The main announcement on business rates was one of the measures to help small businesses trying to cope with the effect of coronavirus. It was the abolition of the charge for one year for all shops, restaurants, cinemas and music venues with rateable values below £51,000. In addition, pubs with a rateable value of less than £100,000 will have a £5,000 discount on their business rates.
The Chancellor also announced a review into the long-term future of business rates, which are often blamed for the contribution they have made to the demise of the high street.
Employers with less than 250 employees are expected to be able to claim up to £2 billion to cover the cost of sick pay for absences due to coronavirus, and for up to 700,000 small businesses not paying business rates, cash grants of up to £3,000 will be made available.
Since the Budget, the Chancellor has announced an increase in the cash grants available for small businesses from £3,000 to £10,000. Once funding is available, local authorities will write to those businesses eligible for a cash grant directly, rather than businesses having to make an application.
Furthermore all retail, hospitality, and leisure businesses will have a rates holiday for the 2020/21 tax year and those with a rateable value between £15,000 and £51,000 will be eligible for a £25,000 grant. Any queries regarding the above should be directed to your relevant local authority.
Properties that will benefit from this relief will be mainly or entirely used:
- as shops, restaurants, cafes, drinking establishments, cinemas and live music venues;
- for assembly and leisure; or
- as hotels, guest & boarding premises and self-catering accommodation.
To read more about the criteria which central government considers for the purpose of this scheme to be eligible for this discount, click here.