Environment Secretary Nicholas Ridley has acted with unusual alacrity to minimise the potentially significant changes in rating law which could come about following the House of Lords decision in the case of Clement (Vo) v Addis Ltd. (The case was reported in full in last week’s issue at p 129 and a detailed commentary by Dennis Mabey of Gooch & Wagstaff will be found on p24 of this issue.)
In essence the judgment enabled ratepayers to benefit from a rate reduction because the creation of an enterprise zone nearby had reduced the rental value of their property.
The Valuation Office had argued that such matters — which, widely interpreted, would have far-reaching effects — could not be taken into account.
Now Mr Ridley is proposing amendments to the Local Government Finance Bill so that, with effect from midnight on March 9, proposals to amend current rateable values will be determined according to the law as it was understood prior to Addis. This means that changes will be taken into account only in so far as they relate to the physical state of the hereditament and its locality. The Environment Secretary indicated, however, that changes in economic factors will be taken into account in the 1990 and subsequent revaluations.
Proposals already made will be decided, where relevant, in the light of the law as decided by the House of Lords in Addis.
