The government recognises that many small businesses pay little or no business rates because of Small Business Rate Relief (SBRR). To support those businesses, the government will provide £2.2 billion of funding for Local authorities in England. This will provide £10,000 to around 700,000 business currently eligible for SBRR or Rural Rate Relief, to help meet their ongoing business costs. For a property with a rateable value of £12,000, this is one quarter of their rateable value, or comparable to 3 months of rent. Most properties that are eligible for SBRR will have a lower rateable value, and so this will represent an even greater proportion of their annual rent.
In addition to a 2020/21 business rates holiday, a £25,000 grant will also be provided to retail, hospitality and leisure businesses operating from premises with a rateable value between £15,000 and £51,000. There is no need to apply for this grant which will be paid by the local authorities.
