Retailers in regional cities to benefit from rate relief come April 2017
Rateable values in Bristol will decrease by as much as 44% yet Central London retailers could see increases of as much as 170%
Retailers in regions such as Bristol and Leeds will see their average rateable values decrease significantly in the 2017 business rates review, while retailers in London could see increases of as much as 170% – according to new research from CBRE.
The survey, which tracked the percentage rateable value movement from 2010 to 2017, has revealed that Bristol businesses will see a rateable value decrease of up to 44%, while Aberdeen, Leeds and Cardiff will see a similar average decrease of 30%.
This reduction in rateable value provides a good incentive for budding retail entrepreneurs to buy in these cities given the reduced occupancy costs. However, the decrease will not be felt across the board.
CBRE estimates that values in London areas such as Mount Street could rise by as much as 170% – and by 50% in Oxford Street West – while businesses in Birmingham and Liverpool will see rateable value increases of around 9% and 1% respectively.
The 2017 business rates reviews was announced by former chancellor George Osborne in the 2016 budget and will see business rates relief double from April 2017.
Rateable value decrease
- Bristol -44%
- Leeds -34%
- Aberdeen -33%
- Newcastle -27%
- Reading -22%
- Cambridge -21%
- Southampton -18%
- Manchester -10%
- Edinburgh -5%
- Glasgow -3%
Rateable value increase
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- Mount Street (London) 170%
- Brompton Road and Knightsbridge (London) 52%
- Oxford Street West (London) 50%
- Oxford Street East (London) 20%
- Birmingham 9%
- Liverpool 1%
Tim Attridge, senior director, rating at CBRE, said:
“With the cumulative rateable value set to fall across the UK, the government will be seeking to maintain the level of tax generated by the business rates system. Therefore, the multiplier will be higher than we’ve ever seen immediately after a revaluation. Retailers should be aware of what the potential changes might be, and the impact on their business.
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