New Appeals Process Fails to Attract Disputes
- New ‘check challenge appeal’ (CCA) system for business rates appeals is proving complicated and difficult to navigate
- Only 65,380 businesses have disputed their assessments in the past 21 months
- Less than 4% of properties assessed for business rates have begun the check stage
- Cost of business rates appeals estimated at £1.1bn for 2019/20, down from £1.2bn in 2018/19
- Councils in England expected to collect £25bn in business rates in April 2019/20
- Lack of guidance and unnavigable online portal discourages businesses from challenging their bills
The new ‘check challenge appeal’ (CCA) system for business rates appeals, introduced in April 2017, has proven difficult and complicated for businesses to navigate, according to rating experts at Colliers International. In the past 21 months, only 65,380 businesses have disputed their assessments by the Valuation Office Agency (VOA) in England, accounting for less than 4% of the 1.88 million properties assessed. This is a significant drop from the 330,000 appeals during the same period after the 2010 list. The VOA’s figures also show that only 220,000 properties have been approved to begin the check stage, leaving 160,000 still waiting. Challenges are being resolved at a rate of 400 per month despite 800 being submitted, and councils in England estimate business rates appeals costs at £1.1bn for the next financial year, down from £1.2bn in the current year. The Ministry of Housing Communities and Local Government expects councils to collect £25bn in business rates in April 2019/20, a £206m increase with the standard tax rate exceeding 50% for the first time. Critics argue that the system’s complexity, lack of guidance, and unnavigable online portal discourage businesses from challenging their bills, while others believe it can be improved through engagement.
Factuality Level: 7
Factuality Justification: The article provides accurate information about the new CCA system for appealing against business rates assessments and its challenges, citing statistics from the government and experts in the field. It also includes quotes from industry professionals discussing their experiences with the system. However, it could provide more context on the reasons behind the low number of appeals and the impact of the system on businesses.
Noise Level: 3
Noise Justification: The article provides relevant information about the new CCA business rates appeals system and its challenges, but it could benefit from more in-depth analysis of the reasons behind the low number of appeals and potential solutions to improve the system.
Financial Relevance: Yes
Financial Markets Impacted: Businesses, commercial real estate agency, councils in England, and the Ministry of Housing Communities and Local Government
Financial Rating Justification: The article discusses the impact of the new business rates appeals system on businesses, commercial real estate agencies, local councils, and the government’s collection of funds through business rates.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the article, but the article discusses challenges faced by businesses due to a new business rates appeals system.
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