An investigation of the impact of 2017 Business Rates Revaluation on independent high street retailers in the north of England

Greenhalgh, Paul, Johnson, Lynn and Huntley, Victoria (2019) An investigation of the impact of 2017 Business Rates Revaluation on independent high street retailers in the north of England. Journal of Property Investment & Finance, 37 (3). pp. 241-254. ISSN 1463-578X

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Official URL: https://doi.org/10.1108/jpif-01-2019-0008

Abstract

Purpose – Many national retailers have complained about increases in business rates tax bills since the
2017 revaluation. What impact has the 2017 business rates revaluation had on independent high street
retailers in market towns in the north of England? The paper aims to discuss these issues.
Design/methodology/approach – The study uses Valuation Office Agency rating list data to determine
rateable value and business rates payable for independent high street retailers in eight northern market
towns either side of the 2017 rating revaluation. The data were analysed using business rates matrices to
reveal the impact of the new rating list on independent retailers in the eight locations.
Findings – Analysis reveals that the majority of independent retailers in the northern market towns sampled
have experienced reductions in both the rateable value of their premises and business rates payable. Increase
in the rates relief threshold has extended relief to almost half of the independent retailers in the study, most of
whom receive 100 per cent relief.
Practical implications – Charity shops receive at least 80 per cent rates relief which means they are able
to afford to pay higher rents. This “sets the tone” for landlords setting market rents in that location which
are then used as comparable evidence by the VOA when determining rateable values at revaluation further
polarising the gap between rate payers and those to are exempt.
Originality/value – Focussing on independent retailers on high streets in markets towns in north of England, this
study provides an alternative perspective to the orthodox view of business rates revaluations having a negative
impact on retailers.

Item Type: Article
Uncontrolled Keywords: Retailing, Taxation, Business rates
Subjects: L700 Human and Social Geography
N100 Business studies
Department: Faculties > Engineering and Environment > Architecture and Built Environment
Depositing User: Paul Burns
Date Deposited: 25 Feb 2019 13:00
Last Modified: 03 Apr 2019 03:30
URI: http://nrl.northumbria.ac.uk/id/eprint/38211

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