Press Releases

• BPF argues that ratepayers whose rents have fallen significantly should immediately pay lower business rates, as downward phasing is unfair and economically damaging
• Given sharp rises in logistics values since the last revaluation, an increase in business rates should be phased in for these occupiers
• Once three-yearly revaluations are in place transitional relief should be abolished entirely to enable market forces to operate effectively
  
  

In its response to a consultation on transitional arrangements for 2023 business rates revaluation, the British Property Federation (“BPF”) urges the Government to end downward phasing and for businesses whose rateable values have fallen to see these immediately reflected in full through lower rates bills. This would particularly help high street property in many of the areas that the Government wishes to “level up”.

Transitional relief is the mechanism by which changes to business rates are phased in gradually. Currently this applies to ratepayers who see their bill increase or decrease. The BPF argues that the effect of downward phasing can make occupying property, particularly in retail, uneconomical due to business rates not reflecting current rental values.

In its submission to the Department for Levelling-Up, Housing and Communities the BPF calls for a new transitional relief format that has been developed in collaboration with the Shopkeepers’ Campaign:

• Properties that see an increase in their rateable value would have this phased in over two years, with increases capped for year one.
• Downward phasing should be scrapped entirely, with any ratepayer whose rateable value decreases paying the new liability immediately.
• Upward phasing to be centrally funded by Government.
  
  

Ion Fletcher, Director of Policy, British Property Federation, comments, “Downwards phasing has left retail properties overpaying business rates for years, with businesses in regions the Government is seeking to ‘level-up’ among the most impacted. Abolishing it is a short-term but essential fix that would immediately help high street businesses.”