Let’s get political

CVS appoints GK Political to work on your behalf to bring about positive results.

Along with the current backlog of rates appeals at the Valuation office affecting clients across the board, there are constant political and policy developments in the business rates arena. To ensure we at CVS stay on top of our game we have appointed GK Political to work on your behalf in the following areas;

Lobbying to Improve the Appeals Process
CVS have appointed GK Political to help speed up the process with which the Valuation Office deals with business rates appeals. This will be done by taking concerns about the operation and management of the Valuation Office directly to Ministers and senior civil servants to ensure that MPs stand up for the local businesses they represent and who are facing uncertainty because of the failures at the Valuation Office. GK will be applying political pressure to make sure the VOA accelerates the process of dealing with appeals.

Understanding and Influencing Business Rate Reform
GK Political is advising CVS on all political and policy developments around business rates. This will ensure that CVS are able to understand exactly how local collection of business rates by councils could affect you. The Government is planning to localise the collection of business rates so that local authorities can keep what they raise. GK will help CVS understand which local authorities will be winners and losers and what the implications will be for clients in different parts of the country. GK are working to ensure that the appeals process is not undermined by this reform and that you can be certain that you will get a fair deal on business rates whatever the operation of the new system.

Planning for the next Revaluation
GK is also helping CVS to plan for the long term by analysing the process for putting together the next rating list. GK will help CVS to understand the interaction between civil servants, Ministers and political advisors and the VOA in implementing the new list. As a result, CVS will be able to react more rapidly to the eventual publication of the new list and help clients understand exactly how they should deal with the Valuation Office and the wider appeals process.

Bringing Clarity To Rating Appeals

Ratings appeals can be complex so to help you understand the ins and outs of the process and how we achieve reductions with the Valuation Office, Tony Eden one of our Senior Rating Consultants explains...

The first stage of a dispute would be the valuation tribunal, which is administered by the National Valuation Tribunal Service. The hearing would be held as close as possible to the property under appeal and there are no provisions for the successful party to claim their costs from the losing party.

Procedures at the valuation tribunal are formal; however ratepayers can choose to represent themselves or can be represented by a surveyor – a role which CVS often fulfils for its clients.

The next stage is known by the rather grand title of the Lands Chamber of the Upper Tribunal but there are very few appeals that would proceed to this point as the process becomes much more formal and there are substantial costs incurred if the appeal is lost.

If an appeal is successful then costs can be recovered from the other side, but this will depend on the circumstances of each case. As a result of this, most cases that reach this stage would concern large sums of rateable value or matters of much wider principle and interest. The parties will also usually have legal representation.

For the smaller case there is what is known as a Simplified Procedure, where a ratepayer can be represented directly by a CVS surveyor, and the usual arrangement is for each side to bear their own costs of the appeal.

It costs £250 to lodge an appeal to the Lands Chamber and as the appeal goes through its judicial stages further payments must be made to the tribunal. For example; a hearing fee is based on 5% of the final rateable value with a minimum of £250 and up to a maximum of £5000 having to be lodged for the appeal to proceed to the final stage.

The power to award costs to the successful party, summon witnesses, manage cases, make directions and so on is given in a statutory instrument - 2010 SI 2600 – but much of the detailed procedures are to be found in the Chamber’s own Practice Directions that were last issued in November 2010.

These directions enable the tribunal to carry out its functions such as, exercising discretion in awarding costs, setting out the time limits at each stage of the appeal and how matters of expert evidence shall be dealt with. The procedures largely follow the Civil Procedure Rules adopted by other courts and tribunals, and can be very discouraging for the unrepresented ratepayer.

Because of the possible cost burden that may be incurred if the appeal is lost, appeals to this level should not be undertaken lightly. A CVS surveyor will carry out a risk assessment, look at the potential costs and savings and make a recommendation to the client, but the final decision as to whether to press on with the appeal to this level lies with the client.

Over 90% of rating appeals lodged with the Valuation Office will be resolved by agreement or withdrawal without ever troubling the court system. However, if the ratepayer’s agent cannot reach an agreement with the valuation officer who is dealing with the assessment, the dispute has to be resolved by an independent body and can become a long and costly process.

Turning a Negative into a Positive

All property is unique, if only by location. Most of the time people are looking to boast the positives of a property by extolling the virtues - with most estate agents having a reputation of perhaps looking through rose tinted glasses at any property they are selling. However, when valuing a property for rating purposes a surveyor looks for negatives – problems and differences that differentiate a property from the ‘norm’ and provide a distinction so if negotiations on ‘tone’ fail what is known as an ‘end allowance’ can be argued for.

End allowances on offices alone can vary dramatically from construction, size, number of toilet facilities and shape to more specific items including access from the rear and low entrances. They can also be quite bizarre such as a leaking fuel pipe found underneath a property. A fuel leak must have been outside the responsibilities of the occupier and could not have been a repair that the occupier should have undertaken otherwise the Valuation Office would not have conceded a reduction.

Any ‘self inflicted’ problem with a property for example a leaking roof or faulty heating would not result in a reduction unless it could be argued as beyond economic repair. If the method of heating however is insufficient to heat the property in question then an allowance could be argued – something that has recently been successfully and argued by CVS Surveyor Harry Pitt, on a commercial unit in the East Midlands.

“The reasons for an end allowance are extremely varied and that is why an experienced Rating Surveyor is essential to give your property the correct attention it needs in order to receive a reduction in business rates.”

Don Baker FRICS, IRRV
National Head of Rating

Rugby Rivals United by Business Rates!

In the past year, the cost of Business Rates has ratcheted up and now represents a significant financial overhead. According to research by CVS which is headed by Wasps’ Chairman Mark Rigby, the average increase across the Premiership is 129%.

The hike reflects the increase in turnovers at the leading clubs in today’s professional era because Business Rates are linked to the overall performance of the occupying business and how they use their property assets to drive turnover.

The good news – from the clubs’ perspectives – is that Business Rates charges can be contested and savings can be made. That’s what’s bringing Quins’ and Wasps’ Chairmen together. Quins has recently appointed CVS to act on its behalf.

Mark Rigby explains: “Commercial property in the UK is liable to Business Rates and the stadia and infrastructure that professional rugby clubs use is no different. What is different is the way that Business Rates charges for these clubs have jumped up in the last 12 months. This is because the Government has published a new Rating List which ascribes new values and charges to club property assets. This happens every five years and means the Government has re-based the value it is putting on rugby club property assets because of the way clubs are now using these assets. Put simply, the Government has caught up with how rugby has changed as a sport and a business in the last five years and the new Business Rates reflect this.”

It’s not just Quins that are facing up to the challenge. Research by CVS suggests that, while the average increase across the Premiership is 129%, some clubs are being even harder hit. Harlequins rates bill has leapt by 135%, Saracens’ by 167% and London Irish’s by a massive 264%. The hikes mean that the total cumulative rates bill – or Government tax take – from Premiership clubs has gone up by more than £2 million.

Mark Rigby adds: “Professional rugby is big business and that means the tax man is inevitably going to be after a piece of the action. Looking at Business Rates, it’s no surprise that the Government has hiked these up because clubs are using their stadia to generate significantly higher revenues than they were just a few years ago. What CVS is advising clubs to do is to think twice before paying the bill. Our experts have seen many examples of the Government using calculations to determine the Business Rates charge which we disagree with. In that respect, rugby clubs are just like any other commercial occupier. They can appeal their rates and, with a well-argued case and appropriate evidence, reduce their bills. At CVS, we understand the full complexity of the process and we can help clubs to cut through the red tape and to reduce their bills. As a Wasp, I may not say this very often but I am delighted to be working with Quins and CVS is working hard to secure them a reduction on their new Business Rate charges.”

Something must be up if Harlequins are turning to a Wasp for help. The issue uniting these old enemies is Business Rates, charged on stadia and clubs’ fixed property assets.

Focus On; North West and Regional Round ups

The North West have been successful as a team in getting whole schemes of properties re-evaluated with a lower rate per m² by presenting the right factual evidence to the Valuation Officer and interrogating their own evidence.

The team also continue to take the argument to the Valuation Officer where there is an oversupply of property in the locality; this could be for a parade of shops, offices in large towns or industrial estates where rents have fallen significantly over the past few years.

Helping to keep the North West team at the top of their game are a number of new recruits. Several new appointments have been made including Keith Stevenson MRICS, who joins CVS with a wealth of experience from his many years at the Valuation Office in Liverpool.

Keith was responsible for the commercial rating revaluations of all offices in the Liverpool Billing Authority Area which included settlements of rating appeals of all high profile office assessments - with many in excess of £1M RV.

Keith also worked as a Group Licensed Property Specialist, coordinating the Rating Valuation Approach for all Public Houses covered by the Liverpool Group Office for the last three revaluations. His responsibilities included the training, guidance and development of a team of Licensed Property Caseworkers.

Also joining the North West CVS team is Julie Chalmers MRICS. Julie was a Scottish Assessor and managed a portfolio of work within statutory timetables and performance targets in accordance with the Lands Valuation Acts and the Local Government Finance Act 1992. Julie managed an appeal caseload undertaking negotiations with ratepayers and agents along with preparing cases and providing evidence at the Valuation Appeal Committee in Scotland. Julie has had an impressive start to life at CVS with some great reductions on Caravan Parks and Day Nurseries in North Wales achieving Rateable Value reductions in excess of £46,000 over the last month.

Mark Fenemore has joined the North West team as an Assistant Surveyor. Previously at ATL Surveys for eighteen months carrying out inspections and measurements of property, he is currently in his third year of a part time degree in Surveying.

Successes include:
• Office assessments being reduced in Newton-le-Willows from £140.00 per m² to £120.00 per m²
• Large industrial premises reduced from £23.00 per m² to £18.00 per m² in Skelmersdale
• New industrial estate in Runcorn from £60.00 per m² to £50.00 per m²
• Offices in St Helens from £138.00 per m² to £105.00 per m²

Tania Hible appointed Regional Director

Tania joins CVS from the Valuation Office where she worked for over 24 years; the most part of which specialising in Rating.

Tania brings a wealth of experience to her new role at CVS and has a remarkable career to date which has seen her rise through the ranks of the Valuation Office from a Cadet Valuer to a Principal Valuer and personally setting up and developing NVQs in partnership with the Institute of Revenues Rating and Valuation (IRRV) which recognise the experience of the valuation technicians at the VOA.

Tania specialised in Rating at the London City Group VO and was the Officer in Charge and Team Leader of the Tower Hamlets VO. Tania headed a team who dealt with offices within the prestigious Canary Wharf area, where her team looked after some of the largest commercial property appeals in the country as well as the council tax for the region.

Tania also went on a secondment to HRMC as a Programme Manager and on to manage a Programme Management Office gaining valuable experience in Change Management in an organisation of close to 80,000 staff. Tania returned to the VO at the end of her secondment to become the Centralisation Programme Manager where she used her experience to centralise a number of rating processes.

This breadth and depth of experience and knowledge ensures that clients could be in no better position to be advised on their business rates and can rest assured that they are in the best possible hands for any rating appeals.

Tania is joined by Bela Owoh and Michael Clayton, both Graduate Surveyors who joined the team in July for the London and South East regions.

Tania Hible, Regional Director

Mark Rigby Appointed Chief Executive

CVS are a growing business and, by focusing on supporting our clients with straightforward, practical and professional advice, we’re building our presence in the market. So that we can do more and offer an even better and wider service, we’ve added more firepower to our management team.

On 1st October, Mark Rigby was appointed as Chief Executive with a brief to lead our expansion drive. Mark, an ex-Captain of Wasps Rugby Club and current Chairman, brings with him 25 years of commercial property industry experience.

The move comes as part of a number of changes taking place to support CVS’ ambition to grow and continue improving its performance. Tony Ford of Ford Campbell Corporate Finance and Peter Chappelow previously of the Thomson Travel Group have both joined the Board, adding further experience and expertise alongside Mark Walker, CVS’ Financial Director.

Today, CVS is one of the fastest-growing property services companies in the UK. By concentrating on customer service and delivering clear financial results for our clients, we want to expand our team and ensure we can give our clients the very best.

Our plans for expansion are based on delivering successful business rates appeals for over 36,000 clients nationwide.

“This is all about delivering results and a first rate service for our clients. By doing that, we’re looking to grow our client base as well as do more for our existing clients – I am confident the investment we are making in the business in terms of personnel and management will help us to achieve that goal.”

Mark Rigby, Chief Executive

2010-15 Rating List
six months in – are you making the most of your opportunities?

It’s now more than six months since the publication of the 2010 Rating List. While many of you have already seized the chance to contest your liabilities, others may not be fully aware of the options available to them.

Crucially - for the purposes of saving your business money - the 2010 Rating list was compiled from market rents as of 1st April 2008. Consequently, there can be significant discrepancies between those valuations and today’s true picture.

As you are well aware, the UK economy has witnessed substantial volatility during the past two years with the falling of property prices. The differential between estimated and true values for individual properties offers a ready opportunity to negotiate savings. In particular, businesses in the leisure and service
sector have been hard hit by the downturn. We believe significant savings can be recovered within these areas.

We are using our extensive comparable database to evaluate where and why clients should be paying less. It gives us the knowledge and the precedents with which we can argue your case and negotiate lower settlements on your behalf.
“The key is to act now,” according to CVS’ Operations Director, Andy Myers.

“The fast moving companies have already embarked on appeals and we’re seeing significant opportunities to reduce their costs and return savings to them. At a time when everyone is gearing up to emerge stronger from the recession, having that extra cash is helping them invest for the future rather than pay for the past.”

Andy Myers, Operations Director

Unravelling Empty Property Legislation
– the ‘Need to Know’

Picking your way through the complexity of empty rates legislation can be a minefield. Confusion is causing many companies to miss out on opportunities to save money. It doesn’t have to be this way.

Below is a simple guide to help your business understand how empty property legislation can protect you from paying unnecessary business rates overheads.

So, if you have an empty property or have recently rationalised your workspace, you might be in line for a rebate. Here’s the information your business needs to know:

Void Rate Legislation
There are two pieces of legislation which govern business rates and their application to empty property, the first of which is Void Rate and the second of which is Part-Empty Void Rate. The first of these legislations covers instances when commercial properties become empty or unoccupied and are then entitled to a three month void period where no business rates are payable. Although there are always exceptions to the rule, typically, most commercial properties such as shops and offices to sports facilities, car showrooms and many more enjoy a three month period rate-free.

However, if you have an industrial property such as a warehouse, the business rate exemption can be increased up to a period of six months. Once the void rate period for your property has passed, you will resume paying business rates at the full rate and this will apply to your whole property.

Once the 3 or 6 month void rate period has expired all is not lost if your property remains vacant. There are ways in which you can obtain further empty rates on your property.
Part-Empty Void Rate Legislation
The second piece of legislation is Section 44A of the Local Government Finance Act which has provisions for partly occupied premises, where empty parts of your property can enjoy an exemption from business rates for three months (again, six months for an industrial property). After this period has elapsed, full business rates liability will apply to the whole of your property. This relief is applied on a purely discretionary basis by your billing authority, based on the information supplied to them. The decision can be influenced given CVS’ excellent relationship with the authority and as a result of this, it is highly likely that we will obtain relief on your behalf.

Once any void rate period has expired there are a number of alternatives we can consider to reduce your rates liability further.

If you have an empty or part vacant property, we can help. Speak to your CVS Client Support Advisor for more advice. We have helped clients submit retrospective applications to the Valuation Office Agency (VOA) for the rebate of business rates already paid on empty properties. We are also currently contesting limitations placed against part-empty void rate periods to support businesses in their recovery from the economic downturn.

“Don’t be afraid to ask for our advice. Where there is an empty property, the chances are that there’s an opportunity for a rates saving. The legislation might be complex but the savings can be very tangible.”

Andy Myers, Operations Director

Affiliate Scheme
launched to allow clients to pass on CVS rates reduction benefits to their clients

We’re proud of the services we offer and to
expand the ways in which firms can access CVS’ business rates expertise, we’ve launched a new Affiliate Scheme.

The aim of the innovative CVS Affiliate Scheme is to help as many commercial organisations as possible to save unnecessary expense on their commercial property rates bills.

The scheme is based on the principle of partnering closely with professional service providers that offer complementary services to our own. It is designed to widen access to our services and help our affiliate partners to provide their own clients with an opportunity to reduce their business rates.

For those who become affiliate partners, the scheme offers:

• a method of reducing costs for their clients
• an increase in the quality of their client relationship
• an opportunity to refer a recognised quality supplier
• a way of increasing their product offering

without upfront investment or cost.

The scheme was unveiled at the 2020 Group’s 12th annual conference in September. The 2020 Group is the UK’s largest voluntary membership organisation for accountants. This is one of the core professional service sectors the scheme is intended to benefit, alongside lawyers, independent financial advisers and facilities management firms.

CVS Manager, Claire Hayes, who is heading the initiative said: “CVS are focused on helping clients to save money and reduce their property overheads. This is a valuable service at any time – but even more so when the UK is facing tough economic challenges, when every pound counts. Firms are increasingly looking for innovative solutions to reduce costs and trusted professional advisors to approach.”

“Our affiliate scheme is a simple yet effective solution for organisations to tap into our expertise, enhance their service offering and gain their clients beneficial results. It’s a scheme with obvious attractions for everyone involved.”

Claire Hayes, CVS Manager

CVS sees Hike in Demand for Rating Audit Services

To support your business’ need for continually reviewing ways to reduce costs, CVS offers a comprehensive Rating Audit service. This allows you to gain a Rating Audit without any upfront costs or risks. Business rates auditing is a specialised service and must be carried out by experienced billing and valuation experts. The service is not associated in any way with conventional rating appeals so, if your business is dealing with its rates appeal already, we can compliment this work.

A Rating Audit, in simple terms, is an historical forensic analysis of a company’s business rates liability. This usually involves examining the rates bills they have received from the local billing authority for accuracy and rectifying them where appropriate.

However, unlike many other rating agents, at CVS we go a little further than this. We look at other angles which can provide additional savings for existing and potential new clients. This involves analysing the historic valuation office data, not only relating to the property in question but also other similar properties in the vicinity. We examine whether they have benefitted from a reduction in rateable value that should also apply to your property.

Our review of the historical changes in rateable value goes back as far as 2000/01 to see if there have
been any missed opportunities to generate additional savings.

Once savings have been identified, our Rating Audit specialists calculate the potential overpayment and challenge the authorities in order to recover these sums quickly and effectively. No long, drawn out appeals are necessary and no property inspections are required in order to secure these savings. It is a
risk-free service as the rateable values cannot, by legislation, be increased retrospectively.

Valuation Office’s Steve Bassett joins CVS

Professional expertise is the bedrock of our business. To ensure we continue to offer intelligent, professional and effective solutions for our clients, we are expanding our team and are delighted to announce the appointment of Steve Bassett.

Prior to CVS, Steve’s career at the VOA saw him working in Doncaster, Leeds and with the Agency’s London Support Unit dealing with business rate appeal cases. Steve also worked with the Specialist Valuation Unit of the VOA, valuing industrial properties throughout the UK including oil refineries, steel and chemical works. During this time, Steve’s work included a number of high profile cases such as Sellafield Nuclear Processing Plant, where Steve’s remit encompassed identifying the rateable value of the plant and machinery.

Andy Myers, Operations Director at CVS explains: “We’re a growing business that’s focused on employing the right people who can deliver the right results for our clients. We recruit from the leading private sector organisations but equally from the VOA. That helps us to stay ahead of all of the developments within the VOA. Steve’s appointment is just another example of the high calibre of surveyors we employ to broaden our expertise and ensure outstanding service for our clients.”

Know your Dates - key dates for your diary

Here are the ‘need to know’ dates for your diary. Don’t miss out – update your calendar now.

1st April 2010
Appeal negotiation period and programming commences for 2010 rating list
February/March 2011
Your local authority uses the new rateable values to calculate the business rates bills for the 2011/2012
financial year
1st April 2011
Cut-off date for 2005 Rating List appeals
1st April 2013
Antecedent valuation date for all new 2015
rateable values
October 2014
Details of the new valuations for 2015 will be sent to the majority of ratepayers during October

CVS Refreshes its Branding

Over the coming months CVS will be going through a number of changes to improve its service and support for its clients, which includes the inaugural issue of rates insight, the launch of a new interactive website and the development of more regular updates via email.

To ensure any communication you receive from CVS is clearly recognisable, we have made the decision to refresh our brand.

From December 2010 you will begin to receive letters and updates in our new navy blue brand representing the professional and quality service CVS provide. Below we have provided some examples of the branded communications you will begin to receive.

Update on the Valuation Office Agency Campaign

CVS has enlisted the help of GK Political to undertake a parliamentary campaign to draw attention to and speed up the processes of the Valuation Office Agency (VOA). CVS has estimated that the VOA currently has a backlog of over 328,000 business rate appeals, a third of which date back to 2005. This is simply not good enough, especially given this Government’s commitment to promoting enterprise and growth.

We believe that the best way to push the VOA into action is to use political pressure from central Government. By demonstrating the breadth of the problem in the VOA to the Minister responsible, David Gauke MP, we believe that the Government will be unable to ignore the problem and will compel the VOA to speed its processes up.

We are therefore asking CVS’ clients, with outstanding appeals, to write to their local MP asking them to raise the issue with the Minister. So far, we have letters going out to a number of key MPs with Cabinet Ministerial posts, such as Vince Cable, Mark Prisk and George Osborne, however the more constituency MPs we can get involved and the more letters we get in the post, the better.

If you would be interested in joining our campaign, please contact Fiona Mawer on either 0207 340 1150 or fiona@gkpolitical.com and she will provide you will all the information and resources you need. You will simply need to fill in your details and put the letter in the post- GK Political will take it from there if you wish.

Localisation of Business Rates

The Localism Act received Royal Assent on the 15th November 2011 and marks a significant cornerstone of the Coalition’s policy reforms. From the outset, this Government has been committed to a programme of decentralisation and localism, and this Act is the vehicle for their vision.

It is a vast and wide-ranging piece of legislation which, in general, simply lays the groundwork for a number of reforms aimed to give power back to communities and their Local Authorities. There is no final implementation date for the Act as such, as many of the different measures will all only come into force once they have been through further consultation and enshrined in secondary legislation.

Nevertheless, the policy environment in Local Authorities is set to change and the future landscape for business rates will be very different. The Government believes that giving Councils more freedom over their business rates will be a stimulant to local growth. The Act itself makes some direct reforms to business rates policy such as giving Local Authorities the freedom to reduce the business rates of any local ratepayer, beyond those who are currently eligible for discretionary relief. It also amends the rules on business rate supplements so that, in the future, impositions and variations will require a ballot and gives a new power to the Secretary of State to cancel liability to backdated business rates in relation to the 2005 ratings list.

Local Authorities will be given the freedom to reduce the business rates of any local ratepayer, beyond those who are currently eligible for discretionary relief. The Local Authorities will, however, be responsible for funding these additional reliefs but the Government will maintain their part-funding for discretionary reliefs. It is hoped that Local Authorities will make a cost benefit analysis for these local discounts and will absorb the short term financial costs in anticipation of the longer term gains for the local economy. How this will play out in reality is yet to be seen.

The Localism Act also aims to remove burdens for SMEs. Clause 70 of the Act will come into force in time for the 2012-13 financial year, removing the legal requirement for ratepayers to submit an application in order to claim Small Business Rate Relief. The single occupancy criteria will also be removed for using the small business multiplier in 2012-2013 onwards. The most significant change to business rates, resulting from the localism agenda is yet to be encased in legislation. The Localism Act gives Local Authorities a general power of competence, which will pave the way for the Government’s proposals for Local Authorities to collect and keep business rates from their locality. This ‘rates retention scheme’ has recently been through a consultation process which closed on the 24th October this year. Instead of paying rates into a central pool, Local Authorities will be able to keep a proportion of what they collect. This will work on a tariff and top-up scheme, with those Councils who see growth, paying a tariff to central Government as a ‘safety net’ to pay Councils who fail to generate sufficient growth as a top-up.

The proposed new, localised system has spawned concerns across the board about its effects on local economies, especially in areas where business does not thrive and less rates are collected. As opposed to encouraging growth, it is feared by many that this will in fact stifle the local economy as Councils struggle to meet the deficit from what they would have received under the current system.

Although these new proposals should not affect the functioning of the Valuation Office Agency, where business rates appeals are currently processed, anxieties are beginning to develop amongst civil servants about how the new system will work. At present, a residual surplus is set aside from the centrally collected rates in anticipation of rates appeals and refunds. It is currently unclear how this budget for refunds will be calculated once collection is localised. We await the full policy document with baited breathe to see how these difficulties will be averted.

CVS will be following the evolution of the localisation of business rates closely and will strive to keep you informed of any policy changes that may affect your rates.

Patisserie Valerie

The bittersweet taste of the Patisserie Valerie expansion...
CVS have been instructed to look into the increasing business rates liability of an expanding high street favourite.

Patisserie Valerie was originally conceived in Frith Street Soho in 1926 by Madam Valerie. She came to London on a mission to introduce fine Continental Patisserie to the English. It was an instant success. During the Second World War the Frith Street premises were bombed by the Luftwaffe and Madam Valerie subsequently set up shop around the corner in Old Compton Street where her legacy continues to this day in their Soho branch.

Patisserie Valerie has grown steadily since the takeover by the three Scalzo brothers in 1987 and now has 84 properties in the portfolio all of which, like the rest of the UK’s commercial properties, have been subject to ever increasing business rates.

Andy Singleton, Head of Real Estate at Patisserie Valerie comments that “business rates have always represented a significant overhead to us as a growing company. With plans for a further 18 sites in 2012, overvaluations, if only by a small amount, have adverse implications on store contributions and cash flow.”

Companies such as Patisserie Valerie are shining beacons in a gloomy and unstable economic period which has seen some businesses implode under the intense financial pressure created by the recession. Consequently any potential savings that can be made, on what seems like an ever increasing tax bill, have been welcomed with open arms and could be the icing on the cake of a remarkable expansion story set in a time of fiscal hardship for many on the high street.

CVS, were instructed to look at Patisserie Valerie’s rating liability in September 2010. From the individual site analysis undertaken on the properties it was established that there had been a significant increase in the total rateable value of the portfolio from £4.04 million in the 2005-2010 rating list to £4.84 million in the 2010-2015 rating list. The average increase of 23% in rateable value is set to have parallel financial implications on the amount of business rates that are payable on an annual basis.

Andy Myers, Operations Director at CVS comments that “the starting point for our surveyors was to gain an accurate representation of each of the Patisserie Valerie stores. CVS are in a position of strength with an enviable nationwide coverage of RICS and Ex-Valuation Office surveyors to call upon. This ensures that we can obtain a wider perspective on how the property sector has been affected on a national basis whilst making certain that any local rating inconsistencies are taken into consideration through use of a surveyor who has prior knowledge of the area.”

The complex nature surrounding the appeals on the stores can range from potential issues with store layout and altered usage of parts of the store to understanding the detrimental monetary effect of any potential disruptions to footfall. Ensuring you have a surveyor with a full comprehensive knowledge of the rating system and the local area is a recipe for success.

This success has not gone unnoticed with recognition of CVS within the Sunday Telegraph 1000: Britain's Brightest Businesses - A celebration of the 1,000 mid-sized companies which have weathered the economic storm and are set to be the foundation of the UK's recovery.

Although savings have yet to be acquired from the conventional rating appeals that have been lodged on behalf of Patisserie Valerie, the Rating Audit division have already identified significant savings from the 2005 list which are currently being processed.

As for the service provided by CVS, ultimately the proof is in the pudding when it comes to savings obtained; however as a company we strive to excel within our specialist field to ensure that there is a sweet ending for all involved!

The complex nature surrounding the appeals on the stores can range from anything from potential issues with store layout and altered usage of parts of the store to understanding the detrimental monetary effect of any potential disruptions to footfall. Ensuring you have a surveyor with a full comprehensive knowledge of the rating system and the local area is a recipe for success. This success has not gone unnoticed with recognition of CVS within the Sunday Telegraph 1000: Britain’s Brightest Businesses - A celebration of the 1,000 mid-sized companies which have weathered the economic storm and are set to be the foundation of the UK’s recovery.

Meet the Team

Supporting your business by providing industry leading customer service Why is the CVS service proposition so unique?

The Team We’re not just a handsome bunch!
Our professional Client Service support team now totals 40 customer focused individuals who are committed to deliver the level of support your business needs. Over the past few months we have invested enormously to increase the team size, support technology and systems along with training and development and raising the quality standard of our support.

Dedicated Account Manager
From the moment you instruct CVS, your dedicated Account Manager is your single point of contact during the life cycle of your appeal. Your Account Manager takes responsibility for liaising with your dedicated Surveyor and the Valuation Office and then keeping you fully up to date with the progress of your appeal. Appeals can sometimes be quite lengthy and complicated, so your Account Manager will take responsibility for ensuring you understand the relevant information and keeps you up to speed on progress.

Your Feedback
Over the coming months we will be looking for your feedback. To enable us to consistently deliver your expectations we will be asking you for your views and opinions, on the end to end quality of service we provide. We need you to tell us what we do well and what we could improve upon. We appreciate how busy you are but just a couple of minutes of your time will help us to ensure we deliver against your expectations.

Accreditation
Our aim is to deliver the best possible service proposition within the marketplace. To verify that we do, we have now partnered with the Institute of Customer Services. The Institute is committed to greatly improving the overall standard of customer service within the UK. In 2012 the Institute will audit our entire service proposition and benchmark our quality against the leading businesses within the UK. Our aim is to achieve the Institute’s national accreditation status.

Additional Support
The support doesn’t stop once your appeal has completed. Another benefit of having the dedicated support of your Account Manager is that we can advise you of additional services available from CVS. From support with Rent and Lease renewal to historical auditing, we have industry leading professionals within the CVS team available to continue to help your business to save.

Steve Holcroft
steveholcroft@cvsuk.com
Head Of Client Services

Regional Round Up

North West
The North West team have had numerous successes on the 2010 rating list with some very good reductions achieved on trade based properties.

• In respect of Public Houses the team have achieved a reduction on a town centre pub in Halifax which was reduced by nearly 30% in rateable Value from £70,500 to £50,000 and a city centre pub in Manchester was reduced from £148,000 to £81,500 Rateable Value a reduction of circa. 45%.
• The team have also dealt with a number of caravan parks and have achieved a reduction from £39,700 to £30,700 on a site in Anglesey and a Hotel and Restaurant in Wallasey from £85,500 down to £77,000 rateable Value.

The North West team has also grown by one with the recruitment of David Myerscough who joins us from a commercial practice in Preston and brings with him over 20 years of property experience.

North East
The North East team has not seen any changes to the surveying compliment since the last update, however as a team they have continued to produce some significant reductions throughout the region.

• Offices at Barlborough Links were reduced from £130/sqm to £100/sqm which equates to nearly 30%. These reductions have subsequently resulted in decreased rates liability for our clients in the local area. This trend is not just local to Barlborough with Paul Burnett continuing his pursuit of office reductions in Leeds where he has highlighted that those situated on the town boundaries have been overvalued at a similar level to those in Barlborough Links.
• North East Regional Director Dennis Broughton has recently achieved a staged reduction for an Old Chemical works from £191,000 to £146,000 and has seen similar reductions within Buxton for another chemical factory where the reduction totalled £27,000 from £165,000 down to £138,000. These reductions were achieved based on the identification of comparative evidence from similar sized properties all over Derbyshire.

Midlands
The Midlands has seen the addition of two new surveyors in Michael Powell and Paul Walmsley to increase our capabilities within the region. There have also been numerous excellent reductions with our pick of the bunch highlighted below:

Following negotiations with Kidderminster Valuation Office, a 23.8% reduction in Rateable Value was secured from £260,000 to £198,000 for a two storey office block situated close to Merry Hill Shopping Centre in Brierley Hill. This large reduction was obtained by a CVS surveyor, Adam Cole, on the grounds that the Valuation Officer over assessed the Rateable Value on the whole Waterfront office development as at the antecedent valuation date for rating purposes - 1^st April 2008.

South East
The South East team have once again had some excellent reductions over the final quarter of the year. Two notable reductions from this region have been highlighted below:

• Philip Emerick has negotiated a fantastic 57% reduction in rateable value for Lymington Harbour Commissions reducing the original valuation of £45,000 to £19,000. This was achieved through Philip’s extensive analysis of the income receipts as far back as the 1st April 2005 with the correction made to reflect the actual income for the floating moorings.
• Adam Handley has agreed a 12.2% reduction for an office in Loughton from £164,000 to £144,000 after a tonal negotiation on main office space from £98.18m² to £86.63m²

South West & Wales
With the recent opening of the Bristol office, there has been a particular focus on the development of the South West and Welsh region. Since the last update, the surveying complement for the South West and Welsh regions has grown following the recruitment of three new surveyors:

David Fulvio BSc (Hons) MRICS

David graduated from the University of Bristol in 2007 with a BSc (Hons) in Property Management and Investment before moving on to work for DTZ in London. Whilst at DTZ, David worked with some household names in Barclays, W H Smith and House of Fraser to name but a few and he was involved with the acquisition and disposal of retail and leisure properties. More recently David has become a member of the Royal institution of Chartered Surveyors.

Richard Scott BA MSc MRICS

Richard completed his initial Planning and Hotel Management course before undertaking an MSc in Real Estate Management at Oxford Brookes University. Richard then moved into a position as a Development Manager for Midshire Estates where his primary focus was the management of property portfolios and the development of opportunities for family owned businesses. He offered full support with regards to Rating Appeals, Rent Reviews and Lease Renewals, whilst also negotiating with fellow surveyors and solicitors to achieve acquisitions, lets and sales on behalf of his clients.

Paul Ellis IRRV (Tech)

Paul joins us from the Gloucester Valuation Office bringing with him a wealth of experience he has amassed over his 34 year career with the government agency. As an experienced Rating caseworker Paul managed a wide and varied class of property but over recent years has specialised in industrial property. This said Paul has retained an involvement with numerous other property classifications including car parks, health centres, local authority schools, libraries, equestrian property and golf courses. Having represented the Valuation Office on numerous occasions at Valuation Tribunals, Paul’s experience will not only benefit the South West surveying team but benefit those who matter the most, our clients.

It’s fair to say that the three new CVS recruits have hit the ground running. During their short period with the company they have managed to acquire savings of over £175,000 for our South West based clients.

Key Success In the South West region

Following negotiations with the Plymouth / South West Valuation Office, a 40% reduction in Rateable Value was secured from £45,000 to £27,000 for a hotel based in Devon. This outstanding reduction was obtained by CVS Surveyor, Russell Hobbs, on the grounds of over-trading identified by a full analysis of turnover in comparison to similar sized properties in the area.