A council is showing its support for local business rate payers.
Wellingborough Council’s resources committee approved a scheme to support local small businesses affected by rates increases due to the national 2017 business rate revaluation conducted by the Valuation Office Agency at a meeting last week.
Most small businesses will be eligible for discretionary relief from the council which will reduce the impact of business rate increases.
In the first year, it is estimated that £84,775 will be awarded to 106 businesses.
Over the next four years, eligible businesses will receive the following financial support to offset and provide a smoother transition to the new rate valuations:
Year/Level of support to offset increase:
2017-2018 - 100 per cent
2018-2019 - 70 per cent
2019-2020 - 35 per cent
2020-2021 - 5 per cent
Most small business will be eligible under the following guidelines:
- the hereditament must be occupied
- it must not have a rateable value of £200,000 or over
- the business does not receive a zero bill
- the business must not be in receipt of mandatory charitable relief (at 80 per cent)
- it is not occupied by a precepting authority
- the business must not be a multi-national company (to avoid any state aid issues)
Leader of Wellingborough Council Martin Griffiths said: “It’s fantastic that we are able to support our smaller local business in the borough.
“We know there has been some concern over rate increases; this relief is discretionary for councils and I am pleased that this proposal was widely supported at committee.
“For ease of administration business will not need to apply for support as these reliefs will automatically be applied to eligible rate payers’ accounts.”
In a submission to the resources committee Rob Hart, president of Wellingborough Chamber of Commerce, said: “The chamber welcomes the proposed scheme for discretionary rate relief as a welcome step to mitigating the impacts of the recent national revaluation for business rates.”