Call for more certainty over business rate provisions
Whitehall must provide certainty for councils to stop changes to business rates costing them ‘considerable sums’, according to local government groups.
CIPFA and the Local Government Association have expressed concern that the move to value properties every three years rather than five could result in more business rate appeals.
They spoke to PF after a letter emerged in April suggesting the government had u-turned on a promise to compensate councils for loss of income due to the reversal of the so-called ‘staircase tax’.
This is where businesses occupying more than one floor with stairs between were taxed for the separate levels as if they were different buildings.
Reversing this will mean councils are collecting less in business rates.
Chancellor Philip Hammond promised to reduce the valuations cycle in last year’s autumn Budget and in March brought the next valuation ahead a year to 2021.
Jo Pitt, CIPFA’s local government policy advisor, said appeals can cost councils “considerable amounts” and “takes money out of the system for public services”.