Calls for a common sense policy on rates control

As the Department for Communities and Local Government announces the new Uniform Business Rate (UBR) for 2007/08 - a key factor in the calculation of a business’s rates bill - local commercial property specialist Underwoods calls for a common sense policy for rates control.

Andrew Boulter, Head of Rating and a Partner at Underwoods, says: “The local council works out a business’s rates bill by multiplying the rateable value of a property, as assessed by the Valuation Office, by the UBR - set by the Government each year.”

The new UBR for 2007/08 has been set at 44.4p with the Small Business UBR at 44.1p. This is an increase of 1.1p and 1.6p respectively from 2006/07 in line with inflation.

He continues: “The imposition of the Centralised Uniform Business Rate underlines the fact that business rates as presently constituted are a form of national taxation. Local Councils merely act as a collection agency for Central Government.”

“This country will not have effective Local Government until tax raising powers are once again vested in Local Authorities. Only then will Local Councils be empowered to make a difference in their communities through a process of local democracy. The ability to have a real impact would attract more people of calibre and energy into Local Government and enable Councils to deal with pressing local issues in a way they are not able to do at present.”

With its knowledge of the local market, Underwoods is well equipped to comprehensively advise businesses on rating issues.