Welsh retailers face rates appeal ‘disaster’

The Welsh Government’s planned reforms for business rate will make it “virtually impossible” for wrongly charged retailers to get a fair deal, according to a leading rates appeals company.

According to Colliers International, the Welsh Government’s current consultation may lead to a system similar to the Check Challenge Appeal process in place in England, but with “additional flaws.”

The CCA system has been damned by the ACS, FSB, CVS, NFRN and retailers trying to appeal as being unfit for service, suffering a year backlog, crashing frequently and being too complex for many business owners.

The “additional flaws” include proposals by the Welsh Government to limit the backdating of appeals claims where a retailer has been found to be overpaying to the date the appeal was lodged. Despite the backdating cap on those found to be overpaying, the Welsh Government is not planning on capping additional payments asked of retailers found to be underpaying.

Head of business rating at Colliers International John Webber commented on the government’s plans stating: “One wonders if the true motive is helping businesses or just making its own life easier by making it virtually impossible to appeal against an unfair valuation.”

The Welsh Government previously said it had no intention to “simply adopt” the English CCA system. Speaking at the opening of the consultation Welsh Local Government Secretary Mark Drakeford said: ““It is important that ratepayers are paying the right amount of rates and, if this is not the case, that corrections are made as quickly as possible. 

“It is equally important that every ratepayer acts responsibly in using the appeals system.”

Colliers said it would be taking part in the consultation and urged retailers to do the same. It also outline five points the Welsh Government should adopt in order to build an appeals process that is fair for retailers.

• To make revaluations at most every three years instead of the current five
• Give the Valuation Office Agency additional funding to clear the appeals case backlog
• Shield the VOA from pressure from local councils and HMRC
• Introduce a register of appeals professionals
• “Root and branch” reform of current business rates exemptions and reliefs.

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