London Property Alliance Chief Economist Alexander Jan has responded to the government’s consultation on transitional arrangements associated with the business rates revaluation process for 2023. In the submission, London Property Alliance states that the business rates system is no longer fit for purpose in its current state, and is in need of urgent reform. To allow this to happen the London Property Alliance expresses a preference for upwards transitional relief over a longer period of time.
“A move towards annual revaluation would help to reduce the scale and impact of transitional relief arrangements and make business rates more reflective of market conditions. We agree with the submission of others such as New West End Company which states that a system based on notional rental values, is no longer fit for purpose. We agree that an increase in short-term leases in some sectors such as retail and the increasing use of turnover rather than (just) premises values should be incorporated into the Valuation Office Agency’s revaluation model.”Read the full response