Who sets the level of business rates I must pay?
The valuation process is overseen by the Valuation Office Agency (VOA), an executive agency of HM Revenue & Customs. The VOA is responsible for assessing and determining the rateable values of all non-domestic properties across England and Wales. These valuations form the basis for calculating business rates, ensuring that properties are fairly assessed following government regulations and market conditions. The agency uses a combination of property inspections, market analysis, and valuation methodologies to maintain accurate and up-to-date assessments, supporting businesses and local authorities in their financial planning
What is the role of the City Council in the business rates process?
The Ratable Value of the business property set by the VOA are used by the Council to calculate and collect the charge. Councils work out the business rates by multiplying the value of a property by the appropriate multiplier (set by the Government) and then deducting any applicable exemptions or reliefs. The current multiplier is 0.546, or 0.499. The formula for calculating the base charge is: (Rateable Value) × (Business Rate Multiplier) = Business Rates Payable
Does the Council keep business rates?
The vast amount of Business rates collected is passed on to the government. The amount Oxford City Council retains of the business rates varies from year to year but is currently around 12% of the net amount it collects.
Why have some rates gone up significantly in 2025/26?
Eligible businesses in retail, hospitality and leisure benefit from a reduction in business rates. In previous years, the government's business rates relief scheme provided a 75% discount to these sectors, this has been reduced to 40%. As a result, businesses that receive this benefit have seen their bills increase proportionally.
Why has the Council not taken action to remove rates from properties impacted by issues like Botley Road?
Decisions on changes to business rate charges are made by the VOA through an independent process, with each case assessed on its own merits. Because of this, the Council’s policy requires businesses to explore all avenues of charge reduction through the VOA before they can be considered for hardship or discretionary relief. There is no provision within the policy to make exceptions to that approach.
In setting its policy on relief, the Council must act in a fair way to all businesses. If the Council stepped away from its policy in relation to Botley Road, there would be several implications. First, it would need to make decisions on which of the many businesses on and around Botley Road should be eligible. Second, businesses that have previously been affected by works elsewhere in the city might believe that they had been unfairly treated in considerations made at that time. Third, such action would set precedents for future works across the city. The process of appeal through the VOA has been established to avoid these implications and to offer an independent review for businesses who feel their circumstances have changed.
How do I appeal against my business rates because of the disruption on Botley Road?
Affected businesses should apply to the VOA for a Material Change in Circumstances (MCC). This is the route the government has created for businesses that believe their rates no longer reflect their current circumstances. The link to the VOA website is here: Contact VOA - GOV.UK
Any business can follow this process if they believe there has been a material change in circumstances, not just businesses in Botley Road.
Is any help available to businesses to advise us on how to appeal?
Officers at the Council have been in discussion with colleagues at Network Rail, who are leading on the works at Botley Road. Network Rail has indicated that they would be willing to put in place advice sessions for businesses that wish to appeal, if there is interest in such a service. If you would like support in completing your appeal application, please contact OxfordFeedback@networkrail.co.uk
More generally, Network Rail has a website which provides details on the works being carried out at Botley Road. This can be accessed at Network Rail Oxfordshire
Can the Council support our appeal?
The Leader of the Council wrote to the chairman of the Valuation Office Agency, urging it to look favourably on any appeals from Frideswide Square and Botley Road businesses. The Council has followed up on that letter with the VOA and has asked for expediency in reviewing businesses’ appeals that have been submitted relating to the Botley Road closure.
Can I apply to the Council for Hardship relief?
Councils have discretion to reduce or cancel business rates through Hardship Relief. To give this relief, the Council must agree that both of the following apply:
- the business owner would suffer financial hardship,
- it is in the best interests of the community
The Council’s policy on rates relief is that all other avenues to a reduction in rates must have been exhausted before a discretionary reduction, such as Hardship, is considered. In relation to Botley Road, the Material Change in Circumstances process is clearly a relevant consideration and therefore must have been applied for before Hardship relief can be assessed.
Can the Council put a hold on rates whilst an appeal is being considered?
The Council has a legal duty to collect the business rates during the appeal process, the legislation requires the Council to assume that all appeals will be unsuccessful and to proceed accordingly. The Council will continue to liaise with the VOA to ask that appeals concerning the Botley Road closure are considered promptly.
Is the Council doing anything else to support businesses on Botley Road who are impacted by the road closure?
Council officers have committed to meeting regularly with Botley Road businesses and to attending meetings set up by Network Rail to update businesses on progress around the scheme.
In those meetings, we are discussing areas where the Council and Network Rail might be able to implement approaches which would help trade at Botley Road. We would encourage businesses to take part in these sessions.
