Business Rate changes - 2017 Spring Budget
In addition to the £3.6 billion transitional relief which was announced in November 2016, the government will provide £435 million of further support for businesses facing significant increases in bills from the English business rates system. This includes:
- support for small businesses losing Small Business Rate Relief to limit increases in their bills to the greater of £600 or the real terms transitional relief cap for small businesses each year. Local Authorities are waiting for formal guidance on the operation of this scheme from government and a software upgrade from their software suppliers which will allow us to implement this change.
- providing English local authorities with funding to support £300 million of discretionary relief, to allow them to provide support to individual hardship cases in their local area. The government released a consultation to determine the conditions of this scheme which closed on 7th April. Government have not provided details of the response to this consultation but have advised Council's to continue developing their scheme. To meet the government's criteria for grant funding Council's must consult with major preceptors on their scheme. We are currently preparing to do this which we hope will be completed by mid-July. An update will be provided as work on the consultation progresses.
- The government will also introduce a £1,000 business rate discount for public houses with a rateable value of up to £100,000, subject to state aid limits, for one year from 1 April 2017. Government plans to publish a consultation on the operation of the relief scheme for pubs. All government consultations are on hold due to the purdah period for the General Election. An update will be provided when that consultation is available.
For full details on the Chancellor's Spring Budget please click here (see section 4.5).