LEADING professionals in Basingstoke are warning businesses to gear up for a hefty hike in their overheads.

business rates - already one of the biggest overheads for firms - are being dramatically reviewed following a revaluation of every commercial property in England and Wales.

The Valuation Office, part of the Inland Revenue, will be issuing new rateable values from April 1.

The increase comes at a time when the Government is also revising its uniform business rate, says Nigel Appleby, an associate director of accountants and business advisers Tenon, and Mark Clancy, a founder partner of commercial property agents London Clancy.

Mr Appleby said: "The Government has advised that the overall result of the revaluation will be an average increase in rateable value of 17.9 per cent.

"Those owner-managers who experienced the last revaluations some five years ago will recall there were transitional reliefs.

"The Government is currently suggesting that it will maintain these arrangements and introduce a small business rate relief scheme, which would be paid for by larger businesses, through a national supplemental business rate."

The new 2005 rateable values are the valuation officer's opinion of the rental value of business premises on April 1, 2003. Currently, the uniform business rate is provisionally set to be 42.2p in the pound from this April.

It is a central government-set rate which cannot be directly influenced by local businesses, said Mr Appleby.

Mr Clancy said: "Rateable values are an opinion and need to take into account all factors within the area which could affect rental value - including nearby developments, accessibility, age and quality of the subject building and, in certain circumstance, temporary works on roads and buildings."

Although appeals against the new rateable values cannot be submitted until after April 1, Mr Clancy advised businesses to start preparing if the values are to be challenged.

He said: "An appeal is not an automatic decision, as in some cases a higher rateable value may result. Many of the new rateable values will be derived from 'desk-based' categorisation used by the Valuation Office and we can assist in identifying specific issues and concern that could impinge on the rateable value."

He warned: "The process and the transitional arrangements are now so complex that they need to be fully understood so as to minimise the cost to the business."

The Government and the Royal Institution of Chartered Surveyors have introduced a code of practice to try to eliminate past problems with scams offering by "Rating Cowboys" to businesses.

The advice from Mr Appleby was: "I would recommend that all businesses consider discussing this rating revaluation with their financial or property advisers.

"Business rates are another form of indirect taxation and can be a material part of the overheads of many businesses.

"The long and short of it means that, once again, businesses are going to be hit with increased costs."