Working spaces

Snap election puts 300m small business rate relief on hold

Praseeda Nair | 24 April 2017 | 7 years ago

Small business rate relief
The small business rate relief scheme would give local authorities an allocation from a 300m fund to support local firms
The UK government has admitted distribution of its 300m small business rate relief package will be delayed until after the upcoming general election.

Through the discretionary support fund, local authorities would be allocated part of a 300m budgetto give direct financial support to owners of local firms facing the biggest increases to business rates.

Between March and April, the Department for Communities and Local Government held a public consultation on the small business rate relief scheme to seek views on the final allocation of the fund to local authorities.

A spokesperson for the department confessed the publication of the consultation’s findings will now be delayed until after the general election on 8 June 2017. Distribution of the funds was initially marked for 1 April.

Chancellor Philip Hammond announced the schemeamong other reforms in the Spring Budget in March to support the most vulnerable small business owners, and the delay of the fund is a setback for those hoping to soften the blow of recent property revaluation.

Commenting on the delay of the fund, Mark Rigby, chief executive of non-domestic rent specialist CVS, said the small business rate relief scheme continued to representa vital lifeline to owners.

the relief fund was negotiated and designed to help those shouldering the biggest increases through the revaluation, he said in a statement.

for the distribution of that relief to now be delayed is an unhappy consequence of the general election and will cause grave concern to small businesses already worried about the burden they are facing.

Business rates are revalued every five years, but due to a two-year delay in the recent valuation, new rates have reflected seven years of property price increases. According to CVS research, business owners in England and Wales saw an average rate increase of 8.5 per cent at the start of April.

The fund was part of a governmentresponse to concerns from the small business community regardingthe impact ofbusiness rates revaluation. A Federation of Small Businesses (FSB) study revealed that three-quarters of the organisation’s members saw newrates as the single biggest threat to survival.

The small business rate relief package was announced alongside a special 1, 000 discount to support the UK’s pub landlords and 50 cap for owners taken out of the rate relief scheme.

Britain’s high streets are among the most under threat from new business rates.We want to hear your views on the challenges facing high street retailers, so please take two minutes to complete our High Streets Initiative survey and make a difference.

Related Topics

How to Effectively Manage Remote Teams in Today’s World
30 August 2023

How to Effectively Manage Remote Teams in Today’s World

Read More →
Eco-Friendly Sustainable Business Practices
8 August 2023

Eco-Friendly Sustainable Business Practices

Read More →
The Future of Remote Work: Adapting to the Hybrid Workforce
17 July 2023

The Future of Remote Work: Adapting to the Hybrid Workforce

Read More →
The business rates loopholes your small company should know
4 September 2020

The business rates loopholes your small company should know

Read More →
How to winter-proof your workplace
31 October 2019

How to winter-proof your workplace

Read More →
5 things to consider before entering into a trendy office space
15 October 2019

5 things to consider before entering into a trendy office space

Read More →

If you enjoy reading our articles,
why not sign up for our newsletter?

We commit to just delivering high-quality material that is specially crafted for our audience.

Join Our Newsletter