On the 31st March 2009 the Government announced a rate deferral payment scheme for commercial occupiers in England and Wales. It was designed to answer the complaints made by the British Retail Consortium and in particular Philip Green, on the financial pressures retail businesses are currently facing. The announcement was dramatic and without precedent; symptomatic of a Government fire fighting inconvenient headlines in the hope a recovery will happen.

Given the insignificant effect this will have, It will be interesting to see whether anyone will be bothered to take up this deferment option.

The valuation date of the 2010 Revaluation is the 1st April 2008. Uncannily, this marks the high point in rents for the commercial property market and was before the ‘Credit Crunch’ started to affect the economy in Q3 of 2008. So with rents expected to fall for the next few years, this will mean that a large proportion of the UK’s 1.

6 million commercial occupiers will have a business rates burden that will be beyond all previous records. Secondly, not only did the 1st April 2008 mark the high point in the rental market but it was also the same the day that empty rates became payable at the new increased levels on an unoccupied premises.

Fortunately, the existing legislation ensures that a Government cannot raise additional tax as a result of a Revaluation. However, there will be other pressures. We expect to see more of the ‘rate burden’ being shifted from the Home Counties to the Midlands and the North West. Whether this is acceptable to a Labour Government remains to be seen?

What can you do to ensure you keep your business rates down?

Your business rate liability may well be one of the most significant costs to your company. You only have one chance to appeal against the assessment and therefore it is imperative to gain advice from experienced professionals. BMH have all the necessary expertise to help you.

For further information, please contact John-Paul McGrath (mcgrath@bmh.co.uk) on 01753 747420