BHCC - Rates Revaluation

Description

As a Unitary Authority Brighton & Hove City Council owns and manages an operational portfolio across the City, which includes schools, civic buildings, libraries, sports facilities, offices, car parks, cemeteries, community buildings, leisure facilities and social care facilities all of which are occupied for the provision of council services and amenities. In addition to this, the council holds substantial commercial investment, agricultural investment and commercial seafront property portfolios, of which the council retains varying elements of control. The Council has a responsibility to pay business rates on the operational properties that it owns as well as any vacant properties within the commercial, agricultural and seafront portfolios. The new rating list comes into effect on the 1st April 2023. Current RV's for the 2017 list are based against rental values from 1st April 2015. The political and economic landscape since this time has shifted substantially, with the impact of Covid combined with interest rates at the highest they've been in decades. Early indications suggest the impact of the new rating values (based against rental values as of 1st April 2021) will be mixed across all commercial property types, with some seeing reductions, but others seeing increases. This liability represents a substantial financial constraint on the council, with business rates costs expected to be in the region of £2.5 million in 2023/24. As such, consultancy support is required to mitigate the council's rates liability create savings by identifying properties where the rateable value can be successfully challenged.