Bira fights ‘anomaly’ in government grant funding

The British Independent Retailers Association (Bira) is fighting an ‘anomaly’ in government grant funding meaning some small independent retailers could be missing out on £15,000 Covid-19 cash.

Bira member Tim Asquith of Frankie & Johnny’s Cookshop in York, is just one of almost 3700 small independent retailers which will miss out on the cash – due to a change in bracketing since the scheme was announced.

Tim explains: “When the support was announced I studied the conditions carefully on the Government website. It seemed that as a retail business with a rateable value of exactly £15,000 we were entitled to a business rate ‘holiday’ for 12 months and a £25,000 grant.”   However, the information has since been changed so that only properties with an RV of between £15,001 and £51,000 will get the £25,000 grant.  Tim says his business’s ‘actual’ RV is £15,164 but is ’rounded down’ as is Valuation Office Agency (VOA) policy, – and as a result will only receive a £10,000 grant.

Above: Frankie & Jonny’s Cookshop is one of many small independent retailers which will miss out due to
Above: Frankie & Jonny’s Cookshop is one of many small independent retailers which will miss out due to

Furthermore, the Government introduced the threshold as retailers valued below £15,000 had previously been eligible for Small Business Rates Relief (SBRR). But this relief is tapered between £12,001 and £15,000, meaning that firms with a rateable value of £12,001 would have their rates reduced by 100 per cent, with the size of the cut reducing until those with a £15,000 valuation receive a zero per cent cut.

Tim said: “I do feel that the initiatives and speed of response from the Government have been good but I think that either the Government should stand by their initial information (now altered) or apologise for misleading businesses.

“I know we are not alone in this issue, I know of more businesses who have responded to our messages and others in our immediate area with the same business rateable value.”

Above: Bira’s Andrew Goodacre.
Above: Bira’s Andrew Goodacre.

Bira’s CEO Andrew Goodacre said: “This anomaly highlights the unfair way in which the grant allocation system has been designed.

“I have already spoken to members for whom this anomaly applies and they will, therefore, miss out on a substantial amount of money when they need it most.

“We are highlighting the matter to the Government, and fighting for a fairer scheme.”

Bira’s new dedicated coronavirus hub is being updated every day, throughout the day, to help its members and the wider independent retail community through the crisis.

Click here for the latest updates.

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