The CLA, which represents business and landowners’ interests, has written to Treasury Ministers, arguing that the rates system which could lead to increased taxes for rural businesses is flawed and in need of review.

From April, thousands of businesses in Britain could see a rise in the business rates they pay, after the government reevaluated rates to take into account changes in property values since 2010. The government has claimed this is to make rates fairer, and highlighted that some areas will see a reduction in business taxes paid, which they claim could stimulate investment into new areas. For example, many towns in the north-west will see rates reduced. The Treasury claims its re-evaluation will mean businesses save £6.7 billion over the next 5 years.

The CLA, however, believes the government’s plan is flawed. On Friday the Association’s President, Ross Murray wrote to David gauke, chief secretary to the Treasury, setting out an action plan for the government to make life easier for businesses.

Ross Murray said, “Rural businesses are suffering because of a clumsy and unfair rates system. From this April, thousands of businesses will see dramatic increases in their rates bill, a problem exacerbated by the political decision to delay revaluation by two years.

“Ministers appear to have a tin ear to this problem and it is not good enough. That is why we are setting out an action plan that Ministers could adopt as soon as this Budget on 8 March going some way to defuse a looming rural economic crisis.”

The CLA’s 5-point action plan asks the government to:

1. Remove the 'cliff edge' – Businesses with a rateable value of £12,000 and below will be exempt from paying rates under the new scheme. However, CLA believes this will adversely affect businesses which have moved from below the previous threshold to a rateable value above the new threshold, meaning they will have to pay taxes. The Association wants businesses that were exempt under the 2016 Small Business Rate Relief to remain exempt under the 2017 scheme even if their new value has taken them over the threshold.
2. Remove the ban on businesses with multiple properties qualifying for Small Business Rates Relief – CLA claims that there is an “arbitrary discrimination” against rural businesses, as businesses can’t be exempted from paying rates if they include more than one property.
3. Remove the requirement to pay for appeals for worst affected – CLA wants the government to remove the requirement to pay for an appeal from rural businesses whose rates rise is a result of a ‘scheme” valuation rather than an individual valuation by the Valuation Office Agency.
4. Remove rates liability for empty buildings in rural areas – Aside from a short grace period, owners are required to pay rates on empty properties. The CLA wants the government to extend a rates-free period on rural property from three months for commercial buildings and six months for industrial to a minimum of two years, which the Association believes would “Reflect the slower uptake of new property in rural areas.”
5. Deliver right first time valuations in rural areas – CLA is also calling for a review of the approach used to value property. It wants to ensure valuations are accurate based on local circumstances and not based on regionally estimated benchmarks.