BUDGET 2016: More frequent revaluations and move from RPI to CPI is a step in the right direction for business rates

16 Mar 2016

Policy area: Tax & Finance

Melanie Leech, chief executive of the British Property Federation, comments on the Government’s decision to change the business rates multiplier from RPI to CPI, announced in today’s Budget: “We have campaigned for a long time for the business rates multiplier to be calculated by reference to CPI, which is a much better indicator of commercial property rental growth than the now-discredited RPI. This move, coupled with an improved appeals regime, should go some way to making business rate fairer.

“We also welcome the suggestion of more frequent business rates revaluations, which we have long advocated. Frequent revaluations maintain fairness for ratepayers, who should expect to be taxed in proportion to the economic benefit that they derive from their property. We are glad that it looks like the government is finally taking this recommendation on board.”

ENDS