Independent Chartered Surveyors &
Commercial Property Agency

Regulated by RICS

Chancellor announces changes to Business Rates system

Written by: Andrew Idle

07/10/2015 15:13

Not all business ratepayers will be aware that the rates they pay do not go directly to their local Council but are collected by Whitehall, via the Council, and then re-distributed to the Council by Whitehall civil servants. This does seem a very bureaucratic procedure which is probably wasteful of resources.

Now the Chancellor has announced that he is giving more control back to Council whom in some cases (e.g. those such as Sheffield with an elected Mayor) will be able to fix their own rates in the £ as well as collecting this tax without central Government input.

At present, the rates in the £ is standardised across the whole of England, in what is known as the Uniform Business Rate. This is all part of the move towards devolution for the Regions.

At present, in the Yorkshire Region, there is no consensus on devolved powers generally, as to which Cities and Towns would join together and how it would be administered. Readers will recall the Prime Minister made a joke of this recently, suggesting that the Yorkshire psyche is such that we hate each other as well as hating those outside the Region!

But the concept of money being spent by those who know where it is needed and having the buying skills to manage it prudently and not frittering it away must be good for local ratepayers.

Andrew Idle