Even if the end of 2022 has not led to the official definition of a recession, many experts warn against breathing a sigh of relief. The Office for National Statistics (ONS) reported that there was indeed growth of 0.1% business
for November 2022 – which surprised many as the original forecast was for a 0.2% contraction. Recent months have shown that the strain of this surge in inflation will have a long-term impact on business owners and executives across the UK. And while 2022 hasn’t quite reached the official definition of a recession, some of the UK’s leading economists warn it’s still very likely by the end of the second quarter of 2023.
Inflation has impacted every industry and region in the country – from labor costs to supply chains, utilities and taxes. It will be a desperate struggle for entrepreneurs and executives to survive the winter. Budgets are tightening and companies are reluctant to pass on costs, but some have no choice.
The delayed publication of the preliminary rating list for 2023 did not help matters. Commercial property renters and owners are now scrambling to put together a budget that will not only get them through April, but beyond.
Do you know how to check your business rates?
Business Plans, or Non-Domestic Rates, is a tax levied on commercial real estate in lieu of council tax. This is determined by the taxable value of the property in question. Commercial property owners and renters can check through their account on the Valuation Office Agency (VOA) website or search for theirs Property.
“I cannot stress how important it is for commercial property owners and tenants to review their business rates.” Anthony Hughes, Managing Director of Business Rate Reduction Specialists RVA appraiser, said. “The re-rating is coming and once we are included in the new rating list, they will not be able to reclaim overpayments for the 2017-2022 rating list.”
While the multiplier (the number by which a property’s appraisable value is multiplied to determine business rates) may have been frozen for the 2023 appraisal list, it will still cause the Appraisable Value (RV) of some areas and industries to increase about will increase 30%
A brutal increase in business tax when companies have already suffered from high inflation for 40 years.
“I don’t think people realize the significant increase and how many problems that could pose,” admitted Anthony Hughes. “In the Autumn statement the Chancellor said it would not be above 1% but now the VOA says an overall increase in RV of 7.1% for England and Wales. In two months, the government’s official stance has risen by over 6%. Coupled with the multiplier remaining artificially high, this means that many will see a real increase of around 14%. This silent rise is creating false optimism in the business world. I would 100% recommend commercial property owners and tenants to consult a professional before it is too late.”
