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News

News Update – Retail & Leisure Business Rates Suspended from April 2020

News Update – All Retail, Leisure, & Hospitality Business Rates Suspended from April 2020

Wednesday 18 March 2020

In response to the Covid-19 outbreak, the Chancellor of the Exchequer, Rishi Sunak, after last Wednesday’s 2020 Budget meeting announced that business rates in many circumstances are to be abolished for the next financial year.

 

From April 2020, the Retail Discount is being increased to 100%, and the application of this discount will be extended to include hospitality and leisure properties.  The discount does not apply to vacant property, and to be eligible, the property must be wholly or mainly used as a shop, restaurant, café, drinking establishment, or used as leisure, which includes cinemas and hotels.  To enable this, the Government is understood to have written to the EU requesting the lifting of “State Aid” rules which limit the amount of discretionary relief the Government can award.

 

In addition to the 100% rates cut for 12 months, grants of £10,000 will be made available to small businesses eligible for small business rate relief.  Further funds of £25,000 grants to retail, hospitality and leisure businesses operating from smaller premises, will also be available.

 

Daniel Green, our business rates expert, commented, “These announcements are a huge relief and by removing the State Aid limits, it brings immediate certainty to the finances of those sectors most affected.  Whether these measures will be sufficient to enable businesses to weather the effects of the virus outbreak remains to be seen, but the government has felt the need to provide more assistance and has acted quickly”.

 

For further information, please contact:

Daniel Green

E: d.green@flude.com

T: 01243 819000