Investigation Reveals Alarming Trend in UK Business Rates Enforcement

  • Over 200,000 companies sued for failing to pay business rates
  • Altus Group’s investigation reveals data from 68% of UK properties
  • 129,306 summonses issued between April 2017 and March 2018
  • Small businesses exempt with rateable value under £12,000
  • Inflationary rises and unfair relief system led to disproportionate bills
  • Business rates increased by 3.5% to £24.8bn

An investigation by Altus Group has revealed that over 200,000 businesses were taken to court for failing to pay business rates between April 2017 and March 2018. The data covers 68% of all UK properties, with 129,306 summonses issued, accounting for 9.9% of all premises. Small businesses with a rateable value under £12,000 were exempt, while inflationary rises and an unfair relief system led to disproportionate bills in areas with underperforming local economies. Business rates increased by 3.5%, reaching £24.8bn according to the Ministry of Housing, Communities and Local Government.

Factuality Level: 9
Factuality Justification: The article provides accurate information based on data collected through FOI requests and analysis by Altus Group, cites official government data, and includes expert commentary from Robert Hayton. It presents a clear picture of the situation without sensationalism or opinion masquerading as fact.
Noise Level: 6
Noise Justification: The article provides relevant information about businesses failing to pay business rates and offers some analysis from an expert in the field. However, it could benefit from more context on the broader implications of this issue and potential solutions or consequences for affected businesses.
Financial Relevance: Yes
Financial Markets Impacted: UK commercial property market
Financial Rating Justification: The article discusses the impact of business rates on businesses in the UK, which can affect their financial performance and decisions. It also mentions an increase in overall business rates, potentially affecting the profitability and operations of these companies.
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. The situation described is a financial crisis related to businesses not paying their business rates, but it does not reach the level of a major financial crash or crisis.

Reported publicly: www.retailsector.co.uk