Business Rates Appeals Backlog: What You Need to Know
If you run a small business or hospitality venue, there’s an important issue affecting thousands of firms across the UK right now: the business rates appeals system is buckling under the strain, and it could cost your business thousands in the meantime.
Here’s what’s happening. When business rates were revalued in 2023, many firms received bills they believed were too high. The Valuations Office Agency (VOA) — the body that sets these rates — has been flooded with appeals. A staggering 130,000 cases were lodged before the March 2025 deadline. The problem is that processing these appeals is taking far too long: on average 11 months, with some cases dragging on for 18 months or more.
The real pain point? You have to keep paying the new, higher rates while you wait for your appeal to be decided. Only if you win do you get a refund. This means businesses are hundreds or thousands of pounds out of pocket during the appeal period — money many simply don’t have, especially smaller firms already struggling with rising costs.
Tax advisers at Ryan predict the Treasury could owe £1.8 billion in rebates once these appeals are finally resolved. But that’s little comfort to businesses facing potential bankruptcy while they wait.
The Federation of Small Businesses has been vocal about the problem, pointing out that many small business owners simply don’t have the time or resources to lodge an appeal at all. And the hospitality sector — pubs, restaurants, hotels — is particularly worried, as many are facing significant rate increases on top of already rising labour and supply costs.
The VOA says it’s streamlining processes and prioritising cases where firms are in financial hardship, but clearly more needs to be done.
If you’re a business owner facing a rate hike you think is unfair, don’t give up. Lodge an appeal if you haven’t already — and if you’re struggling financially, contact the VOA directly to flag your situation. Consider speaking to your accountant or a tax adviser who can help build your case. Industry bodies like the Federation of Small Businesses also offer support and guidance.
TITLE: Business Rates Appeals Backlog: What Firms Need to Know
LABELS: Tax, News, Cost of Living, Consumer Rights
CONTENT:
If you run a small business or hospitality venue, there’s an important issue affecting thousands of firms across the UK right now: the business rates appeals system is buckling under the strain, and it could cost your business thousands in the meantime.
Here’s what’s happening. When business rates were revalued in 2023, many firms received bills they believed were too high. The Valuations Office Agency (VOA) — the body that sets these rates — has been flooded with appeals. A staggering 130,000 cases were lodged before the March 2025 deadline. The problem is that processing these appeals is taking far too long: on average 11 months, with some cases dragging on for 18 months or more.
The real pain point? You have to keep paying the new, higher rates while you wait for your appeal to be decided. Only if you win do you get a refund. This means businesses are hundreds or thousands of pounds out of pocket during the appeal period — money many simply don’t have, especially smaller firms already struggling with rising costs.
Tax advisers at Ryan predict the Treasury could owe £1.8 billion in rebates once these appeals are finally resolved. But that’s little comfort to businesses facing potential bankruptcy while they wait.
The Federation of Small Businesses has been vocal about the problem, pointing out that many small business owners simply don’t have the time or resources to lodge an appeal at all. And the hospitality sector — pubs, restaurants, hotels — is particularly worried, as many are facing significant rate increases on top of already rising labour and supply costs.
The VOA says it’s streamlining processes and prioritising cases where firms are in financial hardship, but clearly more needs to be done.
If you’re a business owner facing a rate hike you think is unfair, don’t give up. Lodge an appeal if you haven’t already — and if you’re struggling financially, contact the VOA directly to flag your situation. Consider speaking to your accountant or a tax adviser who can help build your case. Industry bodies like the Federation of Small Businesses also offer support and guidance.