The Benefits of Reducing Your Business Rates

Improved Cashflow for Businesses:

  • Lower Operating Costs: Reduced business rates lower the fixed costs that businesses have to pay, freeing up capital that can be reinvested into the business. This is especially beneficial for small and medium-sized enterprises (SMEs), which often operate with tighter margins.
  • Enhanced Liquidity: More available cash allows businesses to better manage their day-to-day operations, pay down debt, or invest in growth opportunities such as hiring, marketing, or expanding their product lines.

Increased Competitiveness:

  • Lower Prices: Businesses with reduced costs can offer more competitive pricing, which can increase their market share.
  • Investment in Innovation: Savings from lower rates can be directed toward innovation, improving products and services, and maintaining a competitive edge in the market.

Support for Struggling Sectors:

  • Retail and Hospitality: These sectors, which often have high property costs, can benefit significantly from reduced rates, helping them to survive and thrive, especially during economic downturns or in the face of rising online competition.
  • Stimulating Local Economies: Lower rates can help to sustain businesses in areas that might otherwise face high vacancy rates, supporting local employment and the wider community.

Encouragement for Business Growth:

  • Expansion Opportunities: Businesses may use the savings to expand their physical presence, opening new locations or investing in larger premises, which can lead to job creation and economic growth.
  • Encouraging Startups: Lower rates can reduce the barriers to entry for new businesses, fostering entrepreneurship and innovation.

Support for Property Development:

  • Incentivizing Development: Lower business rates can make it more financially viable to develop commercial properties, leading to urban regeneration and the improvement of local infrastructure.
  • Reducing Vacancy Rates: With reduced rates, property owners may be more willing to lease out spaces at competitive rents, lowering commercial vacancy rates and revitalizing town centers.

Economic Stability and Growth:

  • Cushioning Economic Downturns: During periods of economic uncertainty, reduced business rates can help stabilize businesses, preventing closures and job losses.
  • Long-Term Investment: By improving business viability, rate reductions can contribute to sustained economic growth, increasing tax revenues in other areas over the long term.

Increased Employment:

  • Job Creation: The savings from lower business rates can be reinvested into the workforce, either through hiring more staff or increasing wages, which can have a positive impact on local employment levels.

Fairer Taxation:

  • Support for Equity: Business rates are often seen as regressive, disproportionately impacting smaller businesses. Reductions can help address this imbalance, creating a fairer tax environment that supports small businesses and startups.

Overall, a reduction in business rates can provide immediate financial relief, support long-term growth, and contribute to a more dynamic and resilient economy.

Business Rates Increase

The increase in business rates, also known as business rates valuation or revaluation, refers to the periodic reassessment of the rateable value of non-residential properties used for commercial purposes. This reassessment is conducted by government authorities to ensure that business rates reflect the current rental value of properties and to distribute the tax burden fairly among businesses.

There are several reasons why an increase in business rates warrants closer inspection of a property:

  • 1. Financial Impact: An increase in business rates directly affects a business's operating costs. Higher rates mean increased expenses, which can impact profitability, especially for small or struggling businesses. Therefore, it is crucial for businesses to understand the reasons behind the rate increase and assess its financial implications.
  • 2. Property Assessment Accuracy: Business rates are based on the rateable value of a property, which is determined by factors such as location, size, condition, and intended use. Mistakes or inaccuracies in the property assessment can lead to unjustified rate increases. Conducting a closer inspection of the property allows businesses to verify the accuracy of the assessment and identify any discrepancies that may warrant an appeal or challenge.
  • 3. Market Changes: Changes in the local property market, such as fluctuations in rental values or shifts in demand, can influence business rates. If the property's rateable value has increased due to market changes, businesses need to assess whether the increase reflects the property's true value or if there are mitigating factors that could justify a reassessment.
  • 4. Property Modifications: Any alterations, improvements, or changes in the use of a property can impact its rateable value and, consequently, its business rates. Businesses should inspect the property to determine if recent renovations, expansions, or changes in occupancy have been accurately reflected in the valuation.
  • 5. Appeal Opportunities: In cases where businesses believe that the increase in business rates is unjustified or incorrect, they have the right to appeal the valuation. A closer inspection of the property can help businesses gather evidence to support their appeal, such as comparable rental values, property condition assessments, or documentation of changes that may affect the valuation.

In summary, an increase in business rates warrants a closer inspection of the property to ensure accuracy, assess financial implications, identify potential appeal opportunities, and understand the reasons behind the rate increase. By conducting a thorough examination, businesses can make informed decisions and take appropriate actions to manage their tax liabilities effectively.

    When it comes to the Business rates industry there are three things we honour:

      blurry background: white/grey

      Honesty

      It should be obvious, but when it comes to a lot of Companies in this Industry this seems to be ignored, I can only speak from my experience.

      Communication

      This comes down to the communication between us and the client, the last thing you want is to be chasing your consultant for weeks to get an update.

      Reductions

      This is a very vital factor, as it is our Job! It comes down to the fact I can only speak from experience, companies will pursue an appeal even without the evidence of a reduction due to the upfront fees people are taking, the way we work is, no evidence no case it’s that simple.

      Contact

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