Manufacturers in the London area could see business rates double from April next year, property analysts have warned. Sites near major motorways could experience rises of up to 40%.
The moves will come as part of Revaluation 2000, the first recalculation of property rateable values since 1993.
Research by chartered surveyor Gerald Eve suggests the rise is being driven by a shortage of manufacturing and distribution developments at a time of strong rental growth. `Companies are facing substantial rate rises next year at a time of economic slowdown,’ said Keith Norman, a partner in its industrial department.
He said the Government’s transitional relief scheme could soften the blow for the worst-hit occupiers. `But it remains unclear whether this will be continued,’ he added.
Property services group Fletcher King said the lack of appeals against bills has encouraged authorities to push for more cash.
It suggests firms should work out the relative change in property prices in their area, and appeal if they think the bill is too high.