The Government would like you to believe that the cancellation of the 2015 Business Rates revaluation was to help Business… regretfully that is far from the truth!
Due to the recession many businesses, particularly shops and industrial premises would have gained significantly from a Business Rates revaluation. This is because rental levels which determine your rateable value have plummeted between 2008 and 2013 (respective valuation dates), in some areas by as much as 50%!
The problem the Government faced was that they have to bring in the same amount of revenue whatever the rateable values are. If the rateable Value pie drops by 30% then the rate in the pound will need to rise by 30%.
This would have been extremely unpopular especially in areas such as the South East and London where rents have not fallen as much as other areas of the country. It would have resulted in these areas taking on a bigger slice of the Business Rates pie while other areas would have seen their liabilities fall.
You might be wondering, what is wrong with that?
Well most big business is concentrated in the South East and they have the ear of the Government, furthermore the South East is predominantly Conservative.
“I have briefed the director of the huge savings and excellent work you have given us!”