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Maidstone and Tunbridge Wells NHS Trust hit by £1m business rates hike

12:00, 12 April 2017

Health bosses have vowed to challenge huge rise in business rates at Tunbridge Wells Hospital.

The site at Pembury has seen its bill rise by about £1 million and is among the 10 worst affected in the country following a revaluation of the property tax last year.

Figures show 1,249 facilities in England saw their rateable values rise by £124.36m or 19.8% to £752.68m. Other badly affected hospitals include University Hospital Birmingham and the Royal London Hospital.

Tunbridge Wells Hospital at Pembury
Tunbridge Wells Hospital at Pembury

Maidstone and Tunbridge Wells NHS Trust (MTW), which was placed into financial special measures over its forecast £23.4m deficit last July, paid £1,59m rates in 2016. The trust’s rates at its other site in the County Town remain low and the board said it would challenge the increase, which adds about 63% to its total bill.

The rise has been factored into the trust’s financial plans in advance.

Overall property consultants CVS said the changes would see business rate bills for NHS Hospitals in England set to rise by £322 million over the next five years, and £16 million a year in London alone.

Last year around 80 trusts wrote to councils claiming they should be classified as charities, like many private health groups such as Nuffield Health who benefit from the tax breaks such organisations receive.

Rateable values are set by the government's Valuation Office Agency. These are then multiplied by a business rates multiplier set by the central government to form business rates.

An MTW spokesman declined to comment further.

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