Decision details

Business rates retail and pubs discount 2020-21

Decision Maker: Portfolio Holder for Corporate Services

Decision status: Recommendations Approved

Is Key decision?: Yes

Is subject to call in?: No

Purpose:

Government has announced its intention to implement an enhanced business rates retail discount for 2020/21, and to introduce a further relief for pubs. This decision is to formally adopt the schemes for Dacorum businesses.

 

Decision:

Government has announced its intention to implement an enhanced business rates retail discount for 2020/21, and to introduce a further relief for pubs. This decision is to formally adopt the schemes for Dacorum businesses.

 

Reasons for the decision:

(1) To introduce a discretionary business rate relief for the year 2020/21 for occupied retail properties with a rateable value of less than £51,000, to be known as the Retail Discount scheme 2020/21.

 

·         The value of the relief will be one half of the bill, applied after all other mandatory and discretionary reliefs except Pub Relief.

·         This is an extension to the currently agreed retail discount scheme which has a value of one third of the bill.

 

(2) To introduce a discretionary business rate relief for the year 2020/21 for occupied pubs with a rateable value of less than £100,000, to be known as the Pub Relief scheme 2020/21.

 

·         The value of the relief will be up to £1,000, applied to the balance of the bill after all other mandatory and discretionary reliefs have been applied.

 

Both reliefs will be awarded in line with the detailed guidance provided by the Ministry of Housing, Communities & Local Government. The awards are subject to state aid regulations.

 

The schemes were announced in a written ministerial statement by the Financial Secretary to the Treasury, and are designed to support small businesses during the next year, before the next business rates revaluation takes place. As it is only for a limited period of time the Government will not legislate for this change, and instead expects local authorities to use their discretionary powers under section 47 of the Local Government Finance Act 1988.

 

The Government will reimburse the full cost of the local share of awarding these reliefs.

 

Authority to make decisions of this type has been delegated to the Portfolio Holder (Finance & Resources) by cabinet decision CA/78/17.

 

Alternative options considered:

The only alternative option is not to introduce the scheme. This has been rejected because of the risks to local businesses, and the risk of reputational damage to the Council.

 

Urgent item?: Yes

Publication date: 26/02/2020

Date of decision: 26/02/2020

Accompanying Documents: