Councils' level of business rates income held in reserve to cover future appeals rose by almost a third last year – representing an increase of almost £1bn.
The government has proposed a three-year valuation period for business rates, alongside changes to the appeals process, in a bid to make the system more effective.
The government is to retrospectively ban business rates appeals based on a drop in property values due to Covid-19, a move labelled as “scandalous” by rating advisers.
Councils face a massive rise in business rates appeals, which have reached around 1,000 a day as a result of Covid-19, according to real estate firm Colliers.
