Business to receive almost £10bn in rates relief

New statistics published on Wednesday show the business rate relief predicted by councils for businesses across England in the retail, hospitality and leisure sector, is expected to amount to nearly £10 billion.

It means that those which may be the hardest hit by the pandemic, such as eligible shops, restaurants, cafes and pubs, will pay no business rates whatsoever this financial year.

“[The] figures demonstrate that, through working with local authorities, we are giving businesses the support that they need during this national emergency; an unprecedented nearly £10 billion in business rates relief,” said Local Government Secretary Rt Hon Robert Jenrick.

“The government was clear that we would do whatever it took to support local business and that is exactly what we are doing. We stand behind them and their employees as we work to protect the NHS and save lives.”

According to the government, businesses are benefiting from this scheme right now with discounts on their rates bills helping them with their cash flow.

The government has committed to compensating local authorities in full for the business rate relief with payments due to begin shortly.

“It is great that councils estimate they will provide almost £10 billion in additional business rate relief this financial year. This will provide businesses with a much-needed boost at this unprecedented time and builds on over £6 billion already awarded to business in grants announced earlier this week,” said Minister for Local Government Simon Clarke.

The news follows the announcement that £3.2 billion of extra funding is being given to councils, helping them continue to provide essential services and support to those who need it most.

In the budget last March, the government announced it would take the exceptional step of increasing the Business Rates Retail Discount to 100 per cent from 50 per cent.

This, and the measures announced in response to the coronavirus, take the value of the Expanded Retail Discount and the Nursery Discount to £10.1 billion in 2020-21.

This support comes as part of a wider package of measures to help businesses to deal with the economic impact of coronavirus.

It includes a £12.3 billion package for local authorities to deliver grants of up to £25,000 to eligible businesses and the commitment to pay the wages of millions of employed and self-employed people by covering 80 per cent of monthly incomes through the Coronavirus Job Retention Scheme and the Self Employment Income Support Scheme.