#business-rates

#business-rates

The combined impact of disproportionate, inappropriate, and unjustified rises in the Valuations Office Agency's valuation of properties, and an increased Business Rates multiplier for large event venues, will undermine many of this Government's own priorities. The resulting tax increase for operators completely outweighs any benefits of the transitional relief and lower tax multipliers for lower value properties announced, and will significantly worsen in the years ahead.

Wage rises, holiday taxes and monumental increases in rateable values have put even further pressure on hospitality businesses, as a result of this Budget. A 5p business rates discount is simply not enough to offset these costs and redress the damage it will do to business viability and job opportunities. This is exactly why we called for the government to use the maximum possible discount it had the power to implement, which could have genuinely delivered lower business rates.

New analysis from global tax firm Ryan shows that almost all major arenas have seen valuations surge, in several cases more than doubling, with Wembley Arena's assessment rocketing by 300%. The spike reflects a return to packed schedules and booming post-pandemic demand for live music and events. Alex Probyn, Practice Leader for Europe & Asia-Pacific Property Tax at Ryan, said the scale of the rises is the direct result of how arenas are valued.

Global tax firm Ryan's analysis of Valuation Office Agency (VOA) data found that the rateable values of stadiums across the top five English divisions have jumped by 25% to 111.74 million. In the Budget last week, the Government confirmed that new business rates payments for commercial properties would be based on valuations made in 2024 and a new reduced multiplier to calculate their overall bills.

"I'm angry, I'm really really angry now," Luke Honeychurch told me. We're standing in his beautiful Cotswolds stone pub, The Hog at Horsley. It is known for its well-kept local ales, from Stroud Brewery and good bar banter. But the landlord now has an alter ego on social media, "The Grumpy Landlord". Mr Honeychurch launched it after he discovered how much his business rates will rise. "At the moment we pay around 100 a month," he explained.

Following Rachel Reeves Autumn Budget, the self-storage company Big Yellow has warned their annual business rates will now soar by £1.8 million. The self-storage company said the Chancellor's up-coming tax hikes will see properties valued at more than £500,000 will be hit with higher taxes which will affect 27 of their stores. Big Yellow has a total of 111 locations in England, Scotland and Wales and from the next financial year the new business rates will start.

Reeves told MPs she would introduce "lowest tax rates since 1991" for the high street using "tax rates" in the plural but only one of the new multipliers is even close to the level seen in 1991 which will apply to only the smallest properties with much higher effective tax rates for the rest of the high street. The Chancellor's comparison hinges on the new 38.2p multiplier for Retail, Hospitality and Leisure (RHL) properties with a rateable value between £12,000 and £51,000.

According to Colliers the biggest winners from the list were film studios who saw their RVs reduce by 26.7% and who will also still receive reliefs, which have been extended to 2034. The biggest "losers" seeing steep RV rises appear to be the Civil airports whose RVs have increased by 295% in the new list, closely followed by Royal Palaces who saw increases of 201% , although these increases will be capped by transitional relief.

Chancellor Rachel Reeves' assertion that the Autumn Budget delivers the "lowest tax rates since 1991" for more than 750,000 retail, hospitality and leisure properties has been called into question after detailed analysis revealed that most high-street premises will in fact face significantly higher business-rates multipliers next year. Reeves told MPs that she was introducing the lowest tax rates in over three decades, using the phrase "tax rates" in the plural.

While overall footfall fell for the sixth consecutive month, there was some good news on High Streets, which saw positive shopper traffic after a disappointing September. With consumer confidence remaining weak ahead of the possibility of a tax-raising Budget, many households have stayed away from shopping centres and retail parks. However, a Friday Halloween brought some welcome relief, delivering a late-month boost for retailers.

New analysis by leading property data provider, Search Acumen, shows that 16,780 properties across England above the rateable value of £500,000 will be affected by an increase to business rates if Chancellor Rachel Reeves goes through with planned reforms, having a material impact on occupiers and investors. The analysis indicates that business rates increasing will disproportionally impact London, with almost two-fifths (37%) of properties liable based in the Capital alone. The 6,100 premises have a rateable value of £9bn nearly half of the overall collective value of rateable properties above the £500,000 threshold.

cliff edges

The health of high streets across the country has varied significantly, with areas like Bradford, Newport, and Blackpool showing double the empty shops compared to London.