Minerals and Waste Management Business Rates

Pay the correct business rates

The minerals and waste management sector plays a vital role in UK’s economy and environmental sustainability. Yet, the shifts in property values and construction costs are increasing business rates liabilities. These various rises in business costs make it harder for businesses to operate profitably. Now more than ever, it is important to be aware of potential savings or unexpected costs that may arise from changes to business rates liability.

Our specialist Minerals and Waste Management team works with various clients, ranging from larger mining companies to independent smaller operators, ensuring the business rates they pay are accurate and manageable. We are here to provide certainty for budgeting and forecasting, to look for potential savings, and to minimise any risk and ensure compliance.

Impact of Revaluation 2023 on Minerals and Waste Management

Since the 2015 valuation, rental values and construction costs have significantly risen, impacting the 2023 Revaluation with major increases in rates for minerals and waste management facilities. Particularly in major cities, some property types have seen substantial rental hikes. On average, rate assessments have surged by 40%, with some individual property assessments increasing by over 150%. Some property types, such as brick and tile works, have seen an average increase of up to 86%. These increases have been considerable, though some of these assessments may not be accurate.

Accuracy of assessments and billing

Business rates assessments for minerals and waste properties can be very complex. Valuations are broken down in scrupulous detail, and it is in the ratepayers’ best interest to ensure these assessments are accurate to avoid paying for inaccuracies.

There are specific reliefs available in certain circumstances. However, transitional phasing relief for quarries can be complicated due to changes in extraction rates. If not calculated correctly, operators may miss out on transitional phasing and be hit with a significant step-up in rates liabilities.

The revaluation date for the 2023 Rating List also calls into question the accuracy of assessments. Based on the rateable value of properties on 1 April 2021 (England/Wales) and 1 April 2022 (Scotland), the assessments of the 2023 Rating List reflect the impact of the pandemic on the sector. However, not considered in these assessments are the effects of exceptional economic turbulence, including Brexit and the cost-of-living crisis experienced since 2021.

Rising costs

As the sector aims for resource efficiency and waste minimisation, regulatory measures promoting sustainability are increasing costs.

Quarry operators have been saddled with increased operational costs, especially since it was prohibited in April 2022 to use red diesel in mining operations.

Construction costs have also seen a significant rise in the past few years due to restricted raw material supply.

Other costs associated with new government initiatives, such as biodiversity net gain, also create various expenses for businesses to contend with.

All these rising costs have been a huge blow to quarry operations, further exasperated by increasing business rates liabilities.

Regulatory compliance

England and Wales

Non-Domestic Rating Act 2023

The Non-Domestic Rating Act 2023 will introduce potentially onerous mandatory obligations on ratepayers to regularly update the tenure and physical details of all properties within their portfolios with the Valuations Office Agency (VOA).

Increasing the administrative burden on businesses, it will require prompt updates to the VOA and annual returns even where there are no changes, with penalty risks for non-compliance. The complexity of business rates management will increase with measures anticipated to be fully in place for the 2026 Revaluation.

Material Change of Circumstance (MCC)

Legislative changes to Material Change of Circumstance provisions took immediate effect in October 2023. They tighten the scope of MCCs in England so that new legislation, licensing regimes and guidance from public bodies will not be grounds for a change in Rateable Value between revaluations.

Completion Notices

For buildings that have been temporarily removed from the rating list during redevelopment, billing authorities will be able to issue Completion Notices in the same way as for a new building. The regulatory changes should be in effect from January 2024.

Scotland

Since January 2023, Scotland’s new legislation has transferred Valuation Appeals to the Scottish Courts Tribunal service. This entails strict deadlines and rigorous requirements for ratepayers and advisors. All appeals against valuations from April 2023 should have been submitted as a comprehensive case with supporting data by 31 August 2023. Learn more about how to appeal business rates in Scotland >

How we can help

Our experts in minerals and waste management rates combine extensive experience with industry knowledge. We deliver meaningful results for clients by leveraging market-leading data. Preparation is key to ensure your rates bill is both fair and reflected accurately in your budgets for the next financial year.

Review and Appeal

We proactively negotiate savings with the specialist Mineral Valuer at the Valuation Office Agency and the Scottish Assessors. We seek reductions in mineral royalty levels, plant rents and challenge detailed, cost-based valuations of rateable buildings’ plant and machinery.

Budgeting and Forecasting

We can provide a suite of bespoke reporting to assist your budgeting requirements and avoid any hidden surprises. Budgets can be provided to support projected liabilities over the life of the Rating List or Rating Roll, including annually changing mineral assessments, recharges and apportionments between business divisions, future capex spends, impacts of demolitions, checking rates bills and calculation of transitional reliefs. We build these to satisfy external and internal audit requirements.

Building Plant and Machinery

When constructing new facilities, the Mineral Valuer will often require an inspection of the property to create a property valuation. Our experts can accompany the Minerals Valuer during their inspection to ensure they receive the correct information to produce a fair and accurate business rates assessment.

Rent Reviews

Business rates liabilities are based on actual rental values at a certain point in time. Therefore, rents set on a property may influence the level of assessment for current or future business rates assessments on the property. Our team is experienced in dealing with rent reviews on minerals and waste properties and can act on behalf of operators for rent reviews.

Reliefs and Calculations

Reliefs are an important part of the business rates regime, allowing business operators to benefit from reduced rates liabilities for varied situations. These reliefs can be for periods when a property is empty, for when the assessment of a property drastically changes between Rating Lists or Rating Rolls, and when governments announce temporary relief schemes (such as the Covid-19 or storm flooding relief). Our team can review portfolios to provide and action strategies to secure and maximise rates reliefs where applicable.

Mineral Royalty Reviews

Because business rates assessments are based on property rental values, royalties payable at properties also factor into business rates assessments. Evidence is often difficult to establish, and reviews can be tough to navigate. Our team is experienced in dealing with royalty reviews at mineral properties and can assist in royalty advice and negotiation.

Historic Rates Audit

Overpayments made against business rates assessments can easily go unnoticed. Billing authority liability calculations can be difficult to understand and errors in calculations are easily overlooked. Our historic rates audit ensures that past errors and overpayments are resolved and refunded.

Dealing with several rating assessments can be overwhelming, particularly with monthly rates demands being issued by billing authorities (sometimes in error). Demands can be missed or overlooked when sent directly to a site and making payments on all properties can be difficult to keep a record of. Our RPMS team handle thousands of rates payments monthly and has a good rapport with many billing authorities, allowing them to secure refunds of overpaid rates and negotiate payment plans when required. RPMS act on behalf of a number of mineral operators in the UK, making regular payments to avoid summons being issued.

Mothballed Concrete Batching Plant

In 2018, a concrete plant was temporarily mothballed. We initially secured six months of mandatory Rates Relief, saving £5,000. The plant remained non-operational until 2021. We worked with the charging authority to extend the relief for the prolonged vacancy, leading to an additional saving of £25,000.

Archaeological and mineral working difficulties

A sand and gravel operator faced significant delays and escalated operational costs due to unforeseen archaeological discoveries. We gathered evidence to show these exceptional costs over a specific period. Our successful challenge led to a temporary end allowance on the mineral royalty part of the assessment.

Storms Ciara and Dennis 2020

Following the 2020 Storms Ciara and Dennis, the government launched the Flood Recovery Framework (FRF) to address extensive local flooding, particularly in North-West, Yorkshire and Midlands. We proactively contacted our minerals clients to identify affected sites, helped compile evidence of disruption, and secured £640,000 in flood reliefs for quarries, concrete, and asphalt plants.

Quarry operator faces unexpected, backdated rates liabilities

A Midlands operator faced backdated rates bills for two newly assessed quarries. Gerald Eve conducted a meticulous review of site operations, including all rateable buildings, plant, and machinery. After extensive negotiations with the Mineral Valuer, we successfully secured substantial backdated savings and continue to advise the operator on budgets to prevent future unforeseen costs.

£9.3bn

total Rateable Value handled

£1.3bn

client savings since 2017, £3.8 bn since 2010

25%

of the FTSE represented