Small shops are being pushed to the brink as they wait almost a year on average to challenge inaccurate business rates bills, new figures show.
Nearly 40,000 companies are still waiting for a decision from the Valuation Office Agency (VOA) after appealing against the rates imposed on their premises.
The average waiting time for appeals has risen to just under 11 months, up from six months in 2023, leaving businesses forced to pay higher tax bills while their cases are assessed.
Some companies are understood to have waited up to 18 months for their rates to be reviewed.
The delays come despite evidence that many appeals are successful. Of around 200,000 cases considered by the agency over the past three years, about one in four resulted in business rates being cut, suggesting significant errors in initial assessments.
Around 68 per cent of claims are being resolved within 12 months, compared with a target of 90 per cent.
Federation of Small Businesses policy chair Tina McKenzie said small firms should “not be kept waiting nearly a year to see if they’re being charged the right amount”.
“They should not be at the mercy of a system that assumes businesses are wrong until proven right,” she said.
“Paying a bill you believe is wrong then waiting months for a ruling leaves small firms stuck between a rock and a hard place.
“At a time where other costs are rising across the board, from energy to employment, delays like this add strain.”
The VOA, which is part of HMRC, is also expected to face further pressure from homeowners appealing valuations linked to the government’s proposed levy on properties worth more than £2m.
Liberal Democrat Treasury spokesperson Daisy Cooper said businesses were being failed by a system that had become “impenetrable” for many owners.
“It’s outrageous that businesses are having to wait for almost an entire year to receive decisions, which are often wrong, then appeal again to get a fair rating,” she said.
“It’s a structural disaster that is impenetrable for most business owners just trying to play by the rules.”
An HMRC spokesperson said: “We know that the speed of our service matters to businesses and we’re doing everything we can to clear cases as quickly as possible.
“We’ve taken steps to streamline our processes and we’re prioritising customers facing financial hardship.”
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