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COVID-19 Business Rate Reliefs and Grants – Retail, Hospitality & Leisure

24/03/2020

At a glance

As a result of the unique challenges posed by COVID-19 the Chancellor has set out a package of financial support for businesses which comprises business rate reliefs and grants, set out below.

These measures will be welcomed by retailers, leisure and hospitality providers following the latest Government requirement for all non-essential shops to close in addition to pubs, restaurants, cafes and leisure centres.

Expanded retail relief

There will be a 12 month business rates holiday for all eligible businesses in the retail, leisure and hospitality sectors. The relief will be effective from 1st April 2020.

There is no rateable value limit. The relief will be applied to occupied properties only (sites which have closed temporarily due to the Government’s advice on COVID-19 will be treated as occupied for this relief).

Properties used for the following will benefit from the relief:

  • As shops, restaurants, cafes, drinking establishments, cinemas and live music venues;
  • For assembly and leisure; or
  • As hotels, guest & boarding premises and self-catering accommodation.

Properties used for the following will not be eligible for the relief:

  • Financial services (e.g. banks, building societies, cash points, bureaux de change, payday lenders, betting shops, pawn brokers)
  • Other services (e.g. estate agents, letting agents, employment agencies)
  • Medical services (e.g. vets, dentists, doctors, osteopaths, chiropractors)
  • Professional services (e.g. solicitors, accountants, insurance agents/ financial advisers, tutors)
  • Post office sorting offices
  • Casinos and gambling clubs

This Government guidance paper sets out further details.

Empty property relief

As of now there have been no changes to empty rates relief and this includes properties which have been vacated by staff as a result of the Government’s social-distancing measures.

Interestingly properties that are prohibited by law from being occupied are exempt from paying business rates, this will become more relevant as the lockdown widens.

Cash grants for businesses that pay little or no business rates

Small businesses that already pay little or no business rates because of small business rate relief, rural rate relief and tapered relief will be eligible for a one-off grant of £10,000 to help meet their ongoing business costs.

Cash grants for retail, hospitality and leisure

The Retail and Hospitality Grant Scheme provides businesses in the retail, hospitality and leisure sectors with a cash grant of up to £25,000 per property.

For businesses in these sectors with a rateable value of under £15,000, they will receive a grant of £10,000.

For businesses in these sectors with a rateable value of between £15,001 and £51,000, they will receive a grant of £25,000.

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