We’ve worked with Avison Young to highlight some examples of innovative work done under the Analysis and Recovery framework that resulted in rate reductions and recovery of historic overpayments.
Airedale NHS Foundation Trust – Tackling RAAC challenges through business rates savings
Following a May 2023 survey, NHS England identified 54 hospital sites that utilised RAAC (reinforced autoclaved aerated concrete) in their construction. As RAAC has been found to pose a significant safety risk, these sites were inducted into a programme to mitigate risk and eventually replace the RAAC panels.
Airedale General Hospital, part of Airedale NHS Foundation Trust, was found to have used RAAC panels extensively across their site, including in the roof and external walls. Engineering assessments revealed a genuine risk of failure, prompting urgent remedial works. The Trust was also required to install temporary modular buildings to ensure services could continue without interruption.
These short-term solutions came with a significant cost, adding financial strain to an already challenging situation.
The project
Business rates are calculated on the assumed value and utility of a property. For Airedale, the hospital’s condition no longer matched the valuation applied, leaving the Trust with liabilities that were disproportionate to the building’s true function.
Using the Analysis and Recovery framework, Airedale NHS Foundation Trust appointed Avison Young to provide expert advice on business rates.
Rather than pursuing a lengthy tribunal process, which could have taken years to conclude, the advisers engaged directly with the Valuation Office Agency (VOA). By leveraging established working relationships, they sought a pragmatic resolution outside the normal challenge route.
The impact
Avison Young were able to secure significant allowances to the hospital’s valuation, recognising the limitations imposed by RAAC. The temporary modular units were also rated at a lower value, further reducing liability. The reductions to the site’s valuation were backdated to 2021, which allowed for historic overpayments to be addressed.
The impact of these combined efforts resulted in £3 million in savings on the trust’s business rates. By correcting the mismatch between the valuation and reality, the agreement provided greater financial certainty during a time of intense operational challenge.
Salford Royal Hospital – Negotiating rates on a major new development
Salford Royal Hospital, part of the Northern Care Alliance NHS Foundation Trust, recently expanded its estate with the development of the Greater Manchester Major Trauma Centre. This high-profile facility represented a significant investment in specialist emergency and trauma services for the region.
Whilst the construction was completed in late 2023, extensive internal fit-out and commissioning works were required before the facility could be used at full capacity. However, the Valuation Office Agency (VOA) planned to increase the hospital’s business rates immediately following the completion of construction, leaving the trust to pay substantial new liabilities on a space that was not yet operational.
The project
The trust engaged Avison Young under the Analysis and Recovery framework to ensure that the valuation reflected when the building was fit for service, not just when construction was technically complete.
Avison Young gathered detailed evidence showing that operational use of the trauma centre was delayed until May 2024, which formed a foundation for negotiations with the VOA. Rather than contesting the issue through formal challenge procedures, which could have taken considerable time, the advisers sought an agreed position that reflected the reality on the ground.
The impact
The effective date of the rating increase was pushed back from September 2023 to May 2024. This adjustment reduced liabilities by £500,000. A further £500,000 was secured through improvement relief applied to the new assessment.
In total, the Trust achieved savings of more than £1 million.
The ability to secure fair treatment on business rates helped ensure that investment in the trauma centre translated into patient benefit rather than unnecessary additional costs. This aligned with wider NHS goals of value for money, sustainability and high-quality care delivery.
Get in touch
If you are interested in contracting business rates review services, or would like to discuss how your organisation can benefit from the services covered by the Analysis and Recovery framework, don’t hesitate to contact our Corporate Services team.
Contact the Corporate Services team