22 Nov 22 by Jordan Kennedy
Draft 2023 Rating List
The long-awaited Draft 2023 Rating List has been published and has shown an increase in the total rateable value of commercial premises in England and Wales. Vickery Holman had predicted the retail sector would benefit from the revaluation, whilst the industrial sector would bear the brunt of the increase in rateable values; these predictions have been proven correct with retail rateable values reducing by 10% and industrial rateable values increasing by 27.1%. nationally. Rateable values within the office sector have increased by 10.2%, whilst rateable values falling outside these three main categories have increased by 4.2% overall. The all sector increase in rateable values totals 7.1%.
In the South-West, the total number of rateable properties has remained the same, whilst the total rateable value has increased from £1,769,425 to £1,874,114. This equates to a 9.5% increase in rateable values across all sectors in the South-West of England. Retail rateable values have reduced by 4.7% across the region and industrial rateable values have increased by 27%. We have seen the total rateable value within the office sector increase by 14% in the region, whilst rateable values falling outside these main three categories have increased by 5.9% overall. Evidently, rateable values in the retail sector have fallen less in the South-West than they have nationally, whilst increases in the office and other sectors – including leisure and hospitality – have been higher than the national average.
From 1 April 2023, most businesses will therefore be facing new business rates bills and the government has committed to taking a number of steps to help ratepayers, as follows:
- The business rates multiplier has been frozen for another year to protect businesses from rising inflation
- There will be an extended and increased Retail, Hospitality and Leisure relief scheme, increasing from 50% to 75% for 2023-2024
- Transitional relief will be reformed – all business seeing lower bills as a result of the revaluation will benefit from the decrease straight away, whilst those seeing higher bills with have their increases capped
- Small businesses who lose their eligibility for either Small Business or Rural Rate Relief due to new property valuations will be supported through a more generous Supporting Small Business scheme worth over £500 million
Ratepayers in England can now see the future rateable value for their property and get an estimate of what their business rates bill may be from 1 April 2023 through the Find a Business Rates Valuation Service: https://www.gov.uk/find-business-rates