Decision details

This report covers new business rate relief that the Government has announced for 2024/25.

The 2024/25 Retail, Hospitality and Leisure Business Rates Relief Scheme will provide eligible, occupied, retail, hospitality and leisure properties with a 75% relief, up to a cash cap limit of £110,000 per business. This scheme will operate for the 2024/25 year only.

As the scheme is designed for a limited period only, the Government is not making changes to legislation, but instead providing detailed guidance, and asking local authorities to use powers under s47 of the Local Government Finance Act 1988 to set up the schemes. Government will then fully repay the cost of relief awarded in line with their guidance.

This report covers new business rate relief that the Government has announced for 2024/25.

The 2024/25 Retail, Hospitality and Leisure Business Rates Relief Scheme will provide eligible, occupied, retail, hospitality and leisure properties with a 75% relief, up to a cash cap limit of £110,000 per business. This scheme will operate for the 2024/25 year only.

As the scheme is designed for a limited period only, the Government is not making changes to legislation, but instead providing detailed guidance, and asking local authorities to use powers under s47 of the Local Government Finance Act 1988 to set up the schemes. Government will then fully repay the cost of relief awarded in line with their guidance.

Decision made and reasons:

This decision adopts the following discretionary business rate relief schemes.

2024/25 Retail, Hospitality and Leisure Business Rates Relief Scheme

This is a scheme to cover the period 1 April 2024 to 31 March 2025, for eligible properties occupied by qualifying retail, hospitality and leisure businesses.

Eligibility for the relief matches the conditions for 2023/24 Retail, Hospitality and Leisure Business Rates Relief scheme. Where a ratepayer is currently receiving the previous relief, it will automatically be included on the annual bill for 2024/25. Other businesses will be able to apply for the relief after they have received their bill for 2024/25.

A business will be able to refuse the relief, but once this has been done they will not be able to change this decision.

The relief will be 75% of the business rates bill for this period, calculated on a daily basis.

There will be a cash cap on the total value of relief a business can receive, which is £110,000.

The relief is also subject to subsidy control (state aid) thresholds.

Ability to opt-out

Any business will be able to opt out of receiving relief under this scheme for any particular hereditament. They will be able to do this by writing to the Council to tell us this. Any decision to opt out of the scheme is irreversible.

The detailed guidance for this scheme can be found at Business Rates Relief: 2024/25 Retail, Hospitality and Leisure Scheme - GOV.UK (www.gov.uk)

Under the 2023/24 scheme, 675 businesses are receiving relief, to a total value of £6.3 million.

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

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