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Mon 27th Feb 2017 - Government plans to reform business rates appeal process could ‘cost hospitality industry £95m’
Government plans to reform business rates appeal process could ‘cost hospitality industry £95m’: The Association of Licensed Multiple Retailers (ALMR) has once again called on the government to ensure hospitality businesses are guaranteed a right of appeal to address incorrect rateable values. This follows publication of new research by the ALMR in association with BNP Paribas Real Estate showing the scale of appeals that could potentially be dismissed on the grounds of reasonable professional judgement. Figures published by the ALMR, based on research by BNP Paribas Real Estate, show almost 6,000 reductions in rateable value of 10% and under and 13,690 in total. The total value of reduced rates liability for rateable value decreases under 10% is in excess of £95m. ALMR chief executive Kate Nicholls said: “The figures show how vitally important it is that a robust and accurate appeals system remains in place and that appeals are not able to be dismissed under the indistinct and subjective notion of reasonable professional judgement. There is a very real danger that appeals on ratings inaccurate by as much as 10% will be dismissed under this new rule, costing businesses huge amounts of money. The figures show nearly 6,000 businesses receiving a reduction in their rates due to inaccuracies falling within a 10% margin of error. The total liability for these reductions is absolutely huge – in excess of £95m. Under the new system proposed by the government, these appeals could be summarily dismissed with no recourse for employers. It is absolutely crucial that businesses are guaranteed a right to appeal erroneous decisions or the sector could be facing a totally unfair and potentially catastrophic rates hike.”


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