REAL ESTATE
GOING RATES
Calculations – A major shakeup of the rates system will affect thousands of Teesside businesses .
Sanderson Weatherall ’ s Nick Vincent explains how changes to the Rateable Value of businesses could affect your bill
From April , the business rates revaluation will result in thousands of Teesside businesses seeing a change in the Rateable Values ( RV ) of their properties , and how much they therefore pay in business rates .
The new valuation list has been published and ratepayers can now view their 2023 business rates valuation . As with all previous revaluations , there are winners and losers .
Overall , retail properties have seen a decrease in RVs between the 2017 and 2023 rating lists , largely due to a shift in consumer behaviour from the traditional high street to online sales .
This change was accelerated by the Covid-19 pandemic and department stores will see reductions in RV of up to 45 per cent .
There are exceptions , with smaller retail units and convenience stores experiencing an increase in RV of around 10 per cent . Pubs and licensed restaurants , who have also suffered a fall in trade over the last three years , will on average see a fall in their RVs of 20 per cent .
Coupled with the promise of further retail / leisure relief in the 2023 ratings list , retail and leisure operators will generally see decreases in their rates liability from April 1 , 2023 , but that is not to say that the reduced RV is correct .
It will not come as a surprise to many that the RV of industrial properties will
Swings and roundabouts – Sanderson Weatherall ’ s Nick Vincent says there are winners and losers in the 2023 rating list .
increase from April 1,2023 , with logistics warehouses seeing the largest average increases of around 35 per cent .
This is due to the growth of the industrial market between 2015 and 2021 , bolstered by the switch of retail from the high street to online facilitating and the growth of companies such as Amazon . Specialist property classes such as football stadia and education will also increase in the 2023 rating list .
One piece of good news for ratepayers in the 2023 rating list is that there will be no downwards transition .
In previous rating lists , properties that saw large decreases in RV often did not see the actual monetary benefits of the reduction until years three or four of the rating list , due to transitional arrangements .
The removal of downwards phasing means that ratepayers will see the immediate benefit of a reduction in RV from April 1 , 2023 . The business rates multiplier has also been frozen at 0.512 ( 0.499 for small business ). Without this measure being implemented the business rates multiplier would have risen by around 10 per cent , in line with the Consumer Price Index ( CPI ).
For any queries or further information regarding your 2023 Business Rates Valuation , please contact one of SW ’ s experienced business rates team .
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