April 1 saw rates change for many businesses across Cheshire, for some, it was for the better whilst, for others, it was for the worse.

Non-domestic rateable values (RV) have changed for many properties which directly affects how much a company pays in business rates.

An RV is a rating that is given to any commercial property and determines how much a company owner pays in business rates. They are reviewed every six years. It might not seem important but the changes could have drastic changes in the long and short-term for businesses.

Retail, as expected will see the biggest shift in RVs, a direct consequence of a consumer shift to online trading from the traditional high street.

Alongside the shifting consumer patterns, the COVID-19 pandemic also accelerated this and has meant that many larger town and city centre retail units will see RV reductions of up to 45%.

Depending on the size of the unit, there might be some exceptions with convenience stores and smaller units witnessing an increase in RV.

Like the larger town and city centre units, pubs and restaurants have suffered a large fall in trade over the last few years, again exacerbated by the pandemic.

That has meant their RVs will fall on average by 20%. This will be of some relief to the hospitality industry which has struggled with higher costs and inflation in recent months.

Restaurants which have struggled aftrer the pandemic will see their RV decrease, which should help in business rates (Image - Unsplash/Marco Chilese)

However, the reduction of RVs for large retail and hospitality sectors will be offset by a large increase in the RVs that the large industrial and logistics sectors will have to pay, a direct result of online retail growing exponentially - It showed a jump in value to the UK economy from £75 billion in 2019 to a peak of £120 billion in 2021. This has meant the demand for warehousing and logistics space has grown, meaning an average increase of 35% in RVs for this sector.

Industrial warehousing and logistics will see a huge hike in business rates (Image - Wikimedia Commons)

Cheshire, and specifically Crewe has seen a large increase in warehousing and logistics space over the last couple of years, including projects at Basford East and Radway Green.

To find specifically how your business is affected, check the Valuation Office Agency website.

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