1 April marked the start of the final year of the 2017 rating list, with businesses due to make their first rates instalment of the new year.
The Retail Rate Relief scheme - which is designed to provide a discretionary rates holiday for occupied retail, leisure and hospitality premises (and those closed due to COVID-19) – has still not been approved by EU. The approach by councils is inconsistent: some are requesting payment, whilst others have held matters in abeyance.
As we have advised previously, none of the package of measures announced by the Chancellor of the Exchequer afford rate relief to other types of businesses and we expect many to default on their 1 April instalment. Stakeholders (including BNPPRE) have made representations to Government for a rates holiday for the duration of the emergency.
On an entirely separate matter, many businesses have received from councils application forms for the government grants that were announced on 17 March. In England and Wales the criteria to be eligible is on a per property basis, whereas in Scotland it is one grant per business. Further criteria are i) the applicant’s business must be retail/leisure/hospitality, and ii) premises’ rateable value must be less than £51,000. Businesses will need to be aware of the €800,000 EU state aid limit.
We have produced a table summarising the current business rates as of 8 April 2020 which can be downloaded here.
