NHS Borders challenges revaluation of its buildings

EXCLUSIVE by LESTER CROSS

A total of nineteen appeals against new rateable values applied to hospitals, medical practices and other health service properties in the Scottish Borders are due to be considered by the region's assessor on a decision day next month.

Cash-strapped NHS Borders which needs to achieve savings running into millions of pounds during the current financial year, will face an increased rates bill if the figures set by assessor Brian Rout during the 2023 revaluation of non-domestic properties remain at their revised level.

Buildings with a rateable value of up to £51,000 are liable for rates payments of 49.8p in the £; for properties valued at between £50,001 and £100,000 the rate poundage is 54.5p, and those with a rateable value above £100,000 the levy is 55.9p.

NHS Borders has a number of properties with rateable values in excess of £100,000. And following the revaluation Borders General Hospital, the region's main treatment centre, is valued at £1,330,000 for rating purposes.

According to official figures a total of 92 health and medical properties in the Borders - including those which are not part of the NHS Borders estate - had a total rateable value of £3,905,100 following the previous revaluation in 2017. The figure increased to £4,167,950 in the wake of the 2023 revision of values. Of the 92 buildings, 64 saw an increase in their rateable values.

The 19 appeals lodged on behalf of the health authority - they are known as proposals - will be considered on February 12th.

A spokesman for the Assessor's department at Scottish Borders Council explained: "The Assessor makes the decision on the proposals in terms of the Valuation (Proposals Procedure) (Scotland) Regulations 2022. There is a right of appeal to the First-Tier Tribunal for Scotland – Local Taxation Chamber."

We sent a number of questions to NHS Borders about the challenges they have made.

We asked: "Can you please provide some background about the board’s reasons for submitting proposals? What was the annual non-domestic rates bill for the listed properties prior to the revaluation? What will be the annual non-domestic rates bill based on the assessor’s revaluations? What kind of reduction, say in percentage terms, does the board hope to achieve at next month’s determination date? 

"At the same time can you provide information on the costs facing the Borders health authority because of the UK Government’s increase in employers’ NI contributions? What was/will be the annual spend on NI contributions before and after the increase in charges?"

Unfortunately, the health board told us: "Due to the nature of this request, I will forward your email on to our Freedom of Information team so that this can be processed as an FOI."

However, we were not prepared to wait for up to 20 working days for a response. By that time Mr Rout would have ruled on the proposals.

These are the properties which are the subject of 'proposals' together with their new rateable values:

Eyemouth Day Hospital £56,500; Coldstream Health Centre £52,500; Knoll Hospital, Duns £121,000; Galashiels Health Centre £129,000; Selkirk Health Centre £35,000; Office, Huntlyburn £8,700; Borders General Hospital £1,330,000; Office, Newstead £109,000; Stow Health Centre £17,800.

Melrose Health Centre £17,800; Newcastleton Health Centre £23,750; Hawick Health Centre (Teviot Road) £61,500; Hawick Community Hospital £255,000; Jedburgh Health Centre £62,000; Kelso Hospital £123,000; Kelso Health Centre £69,500; Hay Lodge Hospital, Peebles £116,000; Innerleithen Health Centre £24,500; West Linton Health Centre £18,600.