National Non-Domestic Rates and Local Loop Unbundling
One of the drivers of broadband in the UK is local loop unbundling. This is a process which enables competing operators to take over BT's lines from the exchange to user premises. After an uncertain start, unbundling is now accelerating. But each unbundled line is potentially a separate rateable property or hereditament for business rates purposes. So the Government has consulted on proposals to make special arrangements to avoid stakeholders having to deal with millions of new rateable properties. But the arrangements would apply only to operators using BT's lines and would not extend to operators investing in new broadband technologies. They are treated as being in rateable occupation of every fibre that they light. Harbottle & Lewis LLP is concerned about the implications of the proposals for the sector and the growth of higher bandwidth services. It responded to the consultation on 16 October 2007 suggesting that the Government should consider whether the proposals would cause distortions in the wider market.
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