Next year, rental rates for businesses located in several UK cities are set to increase. This revaluation of rental property is a customary update based on the Valuation Office Agency’s interpretation of the rental value of a city’s property. The 2017 increase will be based off of 2015 numbers.
These increases have caused complaints from small businesses that, in some cases, will see rates raise as much as 415%. Cities with the largest increases include London, Brighton, Winchester and Oxford to name a few. The government is defending these changes arguing that “it is cutting business rates and that the system needed to be updated. It also says three-quarters of businesses will see no change and that 600,000 companies will have the rates cut completely.”
Unfortunately no one can be sure which side is right until next year. Many businesses are not taking these increases to heart yet which may cause high turnover and failure. For those who are planning for the increases, costs for services and products are being raised which will in turn make them less competitive.