by Phil Pitt

A Medway-based expert in commercial property believes local businesses could be hit hard by a hike in rateable values, meaning they pay more in business rates.

Business rates are the taxes paid by shops and businesses as their contribution to local authority services. Unlike council tax paid by individuals, business rates are collected by central government.

The rateable value for business property is based on a professional assessment of the annual rent of a property if it was available to let on the open market at a fixed date. Properties are revalued after a number of years by the Valuation Office Agency.

But Chatham-based solicitor Peter Daniels, an expert in rateable values, thinks the last revaluation, carried out in April 2008 but coming into effect now, will see local businesses asked to pay more just as the county's economy struggles out of recession.

"The latest revaluation imposes significant increases ranging from 10 per cent in some areas to more than double in prime locations," said Mr Daniels who works for Stephens & Son LLP in Chatham.

"Even bearing in mind the economic climate in 2008, the increases appear high when taking into account that rateable values should reflect the rental value of premises."

And he expects many businesses will try to appeal the rating values set for their premises.

"I have been looking at rateable values in the Medways Towns for more than 20 years and from what I see and hear myself as well as from local surveyors, I am concerned the rateable value increases appear to be unreasonable, particularly compared to similar properties which have received lower valuations."