Warwick to be one of the worst hit by new business rates

The University of Warwick is set to be hit hard by the government’s new increase in business rates taking effect in April, new analysis has shown.

Business rates are taxes on business properties, and experts have predicted that a dramatic increase in the value of university buildings will mean that the higher education sector will be one of the worst-affected.

The University of Manchester, the University of Nottingham, and the University of Warwick are the institutions expected to suffer the most from the increase, due to the continued increase of the value of these universities’ properties.

Since 2010, the University of Manchester’s rateable value has risen by £7.43 million, the University of Nottingham’s by £4.43 million, and the University of Warwick’s by £3.67 million.

In total, the combined rateable value of universities in England and Wales has increased by 53% in recent years, from £491 million to £747 million.

A Universities UK spokesperson has commented that such an increase shows the: “investment in the size, quality and technology in our estates in recent years.”

When the changes take place in April, experts estimate that business rates will fall for 920 000 businesses, stay the same for 420 000, and increase for 510 000.

According to business rates consultancy CVS, universities’ business rates could rise by over 50%. This would mean that annual bills for universities could increase to £125 million over the next five years.

However, government sources have claimed that the charitable status of universities will see their bills slashed by 80%.

Furthermore, Chief Secretary to the Treasury, David Gauke, claims that the government will introduce: “£3.6 billion in support for companies affected by the business rates revaluation — a process that is making the system accurate and fair for everyone.”