The British Independent Retailers Association (Bira) has become aware of a lack of uniformity in the way local authorities are implementing the hard-fought 30% discount for businesses with a rateable value below £51,000. Some authorities are automatically applying the discount, while others require a form to be filled in by smaller retailers.
In October 2018, Bira was delighted when the Chancellor of the Exchequer announced the discount in his budget – to be applied to all retail premises (below the £51,000 threshold). Businesses would still receive the small business rates reliefs (applicable to businesses with a rateable value below £12,000).
Andrew Goodacre, Bira’s ceo reflects: “This was a real win for the smaller independent retail businesses and a real reward for Bira’s campaign to reduce the burden of business rates.
“We have continued our work by challenging the local authorities to implement the 30% discount in the most expedient way so that all relevant businesses receive this much-needed discount. We have already written to the LGA (Local Government Association), reminding them to support retail businesses by making it easy to claim the discounts.”
However, it appears the implementation may not be as uniform as Bira was hoping for, mainly due to the different legacy systems used by local authorities. This is relevant because an independent retail business may have premises in more than one local authority or council and it would be a mistake to expect the same treatment from each authority.
Andrew said: “Councils have had five months to prepare for the reduction in rates and while some have been quick to act and are automatically applying the discount, others are woefully behind and small retail businesses will suffer as a result. We have also been informed by one of our members that their council has stated that the bills may not be adjusted, which is hugely damaging to the business’ cash flow.”
Bira recommends that independent retailers contact their local authority, (for each of their premises if they have more than one) and establish how their local authority or council intends to implement the rates discounts. Some local authorities that are ready and prepared will automatically reduce the rates bill but others are asking retail businesses to complete a form to apply for the discount.
Andrew added: “Together we have fought hard to obtain this discount and it would be a real shame if any business paid more rates than it needed to.”
Top: Bira welcomed Chancellor Philip Hammond’s announcement of business rates discounts in last October’s budget. However, the implementation of discounts does not seem to be uniform.
