Coronavirus – Business Rates and Government Grant Schemes
Business Rate Support – The Business Rates retail discount in England will be increased to 100% in 2020-21 and expanded to the leisure and hospitality sectors.
The rates discount for qualifying pubs will be increased to £5,000. Taken together with existing small business rate relief (which provides full relief for businesses using a single property with a rateable value of £12,000 or less), an estimated 900,000 properties, or 45% of all properties in England, will receive 100% business rates relief in 2020-21:
- Businesses that received the retail discount in 2019-20 will be rebilled by their local authority as soon as possible.
- Those businesses eligible for the newly expanded retail discount and/or the new pubs discount may need to apply to their local authority to receive the discount.
- Any enquiries on eligibility for, or provision of, the reliefs should be directed to the relevant local
The government is also providing an additional £2.2 billion funding for local authorities to support small businesses that already pay little or no Business Rates because of Small Business Rate Relief (SBBR). This will provide a one-off grant of £10,000 to around 700,000 business currently eligible for SBRR or Rural Rate Relief, to help meet their ongoing business costs. For a property with a rateable value of £12,000, this is one quarter of their rateable value, or comparable to 3 months of rent.
Cash grants for retail, hospitality and leisure businesses
The Retail and Hospitality Grant Scheme provides businesses in the retail, hospitality and leisure sectors with a cash grant of up to £25,000 per property.
For businesses in these sectors with a rateable value of under £15,000, they will receive a grant of £10,000.
For businesses in these sectors with a rateable value of between £15,001 and £51,000, they will receive a grant of £25,000.
You are eligible for the grant if: your business is based in England and your business is in the retail, hospitality and/or leisure sector.
Properties that will benefit from the relief will be occupied premises that are wholly or mainly being used:
- as shops, restaurants, cafes, drinking establishments, cinemas and live music venues;
- for assembly and leisure;
- as hotels, guest and boarding premises and self-catering accommodation.
There is no action you need to take. Your local authority will write to you if you are eligible for this grant.
Support for businesses that pay little or no business rates
The government will provide additional Small Business Grant Scheme funding for local authorities to support small businesses that already pay little or no business rates because of small business rate relief (SBBR), rural rate relief (RRR) and tapered relief. This will provide a one-off grant of up to £10,000 to eligible businesses to help meet their ongoing business costs.
You are eligible if: your business is based in England; you are a small business and already receive SBBR and/or RRR and you are a business that occupies property.
You do not need to do anything. Your local authority will write to you if you are eligible for this grant.
Any enquiries on eligibility for, or provision of, the reliefs and grants should be directed to the relevant local authority.
The business rates in Scotland, Wales and Northern Ireland are set by the devolved administrations. We have set out below the main regional variations.
Veracity are here and available to help you and your businesses through this extremely challenging period.