Hampshire: UBCUK blasts business rates proposals
UBCUK, a provider of flexible serviced offices in Hampshire, has written to local MPs, Ranil Jayawardena (Fleet) and Royston Smith (Southampton), urging parliament to take action to force the Government to abandon “unfair” changes to the business rates appeals system that could leave businesses over-paying tax by 10% or more for several years.
Proposals brought forward in a government consultation paper change the rules for businesses appealing a decision on their business rates liabilities. The change effectively means that the body that determines appeals on business rates valuations, the Valuation Tribunals for England (VTE), is able to order a change only when the Valuation Office Agency has been deemed to be unprofessional.
This significantly narrows the chances of businesses having their business-rates liability reduced at appeal.
Leading trade associations, including the Business Centre Association, have warned the proposals will cause individual businesses to sink into hardship, pushing those already struggling into insolvency; undermine businesses’ confidence that their rates valuations are correct, which is one of the Government’s main aims in reforming rates appeals; and limit the perceived independence of the VTE.
Tom Mulvaney, managing director at UBCUK, said: “As a provider of flexible office space to scores of SMEs and large businesses in Fleet and Southampton, we are concerned that the proposed reforms will result in an increase in business rates liability by stealth. We already face some of the highest level of business rates in the world and the introduction of the regulations will make the situation much, much worse.
