Agenda item

Purpose of Report

To provide the Joint Committee with an update on current issues within non-domestic rates.

Decision

That the report be noted.

Alternative Options Considered and Rejected

None.

Reason for Decision

The following updates were noted:

Expanded Retail Discount

In response to Covid-19, in the budget on 11 March 2020, Government announced that it would increase the discount for 2020/21 to 100% and extend it to include the leisure and hospitality sectors. On 23 March 2020, further measures were announced which resulted in the relief being applied to occupied retail, leisure and hospitality properties in the year 2020/21, as well as removing the rateable value limit.

Nursery Discount

In response to Covid-19, Government announced a business rates Nursery Discount on 18 March 2020. The relief was to be applied to hereditaments occupied by providers on Ofsted’s Early Years Register and wholly or mainly used for the provision of the Early Years Foundation Stage and which are subject to businesses rates in the year 2020/21.

Support for Businesses – Grants

In response to Covid-19, the Government announced there would be support for small businesses and businesses in the retail, hospitality and leisure sectors. The support will take the form of two grant funding schemes in the financial year of 2020/21 – these being:

·         Small Business Grant Fund - £10,000 grant; and

·         Retail Hospitality and Leisure Grant Fund - £10,000 or £25,000 grant.

Small Business Grant Fund

This fund was available for all businesses in England in receipt of either Small Business Rates (SBRR) or Rural Rates Relief (RRR). The value of the grant was £10,000.

It was reported that each authority set up a grants team, which included officers from various service areas such as Economic Development, Business Support, Finance and Revenues and Benefits. The grants team mobilised quickly and put stages in place as at paragraph 7.4 of the report.

Retail Hospitality and Leisure Grant Fund

This fund was available for all businesses in England that would have been in receipt of the Expanded Retail Discount on 11 March 2020 and with a rateable value up to (but not including) £51,000.

The total grants awarded for each LA as at 16 August 2020 was shown in the table at paragraph 8.7 and 8.8 of the report.

Local Authority Discretionary Grants Fund

This additional fund was aimed at small and micro businesses who were not eligible for the Small Business Grant Fund or Retail, Leisure and Hospitality Fund.

The total grants awarded for each LA as at 16 August 2020 was shown in the table at paragraph 9.8 of the report.

Discretionary Relief Scheme

The tables at paragraph 10.6 of the report outlined the number of accounts identified and the total cost of relief for all 4 years for each of the partner authorities.

It was reported that there was a typing error at paragraph 8.7. the figure for North Kesteven should read £22.3m.

Councillor Ray Cucksey commented that a lot of support had been given to businesses especially as a lot of them were under enormous pressure. Gratitude should be given to the team especially as they have been working from home and had still managed to achieve a lot and help a lot of businesses.