Small firms welcome business rate revaluation postponement

The Federation of Small Businesses (FSB) has welcomed the government’s decision to postpone the revaluation of business rates by a year.

The Ministry of Housing, Communities and Local Government announced yesterday (6 May) that it intends to move the revaluation, which was due to take place in 2021, back by 12 months to help reduce uncertainty for firms affected by coronavirus pandemic.

Legislation had been introduced to bring the next revaluation forward by one year from 2022 to 2021 but following the recent economic impacts of the coronavirus pandemic ministers want to ensure businesses have more certainty during this difficult time.

‘We have listened to businesses and their concerns about the timing of the 2021 business rates revaluation and have acted to end that uncertainty by postponing the change,’ said communities secretary, Robert Jenrick.

‘Now is the time for us to continue to focus on supporting businesses affected by the pandemic, including through our unprecedented package of almost £10bn in business rates relief.’

The move was welcomed by FSB national chairman Mike Cherry, who said it will ‘come as a relief to thousands of small business owners who are undergoing the toughest trading period they’ve ever seen’.

‘Small businesses will now be able to focus more of their funds on keeping their firms afloat and paying their employees,’ said Mr Cherry.

‘Every meaningful measure that can help the survival of small businesses is critical, and this move will help provide business owners with some certainty during these uncertain times.

‘Although welcome, this development does raise questions about a revaluation in 2022, based on values already three years out of date. Any near-future revaluation must recognise the turmoil we’ve been through,’ he added.

‘We also have concerns that this move could benefit cowboy rating surveyors who take a cut out of any “savings” businesses get – meaning another year of profits without any additional work. We urge businesses to report poor practice and continue our efforts to drive it out completely.’

Photo Credit – Free-Photos (Pixabay)