DCLG consults on streamlined appeals system for business rates

The DCLG said the process would comprise the following:

• check – “ensuring the relevant facts are up to date and accurate, with any agreed errors quickly corrected”;
• challenge – “allowing the business to challenge the rateable value on which their business rates bill is based, giving them the opportunity to set out their grounds for challenging, an alternative valuation and to put forward supporting evidence”. The DCLG said it expected the great majority of cases to be resolved by this point;
• appeal – offering the opportunity to appeal to an independent valuation tribunal.

Under the proposals the Valuation Office Agency will develop an online service which will allow customers to provide information and to track the progress of their check or challenge.

The DCLG said it would also introduce a new fee in the region of £100 to £300 for those looking to lodge an appeal. This is in line with fees charged in tax and other tribunals and would encourage settlements, it argued.

The Department noted that, currently, more than 850,000 appeals had been submitted against rating valuations for the 2010 Rating List – “around 70% of which result in no change to the rateable value and less than 2% proceed to a tribunal hearing”.

Local Government Minister Marcus Jones said: “The business rates appeals process has been in a decades-long deadlock, hampered by some unscrupulous agents making speculative appeals – sometimes for businesses unaware this is being done on their behalf.

“A key part of our long-term economic plan is to turn this around and streamline the system, which is why we’re proposing a straight-forward 3-stage process so people can check and challenge their valuations and be confident they’ll get a fair deal.”

The deadline for responses to the consultation, which can be viewed here, is 4 January 2016.

Once reforms have been agreed and subject to Parliamentary approval, they will be implemented using the extended enabling powers contained in the Enterprise Bill.

The Chancellor of the Exchequer recently announced that, by the end of the Parliament, local government will be able to retain 100% of local taxes, including all £26bn of revenue from business rates.

The Government also intends to abolish the Uniform Business Rate and give local authorities the power to cut business rates to boost enterprise and economic activity in their areas.

At the same time, the core grant from Whitehall will be phased out.