Changes to Business Rates announced in the Budget on 11 March 2020

Good news!

There have been a number of changes to the calculation of Business Rates for 2020 which were announced in the Budget on 11 March 2020 and subsequently. 

Unfortunately your annual bill was issued before we became aware of these changes and we are currently awaiting the detail for how this will work.  When we have this information we will put it on our website and through social media. Your previous business rate bill will be replaced in due course if you are entitled to any additional reliefs.

If you are unable to make any current business rate payments then please contact us at revenues@lincoln.gov.uk or call on 01522 873342. We will be proactively cancelling direct debit payments due in April 2020, in respect of businesses likely to fall into the categories entitled to relief.

Retail relief

The government has already announced the Business Rates retail discount will be increased to 50% in 2020-21. To support small businesses affected by COVID-19 the government is temporarily increasing it further to 100% for 2020-21.

The relief will be increased to 100% for eligible retail business occupying a property with a rateable value of less than £51,000.

The relief will also be expanded to include the leisure and hospitality sectors such as Museums, Art Galleries, Theatres, Caravan Parks, Gyms, Hotels, B&Bs, Sports Clubs, Night Clubs, Club Houses, Guest Houses.

If your business falls into one of these new categories, you will need to complete the retail relief form and ensure you complete the State Aid declaration.

Public House Relief

The government has also already announced the introduction of up to £1,000 Business Rates discount for pubs with a rateable value below £100,000 in England for one year from 1 April 2020. To support pubs in response to COVID-19 the discount will be increased to up to £5,000.

These changes will have effect for 2020/21. State aid rules apply to these discounts in the normal way.

Small Business Grant Funding

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. The Government will publish guidance to help local authorities implement the grant.

Small Business Grant

Up to £25,000 cash grant will be available for small businesses with a rateable value of less than £51,000. This will include businesses in the hospitality, retail and leisure sector.

Business Rate Holiday

A business rate holiday of 12 months has been announced for businesses in the hospitality, retail and leisure sectors. More details will be provided as they become available.

In the meantime if you are unable to make any current business rate payments then please contact us at revenues@lincoln.gov.uk or call on 01522 873342.

Government Backed Loan Guarantees for Businesses

The government have announced £330bn of government backed loan guarantees for businesses. More details will follow when they are available.

More details can be found regarding business loans on the British Business Bank, Coronavirus Business Interruption Loan Scheme webpage.

If you have any concerns about your business please call the HMRC helpline on 0800 015 9559.

We will work on making the changes to your account as soon as more specific details become available.