Factories, warehouses and offices in Wales will be hit harder by revaluations than other industries, new analysis has found.
Welsh independent commercial property advisors Cooke & Arkwright has taken an in-depth statistical analysis of the revaluation of rates and assessments of commercial properties.
The analysis reveals that some industries will be hit harder by the revaluations than others, including factories and warehouses where over 19,000 will see their assessments increase. While more than 15,000 offices will also see their assessments increase.
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Offices
- 2,565 assessments showed no change between lists.
- 15,824 assessments will increase.
- 1,450 office assessments will be reduced.
Retail
- 2,586 assessments unchanged.
- 11,482 assessments increased.
- 10,032 assessments reduced.
Factories and Warehouses
- 1,788 assessments unchanged.
- 19,623 assessments increased.
- 1,252 assessments reduced.
The analysis comes as businesses in Wales are being urged to check their property revaluations ahead of the UK-wide revaluation of rates which comes into effect on April 1.
Following the revaluation in April, transitional relief will be provided to all ratepayers whose liability increases by more than £300 as a result of revaluation.
The Valuation Office Agency’s draft rating list, which gives the assessments that will form the basis of liabilities to business rates for the three year period from 1 April 2023, was published in November.
Now that the Welsh Government's Draft Budget has been announced and its position on the multiplier, transitional relief and support is confirmed, Welsh ratepayers will be able to accurately budget for their business rates liability.
Andrew West, director at Cooke & Arkwright, said: "The budget announcements, such as the multiplier being frozen at 0.535 and transitional relief, are as we predicted and are broadly in line with those announced for England by the Chancellor in the Autumn Statement.
“From our analysis of the revaluation, Wales will see a reduction of 10.1% in retail assessments but surprising increases for factories throughout Blaenau Gwent, Caerphilly and Torfaen and increases in office assessments in Blaenau Gwent, Bridgend, Merthyr Tydfil, Vale of Glamorgan and Wrexham.”
Mr West added: "The high level changes outlined above are surprising. In particular more shops seeing increases than reductions; and the stark contrast between the very few office assessments which will see a reduction compared with a much larger number of increases. The large number of increases in factory and warehouse assessments was as predicted by us.
“These changes are particularly surprising in the context of the valuation date of April 2021 for the new rating list, during which time the economy was still suffering from the effects of the coronavirus crisis. It should be noted that these changes are compared with the current 2017 rating list for the whole of Wales.”
The commercial property advisory firm is now undertaking preparatory work to challenge many of these new assessments.
Mr West said: “We will engage with the Valuation Office Agency from April next year in order to promote reductions and seek justification for any changes. We are confident that many of these assessments can be reduced.”
In its Draft Budget last month, the Welsh Government announced that business rates would be frozen at the rate of 0.535 for the 2023-24 financial year as part of its £460m-plus support package for businesses over the next two financial years.
Sectors directly affected by the pandemic such as retail, leisure and hospitality will also receive 75% non-domestic rates relief during 2023-24.
Chambers Wales, a corporate partner of Cooke & Arkwright, welcomed the announcement.
Paul Slevin, executive chair of Chambers Wales South East, South West and Mid, said: “We welcome the business rates support package announced by the Welsh Government and that our calls for the multiplier to be frozen have been heard and actioned. The package as a whole has been designed to support businesses and our economy through the challenges of recession.”
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