Firms should not pay aggressive demands over business rates discount, Minister assures Simon Danczuk

Simon Danczuk MP

Rochdale MP Simon Danczuk has obtained assurances from the Government that businesses targeted by surveyors demanding hundreds of pounds from a Government business rates discount will not have to pay up.

Mr Danczuk recently sought a meeting with consumer affairs minister Jo Swinson after businesses from all over the country came to him to complain about aggressive demands being made by RVA Surveyors, at the time based in Heywood, now understood to have moved to Denton.

As chairman of the All Party Parliamentary Shops Group, Mr Danczuk was concerned to hear that numerous shops had received court threats unless they paid up to 50 per cent of the Government’s business rates discount. RVA Surveyors had initially approached the businesses asking if they wanted them to act on their behalf to get a reduction in business rates. They went on to demand payment from firms that had benefitted from discounts resulting from Government policy rather than from any work undertaken by RVA.

In a letter to Business Minister Jo Swinson, Mr Danczuk described the actions of RVA as “immoral and unethical” and asked that the Government looked into the legality of their demands. Mr Danczuk and Ms Swinson have now met to discuss the issue, with Ms Swinson advising businesses not to give in to the demands of RVA.

A note prepared by the Department for Business Innovation and Skills concluded that: “Businesses that have contracted with RVA are advised not to make any payment.” This is because: “The government’s action is not a reduction in Rateable Value.”

The note also advises businesses to report any demands by RVA to the Insolvency Service and to Action Fraud.

Speaking after the meeting Mr Danczuk said: “Businesses up and down the country have been struggling in the recent economic climate, and to see them targeted in this way by predatory firms like RVA really is disgusting. I am glad that the Government have advised businesses not to pay up and hope we will see tough action against firms like RVA.”

When Mr Danczuk first hihglighted the actions of RVA Surveyors in January they issued a statement strongly disputing Mr Danczuk's allegations and said they were seeking legal advice and would be contacting him directly. No such contact has been forthcoming.

http://rochdaleonline.co.uk/news-features/1/business-news/93648/small-businesses-being-targeted-over-government%E2%80%99s-business-rates-discount-says-simon-danczuk