In a statement published today (22 April), the Association said escalating business rates have become a “real burden” on the AD industry and place an “unacceptable risk” on many plants.
According to ADBA, HMRC’s Valuation Office Agency has been reviewing its business rates assessments .
ADBA says a change of methodology could lead to AD plant operators facing bills they can’t meet . It added that this would cause “ the closure of their business and the loss of a precious waste management and decarbonisation service for the UK”.
While many AD operators benefit from reduced rates at the moment, ADBA is concerned that operators could face the “full impact” of any revaluation.
ADBA warned that the issue is “particularly critical” due to the part AD plays in tackling climate change, and the threat that many plants could close down if they can’t afford the rates.
The Association has been working with a rating practitioner to address the issue with the HMRC Valuation Office Agency to ensure that the business rates “remain affordable and fair”.
There are currently 685 AD plants in the UK treating 46 million tonnes of organic wastes every year, ADBA says.
‘Very concerned’
Charlotte Morton, ADBA’s chief executive said: “The revaluation will mean high levels of charges akin to those now levied on AD operators in Scotland, Wales and Northern Ireland. We realise that the tax has to be paid, but it must be fair and reasonable, have regard to a plant’s ability to pay and fully reflect the challenges of running an AD plant. ADBA is very concerned about the impact this tax will be having across the industry.”
Ms Morton concluded that the ABDA is “confident” that “concerted action” will give the industry an opportunity to reset business rate charges to more “realistic levels”.
Any AD operator receiving a letter about business rates are advised to take professional advice.
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