Businesses in the retail, hospitality and leisure sector are expected to save around £10 billion this tax year through business rates relief, official figures have revealed.
The new statistics come after the Government launched its comprehensive business rates relief package for high street firms forced to close as a result of Covid-19.
Under the Extended Business Rates Retail Discount, small to medium-sized commercial premises in the retail, hospitality and leisure sector will benefit from a 100 per cent business rates discount in the 2020/21 tax year. There is no rateable value limit on the relief.
It means eligible businesses – such as shops, restaurants, cafes, drinking establishments, cinemas, live music venues, gyms, sports grounds, and hotels - will pay nothing in business rates for an entire year. To find out more about the Extended Retail Discount, please click here.
Commenting on the report, Minister for Local Government Simon Clarke said: “This government has announced a comprehensive programme of support for business to help them deal with the economic impact caused by the Covid-19 pandemic, including providing 100 per cent rate relief for the retail and leisure industry.
“It is great that councils estimate they will provide almost £10 billion in additional business rate relief this financial year. This will provide businesses with a much-needed boost at this unprecedented time and builds on over £6 billion already awarded to business in grants announced earlier this week.”
The figures come after the Government announced new measures designed to protect the UK high street from “aggressive rent collection and closure”. Under the new rules, the Government will ban the use of statutory demands and winding up orders “where a company cannot pay their bills due to coronavirus, to ensure they do not fall into deeper financial strain”.
Are you eligible for coronavirus financial relief? For help and advice claiming support, please get in touch with our expert team today.