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Unlock real savings now, and into the future

If you’re responsible for managing a university estate, you know that it includes a wide range of specialist properties, from student accommodation to research facilities and sporting venues. Determining the appropriate rating assessment can be a complex process. To help you manage this, our national education team provides specialist business rates advice that can save you money and give you greater control over your liabilities. Acting for over 60 universities, we have the experience and knowledge to provide you with the best possible outcomes.

IMPACT OF REVALUATION 2023 ON UNIVERSITIES

Numbers don’t tell the story

Like many other sectors, universities were adversely affected by the COVID-19 pandemic. At the valuation date for the 2023 Rating List, most campuses remained closed to most staff and students. Despite this, the governments decided not to allow appeals, citing the pandemic’s impact on property rental values. They explained that this would be considered in the 2023 Revaluation.

 

In contrast to many sectors where Rateable Values reflect the constrained use and enjoyment of property assets during the pandemic, most universities have seen double-digit percentage increases in their Rateable Values in the 2023 Rating List.

 

Opportunities

University estates tend to be large, complex, and constantly changing. Opportunities to moderate exposure to business rates can arise throughout a revaluation period and can include:

 

Challenges to the valuation treatment of older, more basic facilities that lack modern building services and sustainability credentials.

 

Appeals for temporary disturbances arising from refurbishment schemes and other estate remodelling.

 

Rearrangements of assessments, for example, to remove liability for areas of an estate placed into the hands of a third party.

 

Allowances for the phased occupation of major new build premises.

 

 

Regulatory compliance

England and Wales

 

Non-Domestic Rating Act 2023

 

The Non-Domestic Rating Act 2023 will introduce potentially onerous mandatory obligations on ratepayers to regularly update the tenure and physical details of all properties within their portfolios with the Valuations Office Agency (VOA).

 

Increasing the administrative burden on businesses, it will require prompt updates to the VOA and annual returns even where there are no changes, with penalty risks for non-compliance. The complexity of business rates management will increase with measures anticipated to be fully in place for the 2026 Revaluation.

 

Material Change of Circumstance (MCC)

 

Legislative changes to Material Change of Circumstance provisions took immediate effect in October 2023. They tighten the scope of MCCs in England so that new legislation, licensing regimes and guidance from public bodies will not be grounds for a change in Rateable Value between revaluations.

 

Completion Notices

 

For buildings that have been temporarily removed from the rating list during redevelopment, billing authorities will be able to issue Completion Notices in the same way as for a new building. The regulatory changes should be in effect from January 2024.

 

Scotland

 

Since January 2023, Scotland’s new legislation has transferred Valuation Appeals to the Scottish Courts Tribunal service. This entails strict deadlines and rigorous requirements for ratepayers and advisors. All appeals against valuations from April 2023 should have been submitted as a comprehensive case with supporting data by 31 August 2023. Learn more about how to appeal business rates in Scotland >

How we can help

For the 2017 list, we provided a full rating appeals and consultancy service to over 60 universities across Wales, England and Scotland of all sizes and ages, covering the widest variety of estate and building types. This breadth and depth of experience give us an unparalleled position in our negotiations with the Valuation Office Agency (VOA) and Scottish Assessors Association (SAA) both locally and nationally.

  • Review and Appeal

    We know when to challenge and when to leave well alone. Our experience with diverse university estates gives us a real edge in our negotiations. This insight and our forensic attention to detail translate into successful appeal strategies.

  • Budgeting and Forecasting

    We can provide certainty over bills and account for future new builds and other changes.

  • Council Tax

    Entitlement to various forms of Council Tax exemption has become a contentious issue in recent years. We have the expertise to navigate appeals against unfavourable treatment.

  • Disturbances and Deletions

    As well as dealing with disposals, demolitions and temporary disturbances, we also work with Valuation Officers and Scottish Assessors to manage and, where possible, ‘prior-agree’ alterations to assessments to reflect new buildings and other estate changes.

  • Exemptions and Reliefs

    As the single most important (and valuable) component of a university’s rate liability calculations, we have expertise in securing and preserving Charitable Relief for university ratepayers – and can provide detailed advice on how quasi-commercial ventures and partnerships can affect your entitlement.

  • Historic Rates Audit

    Our historic rates audit ensures that past errors and overpayments are resolved and refunded.

  • Rates Payment Management Service (RPMS)

    We offer the market-leading rate payment management service to ensure you only ever pay the correct rates liability.

  • Vacant Properties

    We can achieve empty rate relief for our university clients through various mitigation strategies. We have extensive experience assisting universities that may be coming out of properties pending future disposal, where considerable liability risks can arise.

Case Study

Why us?

We are sector specialists.

Saving Money

Our distinctive work in the university sector has included negotiating a Memorandum of Agreement with the Valuation Office Agency. These efforts in the 2017 Revaluation led to significant reductions in build cost rates and the adoption of the 'Gerald Eve' depreciation scale, a marked improvement over the former 'Monsanto' scale. Looking ahead, we aim to spearhead negotiations for the 2023 valuation scheme. Our approach acknowledges the need for various valuation methods and negotiation tactics due to the diversity of building types across universities.

Budgeting

Every phase of the building lifecycle, from acquisition to development, needs meticulous management of business rates for optimal results. Our liability forecasts enable accurate budgeting and incorporate estimates for new buildings by building or department, calculated by both the rate year and the financial year.

Minimising Risk

We provide essential strategic guidance, empowering universities to manage their business rates effectively. Our support ensures financial predictability, compliance with dynamic legislative changes, and adaptability to shifting economic landscapes.

Key Facts

9.3bn

total Rateable Value handled

£1.3bn

client savings since 2017, £3.8 bn since 2010

25%

of the FTSE represented

£1bn

rate liability processed each year as UK's leading outsourced ratepayer

Key contacts

Richard Ayres

Partner
Business Rates
London – West End

Charlie Wacher

Partner
London – West End

Helen Edwards

Partner
Business Rates
Cardiff

Graham Howarth

Partner
Business Rates
Glasgow

Revaluation 2023

Many businesses may have an opportunity to reduce their business rates liability. Are you one of them?

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NEWS AND INSIGHTS

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Related resources

Business Rates Business Rates data card Business Rates Resources Universities