In 2012, the decision was made to push back the current revaluations process from its originally scheduled date of 2015, leading to a seven-year gap between revaluations. During that period, property values, upon which business rates are based, changed dramatically.

‘There’s been a disconnect between business rates and rents,’ Colliers International head of ratings John Webber told CCH Daily. ‘What’s happened in central London areas has been akin to having a stamp duty holiday in a housing boom. The business rates were not a factor for people and they paid higher and higher rents but then the music stops with a revaluation and they’re stuck with the higher rents and also a higher rates bill.’

By way of illustration, Colliers estimates that Dover Street in Mayfair, central London, will see the sharpest rise in bills. The high-end fashion shops such as Victoria Beckham, Jimmy Choo, Alexander McQueen and exclusive nightspot Mahiki based there are likely to see their rateable values increase by 415%.

In greater London, Brixton is facing a 128% increase, while Westfield in Shepherds Bush could see a 102% increase.

On the other hand, in areas such as Newport in South Wales, there is likely to be a 71% cut in rateable values. In Suffolk, Lowestoft may get reductions of 41% and in Yorkshire, Redcar may see 38% cuts, according to Colliers. Similarly in County Durham, Stockton-on-Tees is expecting a 42% fall in rateable values.

In the south east, Dover is set to see a 41% fall, with Gravesend’s businesses set to receive a 35% drop in rates. Marlow, on the other hand will see a 58% increase in its rates.

As a result, there have been calls from stakeholders, advisers and politicians including Treasury Select Committee chair Andrew Tyrie MP for more frequent revaluations in order to prevent such shocks to business.

‘With the amount of data analysis that takes place, there’s no excuse [not to undertake more frequent revaluations],’ Webber said. ‘If you look at places like Denmark and the Netherlands, they’ve been doing annual revaluations for years. Why is it so difficult to do it, perhaps not annually, but every three years? There’s enough information out there.

‘If there’s one point in the market where you’d need a revaluation it’s when you’ve had a massive jolt to the economy and property in the post-2008-09 world when you had these changes,’ Webber said. ‘Suddenly that seven-year gap is more like a 12-year gap because of the structural changes that have taken place in the property market over that period.’

Colliers International report How the 2017 Rating Revaluation will affect High Street Retailers is available here: http://bit.ly/2m2R5AW

Accountancy will be looking in-depth at business rates in the April edition of the magazine.