Number of firms complaining about business rates plunges

Blame for the drop has been placed with the new appeals process introduced in April

1.9 million properties in England were revalued when the business rates system was overhauled in April (Getty)

The number of firms contesting their business rates has plummeted in the last seven years, new figures show.

Data from the Government’s Valuation Office Agency (VOA) shows that by the third quarter of 2010 there were 182,000 appeals by firms in England contesting the calculation of their liability.

However, since the new business rates appeals process was introduced in April, this figure has fallen to 5,650 firms, or 0.3 per cent of the1.85m rateable properties in England.

Of these firms, 2,260 cases were outstanding while only 400 had moved to the next stage to make a formal challenge.

But blame for the sharp drop in complaints has been placed with the new appeals process that was introduced in April.

John Webber, head of business rating at Colliers International, said: “It beggars belief that businesses are so happy with their rate bills in 2017 that hardly any one is contesting.

“We would argue the figures for 2017 are so low purely because ratepayers can’t navigate through the new system.”

Business rates are a tax charged on business properties, such as shops, offices, pubs.

They were overhauled in April - going up for the first time in seven years - leaving many firms facing crippling hikes.

The online Check Challenge Appeal system has drawn widespread criticism from business groups for being unworkable and difficult for negotiate.

Under the system, ratepayers are not able to contest a rates bill if its margin of error is inside 15 per cent. Ratepayers are also required to process each of their properties separately.

“If the Government is going to maintain such high taxes, it must at least give businesses a system that gives them a chance to properly appeal them and is transparent," said Webber.

However, ratings adviser Altus Group said that there would be a surge in the number of appeals in 2018 once advisers got to grips with the new system.

Alex Probyn, president of UK business rates at Altus group, said: “The new regulations are here to stay and need more time to be made to work.

“While there remain genuine concerns in the ratings community, we believe the new regulations can be made to work through co-operation and anticipate the numbers rising dramatically in the new year as advisers assemble the evidence required.”