RVA Surveyors: Will the government’s fiscal statement soften business rates shock?
PRESS RELEASE: On Friday 23rd September, Chancellor Kwai Kwarteng is expected to reveal a ‘fiscal statement’ – in effect, a small budget expected to outline further tax cuts. It is also speculated that Kwarteng will reveal the estimated cost of the government plans to cap energy costs, for both domestic and commercial properties.
Business owners and leaders across the country will be hoping that this fiscal statement will include more information about the expected business rates hike in the next revaluation (from the 1st of April 2023). Business rates are set at each revaluation for a period of time known as a rating list. The current rating list, running from the 1st of April 2017 until the 31st of March 2023, was extended due to the pandemic in an attempt to ease the burden on businesses.
While the announcement of the next rating list changing to a period of just three years has already circulated, there is much speculation still as to just how much business rates will rise. Experts have widely predicted that business rates will rise by up to 12% – over £2 billion is the expected amount. This rates hike, in which the Valuation Office Agency’s (VOA) ballpark figure will be announced in the coming weeks, is another blow on top of increasing overheads, and decreasing help from the government.
Declining help from government another blow to businesses
In response to the pandemic, the government brought in a covid relief package for businesses across the UK. This £1.5 billion package was distributed to the affected businesses, at the discretion of local councils. A move that saw a very uneven delivery – with a predicted third of all businesses that applied for the covid business rates relief, received no help at all.
With the covid relief set to end in all but a few councils, business owners must turn to other avenues to seek help. Given that many other reliefs have also ended, it is no surprise that business owners and leaders are struggling to create savings in a notoriously outdated tax system.
Anthony Hughes, Managing Director of the business rates reduction specialist RVA Surveyors, said: “Business rates has seen an upwards-only trend for years, and we need to see from this fiscal statement from the Chancellor must contain effective pathways to help businesses manage the expected business rates hike. The government must step up and start delivering support, as well as building confidence in British businesses.”
3D Printing Technology Is Rising In The Modular And Prefabricated Nonresidential Building Construction Market
LONDON, Sept. 21, 2022: 3D printing technology is gaining popularity in the modular and prefabricated nonresidential building construction market trends. Modular and prefabricated nonresidential building construction companies are using 3D construction printing for creating construction components or to ‘print’ entire buildings. A construction 3D printer is a machine that can build facilities by depositing a material (concrete, for example) layer by layer. Concrete 3D printing, or “Construction 4.0”, is a similar 3D printing technology to the one that Fused Filament Fabrication uses. Paste-type material, such as concrete or earth materials, is pushed through a nozzle in layers to print buildings in 3D. For instance, the National Fire Protection Association’s Cheniuntai company is one of several that are already using 3D printers to construct houses, office buildings, and other structures worldwide.
The global modular and prefabricated nonresidential building construction market size is expected to grow from $62.57 billion in 2021 to $67.04 billion in 2022 at a compound annual growth rate (CAGR) of 7.1%. The modular and prefabricated nonresidential building construction market growth is expected to reach $88.20 billion in 2026 at a CAGR of 7.1%.
Increasing Infrastructure Development – A Major Driver For The Modular And Prefabricated Nonresidential Building Construction Market
Increasing infrastructure development is expected to drive the growth of the modular and prefabricated building system market during the forecast period. Modular construction involves producing standardized components of a structure in an off-site factory, then assembling them on-site. For instance, in September 2021, according to India Brand Equity Foundation data, an India based Department of Commerce, Ministry of Commerce and Industry, the Indian government announced road projects worth Rs. 1 lakh crore (US$ 13.48 billion) to develop road infrastructure in Jammu and Kashmir.
Asia-Pacific Was The Largest Region In The Modular Construction Industry
Asia-Pacific was the largest region in the modular and prefabricated nonresidential building construction market and was worth $27060.5 million in 2021. The modular and prefabricated nonresidential building construction market in Asia-Pacific is supported by government initiatives and by increasing investments in the countries of the region. For instance, in March 2022, Horizon Industrial Parks, which has a portfolio of logistics parks in India owned and managed by Blackstone Real Estate funds, is looking to expand its presence across key southern markets apart from tapping smaller cities. The company plans to invest more than INR 2,000 million ($260 million) to build 9 million sq ft of logistics facilities across South India over the next few years.
Willscot Mobile Mini Holdings Corp Was The Largest Competitor In The Modular And Prefabricated Nonresidential Building Construction Market
WillScot Mobile Mini Holdings Corp was the largest competitor in the modular and prefabricated nonresidential building construction market in 2021, with a 0.93% share of the market. WillScot’s growth strategy focuses on strengthening its business operations through strategic mergers and collaborations. For instance, in July 2020, WillScot Corporation merged with Mobile Mini, Inc., and the combined company was named WillScot Mobile Mini Holdings Corp. Through this merger, WillScot offers a broad portfolio of modular space and portable storage solutions to its customers across North America. In addition, it also aims to create a more diverse and stronger company that is better positioned for the future.
Proptech and Property News in association with Estate Agent Networking.
Andrew Stanton is the founder and CEO of Proptech-PR, a consultancy for Founders of Proptechs looking to grow and exit, using his influence from decades of industry experience. Separately he is a consultant to some of the biggest names in global real estate, advising on sales and acquisitions, market positioning, and operations. He is also the founder and editor of Proptech-X Proptech & Property News, where his insights, connections and detailed analysis and commentary on proptech and real estate are second to none.