Business Rate Reliefs and Grant Funding
On 17 March 2020 the Chancellor set out a further package of targeted measures to support businesses through this period of disruption caused by COVID-19:
• increasing the retail discount from one-third to 50 per cent for eligible retail businesses occupying a property with a rateable value less than £51,000;
• extending the retail discount to eligible music venues and cinemas with a rateable value less than £51,000;
• introducing a pub discount of £1,000 to eligible pubs with a rateable value of less than £100,000 – this being in addition to the retail discount and will apply after the retail discount.
• Extending the £1,500 business rates discount for office space occupied by local newspapers for an additional 5 years until 31 March 2025.
In response to COVID-19, the government has gone further than previously announced to support businesses and stated the following:
• the retail discount will increase to 100% for 2020-21
• the relief will be expanded to the leisure and hospitality sectors
• the pub discounts will increase to £5,000
• a 12 month business rates holiday for all retail, hospitality and leisure businesses
The Spring Budget 2020, which was presented to the House of Commons on 11 March 2020, included further amendments. To support small businesses affected by the COVID-19 virus, the Government is extending the value of Retail Discount to 100% for 2020/21 and the scheme is also being expanded to include the leisure and hospitality sectors.
Grant Funding for Retail – A £25,000 grant will be provided to retail, hospitality and leisure businesses operating from smaller premises, with a rateable value between £15,000 and £51,000.
Local authorities are currently awaiting further guidance from Government on the implementation of the above. They expect this guidance to be issued in early April 2020.
You do not need to apply and you will be contacted by your local authority.
