Some businesses struggle to pay business rates because the tax is payable whether or not they have made a profit.
Small retail businesses that occupy properties with a rateable value of less than £51,000 can apply to their local authority to get one third off their business rates bill. From April 2020 this discount will be increased to 100% of the business rates bill. This retail relief will also be extended to the leisure and hospitality sectors.
Pubs are particularly hard hit by business rates as they tend to have a relatively large floor area. Where the rateable value of the pub is less than £100,000 the management will be able to apply for a £5,000 discount on their rates bill for 2020-21.
Local authorities will be fully compensated for all business rates discounts claimed by small businesses in their area.
