It may become even more expensive to run a business in Watford next year, according to expert analysis.

To reflect changes in the property market, the government is adjusting its ‘rateable values’ – the bands which decide how much tax businesses pay to occupy property.

According to business rates experts CVS, this could see business rates in Watford rise by as much as £4,227,307 in April 2017.

April 2010 was the last time the rateable values were assessed, based on the property market in April 2008.

The revaluation of business properties usually happens every five years but was delayed by two years as a result of the economic downturn.

Watford’s 7,667 businesses had a combined rateable value of £307,923,667 in 2010, which has formed the basis of rates bills for the last 7 years, but this has now increased to £311,771,150.

Mark Rigby, CEO of CVS, said: “There’s no doubt that the new Rating List isn’t the best of news for businesses in Watford.

“The previous business rates assessments took effect just as the financial crisis turned the property market on its head.

“That meant over the last seven years businesses here have effectively been paying less than they perhaps should have.”

The government are currently consulting on a 'transitional relief' scheme that will phase in large increases in rate bills slowly to cushion the blow.

Businesses facing increased rates bills can seek advice as to whether they are paying the correct amount with the government’s ‘Check. Challenge. Appeal.’ (CCA) process.

Once a business has run through the steps of the CCA they may submit an appeal for a rebate.

In 2010, one in three businesses who challenged their rates received a rebate.

Businesses have been urged by Lee Walsingham, CEO of Watford’s chamber of commerce, to remain calm, but cautious as the new rates are applied.

He said: “The situation is a bit of a mixed bag for Watford businesses, with some benefitting from the changes and some potentially suffering.

“There is of course no need to panic at this point and I would recommend all businesses fearing increased rates should check whether they have grounds for appeal and follow the official process.”

Do you run a business in Watford? Do you think the changes in rates are cause for worry? Let us know in the comments below.