The government on Thursday published details of real estate adjustments across England and Wales to calculate business rates, with many public buildings expected to be among the losers and those in major offices, major retail properties and historic hotels among the winners. . Across 1,590 NHS hospitals in both nations, the prorated value used to calculate bills will jump 17.4% to £893.35m, according to analysts at Altus Group, Britain’s biggest valuation consultancy, pointing to a likely a further £68m in the accounts. The valuation will jump 35%, according to consultancy Gerald Eve. This suggests almost an extra £1.6m in her account alone according to Altus. Jerry Schurder at Gerald Eve said hospitals, educational institutions and fire stations are likely to face an increase in business rates, as the amount public buildings pay is linked to current construction costs, which increased during the pandemic amid material and labor shortages. . He said educational institutions are likely to face a nearly 15% rise in tariffs and fire stations and health facilities 16%. School bills are covered by central government. Convenience stores will see their values increase by a total of 12.7%, while hair salons and beauty salons face a 6.3% rise, Altus estimates. However, many independent small shop owners will be protected by measures to protect small businesses, including a special discount for retail and hospitality shops and those with a value price of less than £15,000, according to Schurder. Harrods is likely to pay lower business rates next year. Photo: Tracey Whitefoot/Alamy He said many high streets and shopping centers would be “big winners” as business rate valuations are based on rents paid and these had plunged during the pandemic when many shops were forced to close for several months. Department stores Harrods and Selfridges will see their tax bills fall by around £8m each from April next year after the revaluation, which is based on rents paid in 2021 at a time of the pandemic, when many businesses in central London they were struggling with a pandemic lockdown. Subscribe to Business Today Get ready for the business day – we’ll point you to all the business news and analysis you need every morning Privacy Notice: Newsletters may contain information about charities, online advertising and content sponsored by external parties. For more information, see our Privacy Policy. We use Google reCaptcha to protect our website and Google’s Privacy Policy and Terms of Service apply. Larger stores, those over 1,850 square meters in size, are the biggest retail winners, with prices falling 34.7% on average, according to Altus. Department store chain John Lewis, for example, will save £5m on business rates at its Oxford Street store in London alone, although its costs elsewhere are rising as a result of rises in the statutory minimum wage next year and higher national insurance payments. Falling market rents in the city mean the Bank of England rate will drop by 7%, according to Schurder. Banks based in London’s Canary Wharf will also enjoy a cut in their property taxes after a shift to working from home during the pandemic has seen office rents in the area drop by an average of 1.7%, with some falling much more. The bill at HSBC’s international bank building in Canary Wharf, for example, is estimated to have fallen by almost 7%. New measures announced by Jeremy Hunt on Thursday mean the bill reduction will be fully implemented from next year – whereas previously it would have had gradual jumps of 4% to 5%, meaning some businesses never saw the full benefit of a cut to their bill.
