JLL’s sector analysis of the likely impact of the 2021 rating adjustment on Offices, Retail, Industrial & Logistics and Hotels
Thanks to steady economic performance, high employment, low interest rates and good wage growth, the next rates revaluation in 2021 will be less impactful on landlords and tenants than in 2017.
In our latest report, 2021 Rating Revaluation, we predict small changes in the rating multiplier in 2021 which, coupled with a period of economic stability, provide ideal conditions for the Government to restructure the business rates system to be more acceptable to, and better understood by taxpayers.
In the report, our experts anticipate that in 2021, the rating multiplier will fall slightly in England from 49.1 pence (2019-20) to 48 pence but increase in Wales from 52.6 pence (2019-20) to 54 pence. Scotland are unaffected by this revaluation as they will not revalue until 2022.
The report provides sector analysis for Offices, Retail, Industrial & Logistics and Hotels including valuable business intelligence to guide investment strategy.
Tim Beattie, lead director of JLL's UK Rating team commented: “The relative stability across England and Wales gives the Government the opportunity to do away with some of the distortions in the rating system. The lower volatility of values between revaluations should reduce the fiscal cost of capping the largest increases. The Government should take advantage of this stable period to look again at the business rates system at the earliest opportunity. Outlining an upwards only transitional scheme; ensuring business rates relief is applied with caution; and introducing a revised rating multiplier of 40 pence in England following each revaluation, will return the business rates system to one that works with taxpayers, rather than against them.”