Property Type
Property Location
Minimum Area
Maximum Area

Register with us

register your property interests with us.


Business Rates 2023

Published on Monday, 27 March 2023

Businesspeople hoping for a revision of business rates were disappointed following today’s budget announcement (Wednesday 15 March).


The largely contested and arguably outdated business rates model, based on rent values, remains intact.


Prime Minister Rishi Sunak froze business rates in 2021 when he was chancellor until next month (April) when new rates, recalculated for the first time since 2017, come into force.


Whilst business people welcomed news that the economy is in a slightly better place than expected since the UK avoided falling into a recession UK to avoid recession this year but outlook still weak, BCC says | Reuters , business rates remain a bone of contention.


The Office of National Statistics reported a growth of 0.3% in the economy in January after a fall of 0.5% in December last year UK economy latest - Office for National Statistics ( .


The Autumn Statement (November 2022) Autumn Statement 2022: Business Rates Factsheet - GOV.UK ( saw some welcome measures introduced. Rateable values to immediately reflect falls in rents, for example, whilst some relief for High Street retailers is expected since rents have fallen an average of 10% since 2017 Colliers | Why we still need to keep Business Rates High on the Government’s agenda when values were based on 2015 rents. In addition, industrial and distribution businesses are likely to be looking at a higher business rate bill thereby spreading the tax burden more evenly. However, the fundamental unfairness of the rates system remains.


One of the current challenges is the fact that the new revaluation is based on rents in 2021 when the effects of the pandemic were in full swing, some businesses were closed and many had struck deals with landlords. This in itself could open the floodgates of appeals. However, Colliers reports those who queried their valuations early have been far more successful in fixing a more realistic value for their premises. Colliers also highlights the cumbersome and relatively untransparent appeals system with those businesses not well represented more likely to come off worse effectively creating a two-tier business rates system.


It has been estimated that average rental values have increased by 5% between 2015 and 2021 2023 Rating Revaluation | LSH yet retail values have fallen by 15% with values of industrial premises having increased by 25% reflecting the growth of the distribution and logistics sector fuelled by consumer demand for online retail itself further accelerated by the pandemic.


As a result of this rebalancing between industrial and retail, it may sound as though a fairer business rates system is now operating. However, in outlining a series of reforms which it is calling on the government to address, Colliers’ head of business rates John Webber highlights the expected overall 7.1% increase in rateable value this year. Webber’s analysis also draws attention to the Office of Budget Responsibility (OBR) report that shows government income from business rates will increase to almost £36 billion by 2027/28 from £28.5 billion in 2022/23 in complete contradiction to its 2019 manifesto pledge to cut the burden of tax on businesses by reducing business rates with a ‘fundamental review of the system’.


Businesses requiring assistance with its business rates valuation can contact Bonsors for professional advice.




About Bonsors

Bonsors are Chartered Surveyors and commercial property agents dealing with all aspects of commercial property in South West and West London, Surrey and Middlesex

Contact Us

  • Warwick Lodge
  • 75-77 Old London Rd
  • Kingston upon Thames
  • KT2 6ND
  • T: +44 (0) 20 8546 0022
  • E:


Copyright © 2024 Bonsors            Sitemap     XML Sitemap     Terms & Conditions     Cookies Policy     Designed & powered by APCRM
This site uses cookies for analysis purposes only. This helps us understand how you and other visitors use our site. To see a complete list of these cookies or to opt out please access our cookie policy page.

You will see this message only once, but you will be able to find more information about our use of cookies or opt out at any time.