Almost 200,000 businesses summoned to court over business rates last year

09 July 2018 by
Almost 200,000 businesses summoned to court over business rates last year

Almost 200,000 businesses are believed to have been hauled before magistrates' courts for non-payment of business rates in the 2017/18 financial year, following the revaluation.

Real estate advisor Altus Group revealed information from 212 councils, representing 1,302,234 of the 1,902,148 business properties liable for rates, following requests under the Freedom of Information Act.

The information received showed 129,306 summons issued, equating to 9.9%, with Altus Group forecasting that the overall number is likely to have been in the region of 188,883.

When those businesses exempt from rates due to having a rateable value of less than £12,000 are taken into account the data suggests almost one in every six commercial properties receiving a business rates bill last year, also received a summons to court.

Robert Hayton, head of UK business rates at Altus Group, said: "Annual inflationary rises for the seven years prior to the revaluation pushed the tax rate from 41.4p in 2010/11 to 49.7p in 2016/17 meaning a rise of 20% in bills even before the revaluation came into effect creating financial pressures."

"Add to the mix the current, deeply unfair, system of downward transitional relief which severely limits the amount by which bills can go down, meant many businesses ended up paying disproportionately high bills in locations where local economies were underperforming and values had fallen."

Business rates revaluation ‘as bad as 2008 financial crash' for restaurants >>

Leon calls for action over rates and rents as revenue increases fail to reap rewards >>

UKHospitality backs high street report's call for business rates review >>

Get The Caterer every week on your smartphone, tablet, or even in good old-pub fashioned hard copy (or all three!).

The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Check mark icon
Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.


Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking