Hotel Business Rates - Any Wriggle Room Left?

Having submitted Business Rating appeals against some 2010 Rating List assessments, I - like most advisers - have waited patiently for the Discussion period to begin. This is the limited time frame in which the Valuation Office will discuss any one particular appeal.

This reflects the workload of the Valuation office, but it should be bourne in mind that appeals are not considered in strict chronological order. For example, an appeal I submitted in September 2010 has already been discussed, but appeals submitted in June 2010 have yet to commence their discussion period.

Reliance on previous years' settlements is rarely successful, for the Valuation Office are relying on an agreement reached with a representative body of the Hotel Industry and in my experience the result is that higher Rateable Values have been reached in several instances. The multiple applied to the gross income has increased, and hence higher Rateable Values are found.

So, with a prescriptive and agreed table used, is there any Wriggle Room left when it comes to negotiating Hotel Business Rating Assessments?

I think there is, but clearly the days of reaching an agreement based on something 'feeling like a 7% Hotel' appear gone, full stop. Whilst there may be a silver lining in that this may of course mean that the 'Rating Cowboys' who charge fees to submit appeals and then appear to disappear may find obtaining business become harder, it does mean that there is all the more reason to obtain proper, professional advice. This is especially important as the Valuation Tribunal has the power to increase Rateable Value assessments at any Tribunal Hearing, should the Valuation Office so demonstrate.

Detailed records of income and expenditure, evidence of the affect of an individual's ability to bring in additional trade and extra income are all needed to be able to assess the Fair Maintainable Trade. Regular and close liaison between Chartered Surveyors and clients over trading patterns is therefore necessary.

There still remains, of course, the ability to seek a re-assessment should a Material Change occur - such as the opening of a new competitor nearby or alterations in trading patterns due to re-configured highway links etc.

Business rating has never been a quick route to a refund, and the future looks like it will be all the more worthwhile ensuring that Hoteliers have proactive experts advising them regarding Business Rates.