Portfolio holder decision – Portfolio holder for Finance and Corporate - 6 February 2025
Retail, Hospitality and Leisure Rate Relief Scheme 25/26
|
Purpose |
For Decision |
|
Classification |
Public |
|
Executive Summary |
The Government has announced the extension of Retail, Hospitality and Leisure rate relief scheme to support businesses with their business rates bills from 1 April 2025 to 31 March 2026. The amount of relief will be 40% of the chargeable amount of business rates, subject to a cash cap. |
|
Recommendation(s) |
That the Retail, Hospitality and Leisure Relief scheme (Appendix 1) be approved. |
|
Reasons for recommendation(s) |
To approve the Retail, Hospitality and Leisure Relief scheme to enable support to eligible businesses from 1 April 2025. |
|
Ward(s) |
All |
|
Portfolio Holder(s) |
Cllr Jeremy Heron, Finance and Corporate |
|
Strategic Director(s) |
Alan Bethune, Corporate Resources and Transformation (S151) |
|
Officer Contact |
Ryan Stevens Service Manager – Revenues, Benefits and Customer Services |
1. In the 2024 Autumn statement, the Chancellor announced the extension of the business rates relief scheme for occupied retail, hospitality, and leisure properties. The value of the relief will be 40% of chargeable amount for 2025/26 and is subject to a cash cap of £110,000 per business and subsidy control. Any relief will be applied after any transitional relief, mandatory rate relief and discretionary reliefs.
2. The Government has issued guidance on the types of businesses that will benefit from the relief which will be occupied hereditaments that are wholly or mainly being used as:
i. shops, restaurants, cafes, drinking establishments, cinemas, or live music venues
ii. for assembly and leisure, or
iii. as hotels, guest and boarding premises or self-catering accommodation
3. In 2024/25 we have awarded £8.2 million in rate relief to circa 913 businesses. Our annual demand notice will include details of the scheme from 1 April 2025 for existing recipients, and how to apply for new applicants.
4. The scheme supports businesses in the retail, hospitality and leisure sectors.
Options appraisal
5. The scheme is discretionary, meaning the awarding of rate relief is not mandatory, however the Council is committed to supporting businesses where legislation and government reimbursement is provided. There is an expectation from Government that all Billing Authorities adopt and promote this scheme.
Consultation undertaken
6. The Government has issued guidance on the type of businesses that are eligible for this support, and about the operation of the scheme, and our policy is consistent with this.
Financial and resource implications
7. Although any relief granted is discretionary, there are no financial implications to the Council as any relief granted is fully funded by Central Government under Section 31 of the Local Government Act 2003. The administration of the relief will be using existing resources.
Legal implications
8. Any award of rate relief will be in accordance with the policy and government guidance.
Risk assessment
9. Not required.
Environmental / Climate and nature implications
10. There are none.
Equalities implications
11. There are none.
Crime and disorder implications
12. There are none.
Data protection/ Information governance/ ICT implications
13. We have received notification from our software suppliers of the coding to be used from 1 April 2025, and updated the text to be included in business rate bills. Application forms will be retained in accordance with our data retention policy.
Conclusion
14. Our policy is consistent with government guidance, and we will aim to promote the scheme to support businesses with their business rates in the retail, hospitality, and leisure sectors.
Portfolio holder endorsement
15. I have agreed to the recommendations of this report.
Signed: Cllr Jeremy Heron Dated: 6 February 2025
|
Appendices: Appendix 1 - Retail, Hospitality and Leisure Relief scheme |
Background Papers: NNDR – Retail, Hospitality and Leisure Relief Scheme |
|
|
|
Date on which notice given of this Decision – 7 February 2025
Last date for call in – 14 February 2025