New statistics
published today (22 April 2020) by the
government show the business rate relief predicted by
councils for businesses across England in the retail,
hospitality and leisure sector.
It means that those which may be the hardest hit by the
pandemic, such as eligible shops, restaurants, cafes and
pubs will pay no business rates whatsoever this financial
year.
Businesses are benefiting from this scheme right now with
discounts on their rates bills helping them with their
cashflow. The government has committed to compensating
local authorities in full for the business rate relief
with payments due to begin shortly.
The news follows the announcement that £3.2 billion of
extra funding is being given to councils, helping them
continue to provide essential services and support to
those who need it most. This includes getting rough
sleepers off the street, supporting new shielding
programmes for clinically extremely vulnerable people and
assistance for our heroic public health workforce and
fire and rescue services.
Local Government Secretary Rt Hon MP said:
Today’s figures demonstrate that, through working with
local authorities, we are giving businesses the support
that they need during this national emergency; an
unprecedented nearly £10bn in business rates relief.
The government was clear that we would do whatever it
took to support local business and that is exactly what
we are doing. We stand behind them and their employees
as we work to protect the NHS and save lives.
Minister for Local Government said:
This government has announced a comprehensive programme
of support for business to help them deal with the
economic impact caused by the Covid19 pandemic,
including providing 100 per cent rate relief for the
retail and leisure industry.
It is great that councils estimate they will provide
almost £10 billion in additional business rate relief
this financial year. This will provide businesses with
a much-needed boost at this unprecedented time and
builds on over £6 billion already awarded to business
in grants announced earlier this week.
In the Budget last March, the government announced it
would take the exceptional step of increasing the
Business Rates Retail Discount to 100% from 50%. This,
and the measures announced in response to the
Coronavirus, take the value of the Expanded Retail
Discount and the Nursery Discount to £10.1 billion in
2020/21.
This support comes as part of a wider package of measures
to help businesses to deal with the economic impact of
Coronavirus.
It includes a £12.3 billion package for local authorities
to deliver grants of up to £25,000 to eligible businesses
and the commitment to pay the wages of millions of
employed and self-employed people by covering 80% of
monthly incomes through the Coronavirus Job Retention
Scheme and the Self Employment Income Support Scheme.
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Some properties are eligible for discount from their
business rates bill – this is called business rates
relief. Local authorities bill businesses a standard
rate with a total on how much they have to pay in a
certain year. Today’s announcement means that local
authorities will issue updated bills to business that
reduce their bills substantially.
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Businesses do not need to take any action as their
local council will apply the discount automatically.
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See more
information on which businesses are eligible
for the relief.
