Plans to cut business rates 'catastrophic' for budgets

摘要

Potential cuts to the rateable values of business properties in light of COVID could have a 'catastrophic' impact on council budgets, London finance chiefs have warned. Finance chiefs said the lack of clarity from the Valuation Office Agency (VOA) will make it 'exceptionally challenging, if not impossible' for councils to submit their business rates forecasts, as they face a drop in their income. The VOA has been receiving a growing number of appeals on the rateable value of office and retail space due to the pandemic, but, according to London treasurers, it has not shared any details-making planning impossible. Finance chiefs claimed they faced a choice of planning for the worst-case scenario-potentially undermining their financial position-or ignoring the threat and risk not having enough cash to cover the losses.