Supreme Court gives government body chance to appeal cash machine ruling

The Supreme Court has given the government the right to appeal a £300m court dispute over business rate bills for cash machines outside shops.

Late last year the Court of Appeal decided in favour of supermarket giants such as Sainsbury’s and Tesco, overturning a decision that meant retailers were liable to pay business rates on their cash machines.

Read more: Retailers win court ruling over £300m cash machine case

However, the Supreme Court has now agreed to allow the government’s Valuation Office Agency (VAO) the right to appeal against last year’s defeat.

Real estate group Colliers branded the decision as "a kick in the teeth for retail", warning that the move could "flood the already struggling appeals system and could lead to stores ripping out their ATM machines".

The Court of Appeal ruled in November that ATMs inside and outside of retail outlets should not be assessed for additional business rates, overturning a decision in 2013 to charge separate business rates on 'hole in the wall' cashpoints which had not previously affected a store’s overall rates bill.

John Webber, head of business rates at Colliers International, said: "Not only is this an enormous waste of tax payers’ money to allow the case to roll on, but it could snatch away from hard pressed retailers the much-needed refunds, they have been waiting for in this period of economic uncertainty. At the very least it will delay them receiving anything for another two to three years, and that’s only if they are successful."

Read more: Cash machine ruling hits London councils with £60m rebate

The move to allow a challenge from the VAO could mean that London councils will not have to cough up a hefty rebate that they were previously expecting. 

According to real estate advisor Altus Group, nearly 2,400 supermarkets, small shops and petrol stations had been set for a £60m windfall from London’s councils following the five-year legal dispute.