Changes to the business rates appeals system have come under fire for being “unjust” in a letter signed by trade bodies including the British Property Federation and Revo.
Proposals put forward in a Department for Communities and Local Government consultation say that the Valuation Tribunal for England will only be able to order a change to business rates liabilities when it believes they are inaccurate “outside the bounds of reasonable professional judgment”.
A letter to communities secretary Sajid Javid said this would be difficult to determine and could push struggling businesses to insolvency.
It also warned the changes, due to be announced on Friday, could undermine businesses’ confidence that their rates valuations are correct.
Ian Fletcher, director of finance policy at the BPF, said: “It is hard to see how these proposals improve our broken business rates appeals system.
“They will undermine ratepayer confidence and compound the already high burden of business rates. Not only do businesses and jobs suffer as a result, but the more money that is spent on business rates, the less that is available for property owners to invest in improving our towns and cities.”
According to OECD data, the UK has the highest level of property, as a proportion of GDP, of any major developed economy.
Ed Cooke, chief executive of Revo, formerly BCSC, called it a “manifestly unjust” proposal that “shows no indication of a desire to work in partnership with the private sector to create a more transparent and efficient tax system”.
Cooke added that small businesses would have the most to lose from the changes.
From August: New rules to ‘outlaw’ business rates appeals
From September: Retailers’ business rates set to fall
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