While retailers nationwide face an increase of 16% in their rates, office space occupants are breathing a sigh of relief at a predicted rise of just 3.1% in April 2010.
The rateable value of business premises is reassessed every five years. The new bills for office space, retail and industrial premises are based on rental values as of the 1st April 2008.
Retailers are facing a massive hike as a result of the large long-term increase in the value of retail property, which has gone up by more than 20% since 2003.
Office space rent has risen by just 7.5% in that time.
Blake Penfold head of rating at GL Hearn, called on occupiers to lobby the government over the increases: ‘If you don’t, the government will assume that this tax is vote-free and they can carry on manipulating it as they like.’
Office space and retail occupants face yet another blow in April 2010 when councils will be able to charge a new business rates supplement of 2p in the pound to pay for infrastructure.