A REVALUATION of business rates by the Inland Revenue Valuation Office Agency – which is due to take effect next year – will have a significantly adverse impact on many firms and organisations in the Cotswolds, according to the District Council (CDC).

On average, businesses in the district face an increase of 12.7 per cent in their rateable values – the biggest increase in Gloucestershire.

Although some will actually see a reduction in their business rates, the increases far outweigh the reductions, say CDC, and, in one instance, the increase in the rates bill could be as high as £185,000 per year.

Cllr Lynden Stowe, CDC leader, feels that the revaluation is disproportionate.

He said: “This is nothing to do with this Council – the Inland Revenue Valuation Office has proposed these rises, and the average increase is far too high.

“It seems ridiculous that business rate payers in Cheltenham and Gloucester face average rises of just over 2 per cent, which effectively gives them a competitive advantage of about 10 per cent over neigbouring organisations in the Cotswolds.”

He said: “I would urge those who are losing out to review the Government’s findings – you can check your new valuation on the Valuation Office website at: tax.service.gov.uk/view-my-valuation/search and there may be grounds for appeal.

“You should also check to see if you are entitled to the small business rate relief which will be extended to more businesses after an announcement in the March 2016 budget.

“I can understand why some firms in this area might be expected to pay higher business rates than those in areas of the country where trading conditions are more difficult, but an overall increase of 12.7 per cent is far too high.

“Essentially, every extra pound that our local businesses and organisations have to pay is a loss to our local economy –they worked hard to weather the recession and now they are being asked to provide a heavy subsidy to other areas that didn’t perform so well.

“From a CDC perspective, we face an annual increase in Rateable Values totalling £23,000 for our offices at Cirencester and Moreton-in-Marsh, as well as significant additional rises in the rateable value of car parks and other assets.

“Additionally, we will not gain a penny of these increases in the form of additional income because the money will be shifted to the rest of the country.”

“I believe that the Government is currently consulting on a scheme called ‘transitional relief’ that would phase in large increases in rate bills to cushion the blow, but this still doesn’t make things right.

“I am particularly concerned about the local hotel sector which will be hit particularly hard,” he added.