The Government has recently issued its first results of the 2010 Rating Revaluation in England together with its proposals for transitional arrangements for phasing in rates increases and decreases for the 2010 Rating List. It is consulting on a £2 billion relief scheme, which it says is to support the minority of businesses whose rates could increase as a result of the Revaluation. However, its figures predict that 60% of businesses will see a reduction in rates next year. Its figures suggest that High Street retailers will be largely unaffected by the Revaluation, with shops generally having 1% reduction in rates, although supermarkets are likely to see increases of around 12%. The Government predicts that the industry and manufacturing sector are likely to see falls in rates bills of 3%.

For the South West, which includes Swindon and Wiltshire, the Government's predictions are as follows:-

The business rates deferral scheme for 2009/10 also came into effect on 31^st July, enabling ratepayers to defer payment on 2009/10 rates bills, which were due to increase by 5 pence in the pound, but which now enables ratepayers to defer to payment on 3 pence of the 5 pence increase and carry forward that payment over the next two years. A 27 page administrative guidance booklet is available to help companies and local authorities manage the administrative complications and red tape, as ratepayers have to apply for the deferment.

Andrew Kilpatrick BSc FRICS ACIArb IRRV of Thompsons says, “The only benefit of this scheme is from a cash flow point of view, as the 5% increase in uniform business rates for 2009/10 still has to be paid in full in due course. The scheme adds yet more bureaucratic red tape, cost and complication to an already complicated system and pays lip service to help for ratepayers, without providing real help to businesses hard pressed by the recession.”

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