North East Lincolnshire Council gives green light for Government’s small business support scheme
5th October 2017
North East Lincolnshire Council has approved a new Government scheme designed to support small firms that have had a steep increase in business rates.
As part of the spring budget Chancellor Philip Hammond announced three new business rates relief schemes that are aimed at helping businesses that have seen charges rise following the 2017 revaluation.
The schemes are:
The Business Rates Relief schemes of Supporting Small Businesses
The Business Rate Relief Scheme for Pubs
The Discretionary Relief Scheme
And at the latest North East Lincolnshire Council Cabinet meeting councillors unanimously approved to roll out the scheme locally, meaning businesses will benefit from almost £500,000 from Westminster.
The Supporting Small Businesses Relief scheme is something that will be made available to those ratepayers who face large increases in their rates due to the loss of small business or rural rate relief, while the Business Rate Relief Scheme for Pubs, is a programme that will allow pubs with a rateable value under £100,000 to receive a £1,000 discount on their annual bill.
In North East Lincolnshire it is estimated that the Business Rate Relief Scheme for Pubs will benefit about 62 pubs at a cost of £62,000, which will be reimbursed by the Department for Communities and Local Government. It is estimated that 21 businesses in the area will qualify for the Small Business Relief, at a cost of approximately £88,000, which will also be reimbursed.
The Discretionary Relief Scheme allows local authorities to adopt their own scheme that will direct funding to small businesses that are in need of extra assistance following the 2017 rates revaluation, with central government making £300 million available to local authorities across England over the course of four years.
North East Lincolnshire Council’s approval will see the implementation of the new schemes and has received £479,000 out of the £300 million through the Discretionary Relief Scheme.
It will be broken down as follows:
2017-18 – £279,000
2018-19 – £136,000
2019-20 – £56,000
2020-21 – £8,000
Businesses who wish to access the funding from the Discretionary Relief Scheme will have to meet certain criteria set out by central government, with businesses with a rateable value of below £200,000 which experienced an increase of more than 12.5 per cent in their 2017-18 bill compared to their 2016-17 bill being allowed to apply.
However, exact criteria will be laid out by council officers. the director of finance, resources and operations in consultation with the portfolio holder for finance, community assets, governance and tourism.
North East Lincolnshire Council will be inviting applications for the discretionary relief so that business rate payers will receive the support within this financial year.
Relevant businesses will be contacted in writing and directed to the council’s website to make an online application.
News Courtesy: www.humberbusiness.com