RICS Briefing Growth and Infrastructure Bill Committee Stage ...

The stated purpose of the revaluation “is to maintain fairness by ensuring rateable values are
ased upon up to date rental values”. The purpose of revaluations is to redistribute liability in
line with relative movements in property values since the previous revaluation. Delaying the
revaluation creates unfairness by requiring struggling businesses to subsidise those that have
fared relatively better.
Retail, particularly High Streets of the type targeted by the Portas Review and other
Government initiatives, is one of the sectors which has been hit hardest by the economic
downturn and would have benefited most from the 2015 revaluation (particularly outside of
London). Open market rents in many High Streets are substantially lower than those prevailing
in 2008.
With the significant fall in rental values of many High Streets, the 2015 Rating Revaluation
would have been expected to in turn significantly reduce retailers’ business rates bills. Rates
being kept at the current high levels will act as a deterrent to attracting investment back into
many town centres. Struggling businesses will in effect be penalised by excessive rates for a
further two years, subsidising relatively more prosperous businesses.
Clause 22 should be removed from the Growth & Infrastructure Bill. If, however, Parliament
wishes to postpone the 2015 revaluation, Clause 22 should be amended such that
revaluations following 2017 should be at intervals of ‘no more than 5 years’ rather than at
fixed 5 yearly intervals. This would allow a shorter revaluation cycle as suggested by Sir
Michael Lyons, without having to obtain primary legislation for such shorter period.
About RICS
RICS is the leading organisation of its kind in the world for professionals in property, construction, land
and related environmental issues. As an independent and chartered organisation, RICS regulates and
maintains the professional standards of over 91,000 qualified members (FRICS, MRICS and AssocRICS)
and over 50,000 trainee and student members. RICS has 22000 UK members in the Planning and
Development Group with 5000 also qualified as Building Surveyors. RICS regulates and promotes the
work of these property professionals throughout 146 countries and is governed by a Royal Charter
approved by Parliament which requires it to act in the public interest.
Mary Thorogood
Parliamentary Affairs Manager
T: 0207 334 3831
E: mthorogood@rics.org