The government launched a review of the business rates system in March 2020, with the objectives of reducing the burden on business, improving the current system, and considering longer-term reforms. The Final Report of the Business Rates Review, published in October 2021, announced changes to cut the burden of business rates worth over £6 billion from 2022-23 to 2026-27, and introduced a roadmap for delivering reforms. The government has since provided further support worth £13.6 billion at Autumn Statement 2022, building on the reforms announced at Budget 2021.
The latest technical consultation provided an opportunity for stakeholders to set out their views on our specific plans. This document provides a summary of these responses, along with an overview of how these have been used to improve and refine HMT proposals. The document can be found at https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1142759/M5373_-_Business_Rates_Technical_Consultation_Summary_of_Responses_FINAL.pdf.
Alongside this, the government has published a Note detailing the current estimates of the anticipated impact of the VOA’s new duty on ratepayers to tell the VOA about changes relevant for valuations. The new duty is essential to support more frequent revaluations, a key stakeholder ask at the 2020 Review of Business Rates. The Note can be found at M5373_-_Non-Domestic_Rating_Information_and_Impact_Note__NDRIIN__FINAL.pdf (publishing.service.gov.uk).
The government has published a summary of responses to the ‘Digitalising Business Rates: connecting business rates and tax data’ consultation. The project aims to modernise the business rates system, improve the targeting of rates relief, generate better data for central and local government and improve business rates compliance. The document provides a summary of the consultation responses we received and sets out proposed next steps on how, why and when the government will deliver DBR over the coming years
The document can be found at Digitalising Business Rates: connecting business rates and tax data - GOV.UK (www.gov.uk).
The government will legislate for a new duty on ratepayers to provide a taxpayer reference number (such as a self-assessment or corporation tax unique taxpayer reference (UTR), or a VAT number) to HMRC. Ratepayers will provide this number using a new gov.uk service; this will be the same service they will use to provide information to the VOA, to minimise the burden on ratepayers. The planned delivery date for the new duty and the gov.uk service is 2026/27.
Alongside this, the government has published a note detailing the current estimates of the anticipated impact of this duty on ratepayers. The Note can be found at Digitalising Business Rates - GOV.UK (www.gov.uk.
The Valuation Office Agency (VOA) is asking for views on disclosing more information on business rates valuations. This includes having access to an analysis of the evidence used to calculate the rateable value of your property and an explanation of how evidence has been used.
The proposed changes follow the government’s review of the business rates system. VOA welcomes views from:
The consultation can be found at https://www.gov.uk/government/consultations/consultation-on-disclosure-sharing-information-on-business-rate-valuations.
Consultation closes on 7 June 2023.
The government wished to consider whether the existing arrangements provided the appropriate certainty and consistency in the way that HMOs are banded for council tax, or whether alternative arrangements should be introduced.
This consultation seeks views on the scope of the issue, the current landscape for the valuation of HMOs and the government’s proposals to achieving these objectives.
The consultation can be found at
https://www.gov.uk/government/consultations/council-tax-valuation-of-houses-in-multiple-occupation-hmos.
Closing date for comments was 31 March 2023.
The Institute’s response can be found at https://www.irrv.net/documents/weblinks/2023/4/IRRV-Response-CTax-valn-HMOs-consultation.pdf.
The Law Commission of England and Wales has announced that it will review Part 2 of the Landlord and Tenant Act 1954, to ensure that it works for today’s commercial leasehold market.
Businesses operating in high streets, towns and other commercial centres rely heavily on securing the right premises to grow and meet customer needs. A large proportion of businesses rent their warehouses, factories, shops and office spaces, rather than owning the freehold. Estimates have suggested that around half of all UK commercial property is rented.
For over half a century, the Landlord and Tenant Act 1954 has given businesses the right to acquire a new lease of their premises after their existing one has run out – known as “security of tenure”.
It is now nearly 20 years since the legislation was last reviewed. Those who rely on the Act report that it is inflexible, bureaucratic and out of date, causing extra cost and delay for both landlords and tenants – as well as preventing space in high streets and other commercial centres from being occupied quickly and efficiently.
Following the rise of online retail, the 2008 financial crisis and recent pandemic, the landscape for businesses has also shifted significantly – leading to growing calls for laws to be modernised. Today, many landlords and businesses entering into leases decide to exclude “security of tenure”, leaving businesses without their longstanding right to a new lease.
The Law Commission’s review will explore problems with the existing law with a view to developing a modern legal framework that is widely used rather than opted out of, and that helps businesses to grow and communities to thrive.
The review will also seek to support the long-term resilience of high streets, by making sure current legislation is fit for today’s commercial market, while also considering Government priorities, including net zero and levelling up.
The Law Commission aims to publish a consultation paper by December 2023. For more information visit the Law Commission’s project page at https://www.lawcom.gov.uk/project/business-tenancies-the-right-to-renew/.
The Department for Levelling Up, Housing and Communities (DLUHC) and the Department for Work and Pensions (DWP) have commissioned research from the Centre for Regional Economic and Social Research (at Sheffield Hallam University) to assess the size, cost and demand of the supported housing sector. The study will cover supported housing across England, Scotland and Wales.
This research will update and build on the 2016 supported accommodation review. This is vital research to ensure government has the best available data for making decisions on the future direction of supported housing policy, to ensure residents in supported housing receive good quality support and accommodation which represents value for money. In England, this is currently focused on the Supported Housing (Regulatory Oversight) Bill, and DLUHC is also working closely with DWP on Housing Benefit (HB) rules which apply across Great Britain.
The research will take a mixed method approach and includes an analysis of secondary data as well as surveys of local authority Housing Benefit teams, supported housing commissioners, and supported housing providers. There will also be a series of in-depth case studies with supported housing providers, local authorities and county councils.
The research team at Sheffield Hallam University are keen to encourage all Housing Benefit and Revenue Teams as well as those involved in commissioning supported housing services to take part in the research.
DWP will have sent the links for the Housing Benefit Team survey and Supported Housing Commissioner survey via their Single Point of Contact within local authorities on the 22 March 2023. If you are not aware of the survey but think that you or another member of the team is the most appropriate person to complete the survey for your organisation then please contact Dave Leather (part of the Sheffield Hallam University research team) and he will be able to forward the details for the survey directly to you: d.leather@shu.ac.uk
The research team also want to speak to those involved in the commissioning of supported housing in more depth. This could be via a discussion with a member of the team or by taking part in a case study. This would give you a chance to give your perspective on the factors affecting supported housing provision in your area and how this varies across client groups. All information collected as part of the study will only be seen by the research team, all data collected will be anonymised and not attributed to any individual or organisation in reporting.
If you are interested in learning more about the research or to discuss what is involved in taking part the research as a case study area or via in-depth interview, then please contact Christina Beatty at C.Beatty@shu.ac.uk.
The Sheffield Hallam research team are very grateful for the time given by respondents to complete the survey, to take part in the case studies research, or to take part in the in-depth interviews as it really makes a difference to the overall research and robustness of the findings. The research findings are expected to be published by the end of 2023.
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