Business rates relief boosted by £1.5 billion

The government has announced a new Business Rates relief fund of £1.5 billion for businesses affected by coronavirus outside the retail, hospitality, and leisure sectors.

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

Now, the government will provide a £1.5 billion pot across the country that will be distributed according to which sectors have suffered most economically, rather than on the basis of falls in property values, ensuring the support is provided to businesses in England in the fastest and fairest way possible.

The £1.5 billion pot will be allocated to local authorities based on the stock of properties in the area whose sectors have been affected by coronavirus. Local authorities will use their knowledge of local businesses and the local economy to make awards.

Local Government Secretary Robert Jenrick said: “Throughout the pandemic we have provided unprecedented support to businesses. Today are going even further with an extra £1.5 billion for councils to provide additional targeted support to those businesses that have not already received rate relief. This is the fastest and fairest way of getting support to businesses who need it the most. We are also acting to ensure businesses have certainty over their bills and councils have certainty over their funding so they can continue to support their communities and deliver quality local services.”