Business rates values set to rise by nearly 5%

The Valuation Office Agency has published its draft rating list, which will determine business rates bills for April 2017.

Rateable values for the retail sector will rise by an average of 4.7%, although this is set to be balanced by a reduction in small businesses’ rates multipliers.

Bills for the majority of retailers outside of London will be reduced.

Although many small stores will benefit from the new figures, industry experts have called for an overhauled system.

Melanie Leech, chief executive of the British Property Federation, said there was a “pressing need” for more frequent revaluations. “The fact that businesses are currently paying rates based on property values from eight years ago is ridiculous,” she said.

The draft figures also revealed that the ‘Big Four’ supermarkets could receive a £173m reduction in rates on larger stores.

Superstores in England and Wales will see an average rates decrease of 5.9% – around £79,368 per year.

Last month, Retail Express reported that the Government’s decision to hand over business rates power will mean councils could approve more supermarket planning applications, ramping up competition for small stores.