By Philip M Bowe, BIV Bowes
I know we’ve just had April Fools’ Day, and I like a laugh at least as much as anyone else, but some April Fools’ tricks are mean and nasty. And I feel Rachel Reeves is playing several on the British economy.
As regular readers of my column will know, I do have strong opinions on many subjects (a friend calls them my ‘Rants’), but I try to balance my views with an argument for the other side to show that I do understand there is an alternative point of view to most arguments. But there comes a time when we all have to stand up for what we believe is right without excuses.
We are about to see swathes of the property and business markets decimated by the latest proposals from Rachel Reeves and our fine Government. I won’t dwell on the effect on the Private Rented Sector that the new Renters Right Act is already having and is only going to get worse (for both landlords and tenants) but I will talk about business rates.
Business rates are supposed to be set at a level that reflect market rent for a premises; the official definition by the Valuation Office Agency (the part of HMRC that does the work) as “The estimated annual rent a non-domestic property could have been let for on the open market at a fixed valuation date, assuming certain standard conditions.”
The previous administration gave some quite generous subsidies during and following the covid situation to businesses, particularly in the Retail, Hospitality and Leisure sectors. However, publicans and restaurateurs in particular are seeing their Rateable Values not just increase in the latest list, but skyrocket. I do have some clients who are looking at relatively nominal increases – but from a falsely high, 2023 figure. Many others are seeing already incorrect figures being exploded into totally unfeasible figures.
If Rateable Value is supposed to reflect Market Rent, how do the Government and the Valuation Office Agency justify an increase for one of my clients from RV £125,0000 to £242,000? And in another case, between 2023 and 2026 an increase in the RV at their restaurant from £40,250 to £41,750 – which doesn’t seem too bad, until one realises that the 2017 figure was only £11,750.
This madness must stop or even more pubs and restaurants will go to the wall.
The trade is already hard enough with less people eating out and increased overheads from raw goods to staff costs and energy costs and it seems that this Government and the Valuation Office Agency mandarins are working in tandem in a coffin factory for much of British business.
Can somebody please explain to me (and my clients) the fairness of this? I’ll give a reward for anybody who can give me a reasoned argument for these mental increases.
As I said at the beginning of this article, I normally try to be balanced in my arguments and look at the other side – but here I’m afraid I just can’t see it.
Final thought…
We have a new logo, see opposite! What do you all make of it?
www.bivbowes.uk