£1.5bn allocated towards business rates relief

A £1.5 billion stimulus will be distributed across the country according to which sectors have suffered most economically, rather than on the basis of falls in property values.

The plan is aimed at businesses that have been unable to benefit from the existing £16 billion business rates relief for retail, hospitality and leisure businesses.

Many businesses ineligible for relief have been appealing for discounts on their rates bills, arguing the pandemic represented a ‘material change of circumstance’ (MCC).

The government said allowing business rates appeals on the basis of a ‘material change in circumstances’ could have led to significant amounts of taxpayer support going to businesses who have been able to operate normally throughout the pandemic and disproportionately benefiting particular regions like London.

However, the government also added that market-wide economic changes to property values, such as from COVID-19, can only be properly considered at general rates revaluations and will therefore be legislating to rule out COVID-19 related MCC appeals.

Retail, hospitality and leisure businesses have not been paying any rates during the pandemic as part of a 15-month relief, which runs to the end of June this year.

“Our priority throughout this crisis has been to protect jobs and livelihoods. Providing this extra support will get cash to businesses who need it most, quickly and fairly,” said Chancellor of the Exchequer Rishi Sunak.

“By providing more targeted support than the business rates appeals system, our approach will help protect and support jobs in businesses across the country, providing a further boost as we reopen the economy, emerge from this crisis, and build back better.”