The push comes in the run up to the arrival of this year’s business rates bills. Following a record rates bill hike of 5.6% in 2012, this year’s rates bills are set to go up by an average of 2.6%. CVS said bills are expected to start landing on businesses’ doormats within the next six weeks.
It added that compounding the problem is the complex business rates collection and appeal system. CVS estimates that it takes an average of 11 months for businesses to go through the appeals process.
In November, the Publican’s Morning Advertiser revealed that 5,890 licensees were still awaiting the outcome of their 2010 business rates appeals, with an estimated refund expected of £32,000 per successful case.
In the same month, CVS wrote to pubs minister Brandon Lewis, calling the rates system “unsustainable” and the framework “unhelpful” for businesses. It came after the Government’s decision to push back business rates revaluations by two years.
CVS chairman of rating Don Baker said: “Without the prompt return of money owed and because of the slow rates appeals process, businesses’ cash flows will be under significant strain. All at a time when the overall economic conditions are making successful trading severely challenging for many businesses, and SMEs (small & medium enterprises) in particular.
“We are urging the Government to address the failings of the business rates system and to put itself on the side of business. A rate rise freeze would help, but more fundamental is improving the payment and appeals process so occupiers can recover money owed to them via a transparent, fast and effective appeal system if they’re being over-charged.”