates in April 2012. The BRC argues that the impending rise, linked to the retail price index (RPI), will cost retailers an additional £350m and would have a devastating effect on businesses.

It suggests that the increase should be introduced in phases or that the system of using RPI should be ditched and the consumer price index (CPI) inflation be used to calculate business rates instead.

High-profile retail consultant Mary Portas, who has undertaken a seven month review for the Prime Minister in a bid to boost sales on the high street, has backed the campaign and called for the Treasury to rethink next April's rise.

The retail consultant has also recommended that local authorities should begin using their discretionary powers to give rate concessions to new local businesses.

Rates reform the only way to save UK�s dying high streets

Thu, 09 Feb 2012 00:00:00 +0000

The Government must reform the system of business rates for retailers if it is to have any chance of saving the country's dying high streets, experts have warned.

The annual Shop Vacancy Report from the Local Data Company makes depressing reading, with a fifth of all high street shops in the North West currently standing empty, and only marginally fewer in other badly-affected regions, such as the North East.

And while the Government's high profile retail advisor, Mary Portas, has urged businesses to apply for £1m in state funding to try to halt the decline, experts have warned that without reforming key parts of the business rates system, the fund will have little to no impact.

Nick Sercombe, who has held senior positions within the Valuation Office Agency (VOA) and is now Director of Surveying at Ruddle Merz, said the planned increases in business rates, together with the failing system around empty rates relief, could kill off many businesses.

He said: "In some town centres, as many as one in three shops are already empty. If we go ahead with the 5.6 per cent increase in rates planned for April, and there aren't adequate safety nets for already struggling businesses, how many of those are going to be able to survive long enough to see out the current downturn?

"Press ahead, and it could be the death knell not just for hundreds of individual businesses but for many town centres, and all the other businesses, services and communities which depend on them."

There was an argument, Mr Sercombe conceded, that the reason some town centres were struggling was because the rise of internet shopping and out-of-town retail parks meant they were simply unviable.

Yet if that was the case, the Government needed to promote investment into property to find alternative uses for the buildings - or risk blowing a hole in many communities by creating centrally-located "ghost towns".

Instead, empty space relief for empty business space - which was reduced in 2008 to just three months for office premises and six months for industrial premises - was stifling investment.

He added: "Initially we were told that the shift in legislation on empty space was to stop new buildings standing vacant, but we now have more empty shops and offices than ever, and the revised policy is making things worse.

"The previous empty rates relief system, whereby businesses rates bills were halved until occupied encouraged property investment, development, and acquisition - something that is desperately needed to jump-start the economy.

"The system we now have penalises those speculating and investing in property, which has a knock-on effect on numerous different industries."

Ruddle Merz advises thousands of companies on their business rates to ensure they are paying the most appropriate level.

Business Rate Deferment to miss April 2012 increase

Thu, 26 Jan 2012 00:00:00 +0000

The Department for Communities & Local Government has announced that the Chancellor's deferment of the rise in business rates will not be available in time for the April 2012 increase.

The u-turn comes despite the Chancellor saying in his Autumn Statement that businesses would be allowed to defer 60% of the increase in their 2012-2013 business rate bills to the two following years. But the DCLG now says that local authorities will have to charge the full amount because the scheme won't be launched in time for the April increase.

Sarah Davey, Head of Ruddle Merz London, commented: "Although this may be a blow for some businesses hoping to put off the increase in rates, deferment is complicated and doesn't solve the problem. It just puts off the inevitable and lands businesses with a much larger bill further down the line, when they may be in an even worse financial position than they were before."

"One of the most obvious ways in which the Government can assist businesses and encourage economic growth seems to have been missed - empty rate relief. The system overhaul in 2008 which saw empty rate relief reduced has seen the government subsequently collect an extra £1 billion in rates."

"The previous empty rates relief system, whereby businesses rates bills were halved, encouraged property investment, development, and acquisition, which is something that is desperately needed to jump-start the economy."

Struggling retailers could qualify for rates relief

Tue, 15 Nov 2011 00:00:00 +0000

Struggling retailers could qualify for significant rate relief under existing laws if traditional high streets continue to be overtaken by boarded up units and charity shops, an industry expert has warned.

Lobby groups such as the British Retail Consortium and The Booksellers Association have called on the Government to use this month's mini-budget to give retailers extensive tax breaks in a bid to revive the ailing sector.

But experts have warned that retailers such as bookshops could qualify for significant rate relief already under rules surrounding what is known as material changes in circumstances.

Nick Sercombe, of business rate specialist, Ruddle Merz, said those retailers which have survived so far could claim that their businesses are being hit by the fact that traditional high streets have been overcome by empty units and charity shops.

He said: "Any retailer could argue that high streets full of charity stores are less attractive places to shop, which then deters their customers from visiting.

"But stores such as bookshops, which are often in direct competition with charity units, have an even more compelling case and could claim relief based on that being a material change of circumstances."

If successful, it could lead to stores trading almost for free as many landlords have already agreed nominal £1-a-year rents simply to avoid their premises becoming empty, for which property owners are liable for business rates.

Shopping guru, Mary Portas, sparked controversy by claiming there were too many charity shops and that start-up retailers should be given the same tax breaks in a creative attempt to breathe fresh life into Britain's ailing town centres.

Portas, who is also the author of a forthcoming government report into the future of the British high street commissioned by Prime Minister, David Cameron, is thought to have also proposed making it easier for supermarkets to set up in town centres and make it harder to build new retail parks.

Mr Sercombe said: "The Government needs to think of creative ideas to breathe fresh life into the high street simply to avoid traditional town centres dying out.

"But in the meantime, retailers such as book shops could protect themselves by claiming temporary discounts on their biggest existing outgoings - and that includes business rates.

"Businesses are suffering right now and, in high streets like Margate, Wandsworth, Blackpool and Rotherham, where occupancy rates are among the worst in the country, the council needs to recognise that those who remain need help.

"Giving rate relief like this across the whole country may cost millions, but the cost of failing to act could be much worse. Once those stores close as well, it's too late to encourage shoppers back with cheap rates for start-ups or free rent."

Additional Enterprise Zones announced

Wed, 17 Aug 2011 00:00:00 +0000

Government has today announced the following new enterprise zones, in addition to those already named in the March 2011 budget in Leeds, Sheffield, Birmingham, Bristol, Liverpool, London, Manchester, Derby, Nottingham, the Black Country, the Tees Valley, the West of England and the North East.

The newly announced zones are:

Daresbury Science Campus, Runcorn
Newquay AeroHub, Cornwall
The Solent Enterprise Zone, Daedalus Airfield in Gosport
Rotherwas Enterprise Zone, Hereford;
Discovery Park in Sandwich, Kent
Enterprise West Essex, Harlow
Science Vale UK, Oxfordshire
Alconbury Airfield, Cambridgeshire
Great Yarmouth, Norfolk
Lowestoft, Suffolk;
Northampton Waterside
MIRA Technology Park, Hinckley Leicestershire
Humber Estuary Renewable Energy Super Cluster

Government ministers have advised that up to 30,000 new jobs could be created by 2015, encouraging new businesses in these areas with incentives which include dramatically reduced business rates, super-fast broadband and lower levels of planning control.

The scheme has also attracted criticism, with sceptics arguing that jobs will simply be displaced from other areas which do not enjoy these benefits.

Communities and Local Government Secretary Eric Pickles said the government hoped to achieve a "rebalance of the economy from public sector jobs" and a reduction of the "dependency on financial industries". He commented: "Our low-tax, low-regulation Enterprise Zones will help make our country the best place in Europe to start and grow a business."

Contact Ruddle Merz today for advice on how the new enterprise zones could affect your business rates liability.

New additions to the Ruddle Merz team!

Mon, 20 Jun 2011 00:00:00 +0000

Within the last few months, Ruddle Merz has strengthened its sales team.

Sales Team Leader : Adrian Desborough joined the company in May. Adrian held various sales positions within EMAP between 1988 - 2004, before moving to Bourne Publishing where he was appointed Advertising Manager.

Sales Advisor : Nikki Taylor joined the team this month. Nikki's most recent career since 2003 has been with the Rutland and Stamford Mercury / Rutland Times selling advertising followed by her previous employer RSVP, where she was a client advisor.

Sales Advisor : Sally Howarth-Conway joined the company in February 2011. Sally's career has been in the hotel industry where she was most recently Revenue Manager for 5 years at Stapleford Park responsible for converting leads into bookings across all income streams of the business.

Tim Bonham, Chief Executive of Ruddle Merz, says ‘The new team members bring valuable expertise to our already experienced sales department, and we look forward to reaping the benefits of their combined talents.'

BID Schemes on the rise

Fri, 11 Mar 2011 00:00:00 +0000

Despite the controversy behind their creation, the majority of BID Schemes (Business Improvement Development) appear to be successful.

Bid Schemes are set in place by a non profit steering group with an aim to improve trading conditions for local businesses.

These businesses pay a levy on top of their existing rates into a ‘pot' that can be used for regeneration of the local area.

In Dorchester, a free parking scheme to boost town centre trade has been warmly received by traders and shoppers alike. Any shopper spending £10 or more in local shops was given two hours of free parking. Many businesses that are signed up to the scheme have reported an increase in sales since the scheme began in November 2010.

Traders in the Boston BID Scheme have appointed three wardens to deter shoplifters and other minor criminal offences. The Wardens cover from 7am to 7pm, seven days a week and although traders would like to see the success of this scheme extended, they are limited by cost.

Employees of businesses in the Worcester BID Scheme are being given loyalty cards. The card entitles them to a permanent range of discounts in stores within the city centre who are members of the BID Scheme. The aim is to encourage the people who work in the centre to spend their money locally in the lunch hour or after work, aiding the survival of independent stores.

These are only a few examples of innovative stories concerning BID Schemes which are growing in popularity.

Relief Deadline Draws Near

Wed, 29 Sep 2010 00:00:00 +0000

Rates relief worth 200 million pounds could potentially be lost if small businesses fail to apply for it before the deadline at the end of this month.

If a business has occupied commercial premises in the three year period ending April 2010, then they could qualify for help under the revised Small Business Rates Relief (SBRR) Scheme. For businesses with a rateable value of less than £6000 occupying one property, relief of up to 100 percent is available.

The new scale relief for the SBRR was produced following a 20 percent increase in rateable values for 2010-2011. The relief for empty properties has also been extended so that vacant sites with a rateable value of less than £18,000 will be exempt from business rates for one year.

Time is running out to take advantage of this amended relief. Ruddle Merz have helped many clients secure SBRR and save money. Call 0800 883 0353 for a free business rates review or email us at enquiries@ruddlemerz.co.uk.

Are BID Schemes Worthwhile?

Mon, 27 Sep 2010 00:00:00 +0000

There are currently more than 100 Business Improvement District (BID) schemes in place across the country. The scheme requires local businesses to pay an increased charge on their current business rates to create a fund, which would be used to improve the local area. The extra services are to be provided on top of those already supplied by the council and include ensuring the town centre is cleaner, with better promotion and marketing for businesses in the town. Decisions on the areas to be improved are decided by the businesses in the scheme.

To set up a BID scheme, a non profit steering group, comprised of property owners and local businesses encourages other businesses in the area to vote in a ballot. If the vote agrees for the scheme to be adopted, it will then run for five years. The overall aim is to improve trading conditions for the local businesses and increase the competitiveness of the area.

So far, many of the schemes seem to have been successful. The areas have seen increased footfall and cleaner, more vibrant towns. Also, in the majority of UK BID schemes, properties with rateable values of less than £7,500 are exempt from voting or paying the levy, but they can voluntarily choose to take part in the scheme if it proceeds.

But for some, the added strain of the levy on top of increased business rates is not worth the potential benefit of the BID scheme. Many companies are failing to pay the levy as well as their business rates, resulting in councils having to take legal action. Also, some larger chain stores do not support the BID schemes, angering smaller businesses. It is after all due to large retail shopping parks that many local businesses are suffering, hence the reason for most BID schemes.

Impending Government Cuts Worry Struggling Businesses

Mon, 13 Sep 2010 00:00:00 +0000

With more government spending cuts looming and some town centres resembling ‘ghost towns', many businesses are concerned for their survival.

An estimated 117,000 premises are now vacant or boarded up, with a large ‘to let' sign the only recent decoration. A separate report estimated that 9,000 stores ceased trading in the first six months of this year, equating to fifty shops a day.

The hardest hit areas seem to be in the Midlands and the North, echoing the findings of a recent study that these areas are the least resilient to economic shock.

Although economic recovery is underway, high street shops are still struggling to pay large bills for business rates and rents. For many, parking and access issues to their premises add to the growing headache of starting and maintaining a new business in these tough times.

Many owners argue that local councils should be doing more to help struggling businesses, but some are still unaware of the reliefs that are available.

Tim Bonham, Chief Executive Officer at Ruddle Merz comments, "Every opportunity needs to be investigated for new and existing businesses, to ensure their overheads are not higher than they need to be. Ruddle Merz have successfully reduced business rates for many clients, not only by challenging rateable values, but also by claiming relief for empty space and material changes of circumstances (MCC's) as well as rent negotiations. We essentially provide a ‘hassle free' service, taking care of all required paperwork, leaving the client free to deal with the day to day running of the business. With our ‘no win no fee' basis, there is nothing to be lost by employing our services and much to be gained."

Help for Pubs from Coalition Government

Wed, 08 Sep 2010 00:00:00 +0000

Official figures show there was a net closure of 3,530 pubs across England under Labour from 1997 to 2010. The new coalition government has proposed further changes in their bid to help pubs struck by crippling business rates and reduced trade due to ‘loss leading' by some supermarkets.

Along with the proposal to automate small business rate relief, the government also wishes to give councils powers to levy discretionary business rate discounts - which, for example, could be used to support local pubs. They also propose to ban the sale of cut price alcohol and have already scrapped the planned 10% rise in cider duties.

This month, a report by the British Beer and Pub Association said that alcohol consumption in 2009 saw the sharpest year-on-year decline since 1948. Pubs, bars, off-licences and restaurants all saw alcohol sales fall, with the decline being attributed not only to the recession, but also hopefully due to the message getting through to the public on responsible drinking. Nonetheless, these proposals may be too late for many struggling publicans.

Nick Sercombe, Director of Surveying Services says," In the meantime, the existing rating system allows for MCC (Material Changes in Circumstances) to be lodged where trade has dropped as a result of physical factors in the locality. This could be the opening or expansion of new pubs in the area which has taken trade away from the subject premises. Ruddle Merz have been successful in many situations outlined above and remain available for advice."

Temporary Increase in Small Business Rate Relief

Mon, 06 Sep 2010 00:00:00 +0000

As the deadline for the change in small business rate relief (1^st October 2010) draws near, Nick Sercombe, Director of Surveying Services at Ruddle Merz, reviews the current government plan to automate small business rate relief.

For a temporary period starting on the 1^st October 2010 to 30 September 2011, the relief for small business rates will be increased. Businesses with a rateable value of up to £6,000 will be entitled to 100% relief. If the rateable value is between £6,001 and £12,000, then relief will be applied on a sliding scale between 100% and 0%.

If businesses believe they are entitled to this relief, applications have to be made to the local council and confirmation must be given that no other property is occupied above the prescribed limit. Automation of this service will not be as simple as thought though, as local authorities cannot determine if the ratepayer occupies another property without an application. Major alterations to the existing scheme would need to be made if the Government is to fulfil its pre election promise.

Congratulations!

Fri, 03 Sep 2010 00:00:00 +0000

Company congratulations go to two of the Ruddle Merz team!

Mike Hiseman, Network Support Manager passed his PRINCE2 exam in July this year. A lot of hard work went into his revision, much of which was completed in his own time. The PRINCE2 certification demonstrates the skills needed to be an informed member of a project management team using the PRINCE2 method, including understanding the principles and terminology of PRINCE2.

Adam Barnfield, Regional Surveying Technician achieved his City & Guilds Level 3 certificate in 2D CAD (Computer Aided Design) in July this year, the highest level. CAD is the way in which technology is folded into a design process and is an important industrial art.

Both qualifications are considerable achievements and will give added value to Ruddle Merz's services.

Tim Bonham, CEO at Ruddle Merz commented: "It is wonderful news that both Adam and Mike have recently improved their skills within their respective teams. Surveying and I.T are both complex and technical areas where it pays to stay ahead of the times. Ensuring our staff are trained and regularly updated on the skills and technologies necessary in their fields, means we can always be sure of providing an excellent level of service to our clients nationwide, and I congratulate Mike and Adam on their efforts."

Shopkeeper facing eviction over unpaid rates

Mon, 16 Aug 2010 00:00:00 +0000

The owner of a small food and gift shop in Carlisle is facing eviction because she cannot afford to pay her business rates. The business was started over a year and a half ago and was making more than it is now. With VAT to rise to 20 per cent in January, most shop owners are worried about the effect it will have on their already struggling businesses.

The council commented that they had done everything they could to help the owner, including agreeing a special arrangement over which would have spread the business rates payment over a longer period.

Anyone who fails to pay their business rates on time will be given a reminder, then a final notice. Failure to pay a reminder notice will land the company with a court summons. If the business fails to pay at the reminder or final notice stage then they will lose the right to pay in instalments.

The council say they have undertaken a number of measures to support local businesses during the recent difficult economic times, including working with Business Link to help with other support services.

Nick Sercombe, Director of Surveying Services comments, "Business Rates are a fact of life. They have to be paid and we would never advocate refusing payment. However, there are ways to save money which are within the law and every opportunity should be taken, such as:

•1. Spreading the payment over a maximum period.

•2. Ensuring that the rateable value is correct by checking the floor areas, level of assessment and reflecting any abnormalities of the site.

•3. Making full use of the empty space provisions for under used properties.

•4. Obtaining reliefs for certain charitable occupations.

•5. Challenging the level of assessment when a material change of circumstances occurs in the locality.

Ruddle Merz can help with all of the above. For a free Business Rate Review please call 0800 883 03 53 or email enquiries@ruddlemerz.co.uk.

2005 Rating List Appeals

Thu, 12 Aug 2010 00:00:00 +0000

The 2005 List closed on 31st March 2010, and no new appeals will now be accepted by the Valuation Office against the 2005 List Complied RV's (those set on 1st April 2005).

There are still opportunities to challenge your 2005 RV, albeit informally rather than by formal appeal.

Mergers or splits may still be applied to the 2005 Rating List and reducing your property's 2005 RV could have a "knock-on" effect on your 2010 RV, creating additional savings in your future years liability.

Additional Rates Savings

Thu, 12 Aug 2010 00:00:00 +0000

Our surveying team have a wealth of knowledge on Empty Space relief and can advise you on a number of strategies to minimise the cost to your business when faced with empty space.

Road and building works, even refurbishments to your own property, can also entitle you to temporary Rate relief. Material Change in Circumstance (MCC) appeals can be lodged while works are ongoing, and so should be acted upon quickly.

Any disruption to your business caused by noise, dust or access restrictions should be reported to our Client Care team on 0800 883 0353.

New Staff at Ruddle Merz

Wed, 11 Aug 2010 00:00:00 +0000

Due to our continued expansion, several new members of staff have been welcomed over the past few months.

Faith Johnson has joined the Administration team and will also be assisting Kathy Morgan in the Accounts department. Elaine Jones has been appointed as Deputy Bill Audit Manager to replace Hayley Povey, who has taken on the role of Business Support Manager.

The Ruddle Merz London team has also been boosted by the appointments of Chartered Surveyor Hugo Rawstorne, who joined the team with three years of experience in rating in the City, and that of Administrator Adrienn Seregely.

Richard Woodhead joined the RM Water Services team this month. With 21 years experience in the Water Industry. Richard is a Chartered Civil Engineer and recently gained an MBA from the University of Bradford.

Allan Milton Retires

Wed, 11 Aug 2010 00:00:00 +0000

In June, Ruddle Merz staff bid farewell to their Business Development Director Allan Milton, who has retired after five years of valued service.

A popular member of the team, Allan was responsible for making a number of successful Marketing and Development initiatives within Ruddle Merz. Working with existing and prospective clients, Allan utilised his knowledge of Marketing and Client Care to great effect, bringing on board some of Ruddle Merz's largest clients.

Ruddle Merz wishes Allan all the very best for his retirement. We have no doubt he will be sorely missed by both clients and staff alike.

2010 Rating List Goes Live

Wed, 11 Aug 2010 00:00:00 +0000

The 2010 Rating Revaluation is now complete, and the revised 2010 List Rateable Values have been used by Local Authorities to calculate 2010/11 rates liabilities for business premises nationwide.

While the VOA have widely publicised the successful completion of this massive undertaking, the process has been far from plain sailing. The economic downturn meant that many businesses which were struggling before the 2010 Revaluation have been hard hit by large increases in sales demands.

Nick Sercombe, Director of Surveying Services is keen to point out that rating valuation always needs to be looked at carefully. "Generally speaking, public authorities are playing down the ecomonic impact of the new Rating List because they say the Rateable Value changes are low."

"Whilst this may be the case in some instances, it will most certainly not be the case for all businesses, especially as there have been such changes in the business landscape over the last 18 months.

The new Rating List provides opportunities to challenge Rateable Values, and to check survey details to ensure that any site changes are looked at in detail. Appeals have to be made to the Valuation Office, and if they are successful, companies could be eligible for rate rebates of thousands of pounds."

Contact our Client Care team on 0800 883 0353 or email client.care@ruddlemerz.co.uk to find out how we could help cut your rates liability.

Another blow for pubs?

Tue, 20 Jul 2010 00:00:00 +0000

It seems the rising costs of Sky subscription fees are placing a further pinch in the already cash strapped pockets of some pubs. The huge rises in many business's rateable values announced earlier this year, which the increased Sky subscriptions are linked to, mean many publicans are feeling hard done by.

Most subscription fees have increased by almost 40%, leaving landlords debating whether to retain Sky sports and to accuse Sky of "bleeding pubs dry" at a time of financial hardship. Sky sports has been placed into many pubs, hoping to add to the income and great regular trade. Unfortunately, with the supermarkets gaining an edge with offers of cheap beer and wine multi deals, combined with the rising cost of Sky, publicans have found themselves out of pocket.

Sky say they have invested heavily to broadcast more than 40,000 hours of sport for next season and have also held their prices for the past two years.

If you have been affected by any of the above, contact Ruddle Merz on 0800 883 0353

City Centre regeneration off to a flying start

Tue, 20 Jul 2010 00:00:00 +0000

A major boost has been given to Leicester's regeneration plans. Learndirect, the well known training agency, will expand its Leicester base when it moves to its new premises at One Colton Square, off St George's Way. The move will be the city centre's biggest office letting deal in a decade and has business leaders highlighting the need for further office development in this part of the city.

Leicester is viewed as a central location by many businesses. One Colton Square is situated near Leicester railway station and viewed by many as quality office accommodation. The fact that the building, which once was home to Charles Street police station, is now more than three quarters full is an encouraging sign for the redevelopment of the area.

Plans to clear a site for the proposed second phase development near to the railway station, have unfortunately been thrown into doubt by the rethink of the government funding, which involved £9 million from East Midlands Development Agency.

If allowed to proceed, the construction for the second phase may create disruption to established businesses in the area. These companies can benefit not only from the regeneration of the proposed site, but by also seeking a temporary reduction in their business rates.

To find out more, please contact Ruddle Merz on 0800 883 0353.

Transitional Arrangements

Thu, 15 Jul 2010 00:00:00 +0000

Following the Revaluation, the Government has published details of the Transitional scheme for the 2010 Rating List. But what exactly is Transition, and how does it affect your rates liability?

The idea behind Revaluation is to ensure fairness of the Rating List. When a Revaluation takes place, there could be extreme rises or falls in value. This may produce disproportionate increases or decreases in rates liabilities, so in the 1990's the Government introduced Transitional arrangements.

Transition is a mechanism to "smooth out" large increases or decreases by giving relief or adding a surcharge to rates bills and thereby producing a more acceptable level of payment.

For the 2010 Rating List, any property with an increase in Rateable Value of more than 31% will benefit from Transitional Relief to phase in this increase. Conversely, any properties which have seen an increase of 11% or less will be affected by Transitional Surcharge, so that a reduction in rates liability will not be immediately noticeable until the property is out of Transition. How long your property is subject to Transition is dependent on the extent of the change in its Rateable Value.

To have your Business Rates demands thoroughly checked by our dedicated Bill Audit team at no extra cost, please contact us on 0800 883 0353.

Emergency Budget response and Business Rates implications

Fri, 02 Jul 2010 00:00:00 +0000

The Chancellor of the Exchequer, George Osborne MP, recently delivered his much anticipated emergency Budget statement. In it, he acknowledged that Business Rates were a "significant cost, particularly for smaller businesses".

The statement continued: "The Government has already legislated to freeze payments of certain significant backdated business rates bills until April 2011, including for businesses in ports. To resolve this issue, it will bring forward legislation to cancel such bills for newly assessed properties that were split from a larger rateable property."

" Legislation will also now be laid for a temporary increase in the level of small business rate relief, for one year from October 2010. It is estimated that over half a million businesses across England will benefit."

This news will no doubt be welcomed by the owners of ports, recently hit by large rates bills which had been backdated by eight years in some cases. The owners of small businesses struggling during the recession will also appreciate a higher level of rate relief, albeit only for one year. Certainly, the latest Rates Revaluation has hit many businesses hard, with a steep rise in rates liabilities seen across the country for small and larger business alike. However, it looks as if occupiers of larger properties which do not qualify for Small Business Rate Relief, some of whom were faced by increases in their rates of up to 120% in areas, will be left to shoulder the burden.

Contact Ruddle Merz today to find out how we could help to reduce your property's Rateable Value by correcting errors in its valuation. Our team of Surveying experts can advise you on a range of Rate-related matters including empty rate relief and Material Changes in Circumstance.

2010 INCREASES - CONFUSION ABOUNDS

Mon, 30 Nov 2009 00:00:00 +0000

Average rateable values nationwide are expected to increase by around 15% as a result of the 2010 Revaluation, though uncertainty abounds.

In April 2010 a new Rating List will be introduced and draft 2010 rateable value figures published in October are hitting desks now. There is much confusion as to the amount of rates businesses will actually pay, with some sectors and areas of the country expecting to see huge hikes. The new rateable values are based on rental values at 1^st April 2008, shortly before many rents dropped dramatically due to the recession.

Caf�s and service stations that offer wi-fi worry rates may increase

Mon, 09 Nov 2009 00:00:00 +0000

Speculation is rife about the impact of wi-fi as The Times recently reported that the government agency that determines business rates has said that it will take wireless broadband networks into account when conducting assessments.

The move by the Valuation Office Agency (VOA) has raised fears among owners of businesses, such as cafés and service stations, that offer wi-fi access to customers that their rates may increase.

The agency said that its valuation officers were working "proactively in approaching wi-fi operators to ensure they have accurate information on all wi-fi sites".

It insisted that there had been no change in its ratings policy, but concerns remain that businesses could be penalised - in the form of higher business rates - for providing a service that the Government has encouraged.

Rates Deferral

Wed, 03 Jun 2009 00:00:00 +0000

Comment from Tim Bonham...

The Government's latest initiative to give businesses the opportunity to defer the recent 5% business rate increase has met with a lukewarm response and we expect it will have little impact. Reducing taxation on empty space would have been a much better strategy, many property owners and developers are still facing the decision of knocking down empty buildings to avoid these crippling costs.

The Business Rate Supplement

Wed, 06 May 2009 00:00:00 +0000

Comment from Sarah Davey - Head of Rating, London

The Business Rate Supplement looks set to become law by 1 April 2010. The Bill will provide powers to local authorities to levy additional business rates against rateable values over £50,000 to fund specific local economic development, such as infrastructure projects.

Whilst ratepayers must be consulted and have an opportunity to vote before any supplement is introduced this will only kick in where the supplement would fund more than one third of any one project. As a practical example, it is difficult to envisage a supplement levied by the Greater London Authority funding anything like one third the cost of Crossrail. I'll leave you to draw your own conclusions.

Gordon Brown considers the Bill will provide a ‘vital new tool for councils to promote long-term economic growth'. Nevertheless, in these tough economic times, it will be seen as a kick in the teeth to many ratepayers, particularly at a time of great uncertainty with the introduction of the new 2010 rating list, which could reset values as much as 100% or higher than at present, particularly in some areas of London.

Once again, small to medium enterprises will bear the brunt of added business rates expense at a time they can least afford it. Isn't it about time they got some relief if they, the ‘engine room' of the British economy, are going to do their job and begin to kick-start the country towards recovery?

Budget Disappointment

Wed, 29 Apr 2009 00:00:00 +0000

Comment from Tim Bonham...

I'm really disappointed that nowhere in the Chancellor's Budget is there anything about abolishing empty property rates. The empty rates taxation will continue to see buildings costing their owners a huge amount whilst properties sit empty, or even worse demolished. This harsh tax impacts hugely on the property sector at the wrong time and the industry has been lobbying the Government hard on the issue, but it looks like we have been ignored.

Struggling retailers could qualify for rates relief

Thu, 01 Jan 1970 01:00:00 +0000

Struggling retailers could qualify for significant rate relief under existing laws if traditional high streets continue to be overtaken by boarded up units and charity shops.

But experts have warned that retailers such as bookshops could qualify for significant rate relief already under rules surrounding what is known as material changes in circumstances.

He said: "Any retailer could argue that high streets full of charity stores are less attractive places to shop, which then deters their customers from visiting.

Mr Sercombe said: "The Government needs to think of creative ideas to breathe fresh life into the high street simply to avoid traditional town centres dying out.

"But in the meantime, retailers such as book shops could protect themselves by claiming temporary discounts on their biggest existing outgoings - and that includes business rates.