Business Rates- New rateable values released
The Government has recently released the new rateable values of all 2.1 million non-domestic properties in the UK. Applicable from 1st April 2023, these new figures will endure for at least 5 years and there are some significant changes in liability across the property sectors.
Rateable values for industrial and warehouse properties have increased sharply within the Eastern region; average increases are a little over 18% and for the best located high specification buildings, increases of 30% are not uncommon.
In contrast, assessments applicable to many high street retail properties have declined. A good example being the Fenwick store on Colchester High Street which has seen its rateable value decrease from £1,010,000 RV to £590,000 RV, a welcome reduction of 41.5%. For more standard retail units in similar locations, reductions of 15-25% are commonplace.
Rating assessments in much of the leisure sector are assessed based upon turnover rather than property value and the impact of the revaluation has been surprisingly inconsistent. The trend is not all reducing levels of RV, by way of examples; Colchester Zoo, one of the most popular tourist attractions in East Anglia, has seen its assessment change from, £825,000 to £925,000, The Weston Homes Community Stadium has seen its current assessment of £113,000 increase to £153,000, whilst Wetherspoons on St Johns Street in Colchester has also seen an increase from £130,000 to £140,000 RV, which seems very contrary to expectations. A ‘winner’ is Colchester’s Mercury Theatre which has seen a worthwhile reduction from £120,000 to £96,000.