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News Release

London

Jones Lang LaSalle comments on BRC proposals for business rates alternatives


London, 18th February 2014 - Commenting on the British Retail Consortium report on reform of business rates released today, Tim Beattie, Head of Rating at Jones Lang LaSalle said: “Given that business rates are levied against properties from car parks to heavy industry that have a wide ranging level of energy consumption, there could be some significant winners and losers as a result of such a radical change as taxing energy use. A lot of research would need to be undertaken to ensure that any proposed system maintained the aggregate tax yield and did not distort existing markets.”

“The option to simplify and band the valuation system may prove difficult  in a commercial environment where the largest rateable value in the country is the rating assessment for UK National Grid Gas PLC Rateable Value (RV) £401,654,000 and the next largest is Heathrow Airport Limited £217,860,000 (Heathrow).  At the moment the gas network pays nearly twice as much as Heathrow but if they fell in the same band they would pay the same.  The bands would have to be created to go all the way down to the smallest assessments which would mean the system would contain far too many bands to maintain fairness.” ​