In October 2018, Bira was delighted when the Chancellor Philip Hammond announced a 30% business rates discount in his budget, much to the relief of many retailers across the board, to include gift retailers. He explained that the reduction would be applied to all retail premises below the £51,000 threshold, and that businesses would still receive the small business rates relief applicable to businesses with a rateable value below £12,000.
However, the Association has become increasingly aware of a lack of uniformity in the way local authorities are implementing the 30% discount, with some automatically applying it and others require a form to be filled in.
“This was a real win for the smaller independent retail businesses and a real reward for Bira’s campaign to reduce the burden of business rates,” explains Bira’s ceo Andrew Goodacre.
“We have continued our work by challenging local authorities to implement the 30% discount in the most expedient way so that all relevant businesses receive this much needed discount. We have already written to the Local Government Association (LGA) reminding them to support retail businesses by making it easy to claim the discounts.”
It appears however, that the implementation may not be as uniform as Bira, among others, were hoping for, primarily due to the different legacy systems used by local authorities. “This is relevant because an independent retail business may have premises in more than one local authority or council and it would be a mistake to expect the same treatment from each authority,” Andrew continues.
“Councils have had five months to prepare for the reduction in rates, and while some have been quick to act and are automatically applying the discount, others are woefully behind which means that small retail businesses will suffer as a result. We have also been informed by one of our members that their council has stated that the bills may not be adjusted, which is hugely damaging to a business’ cash flow.”
Bira’s recommendation is that retailers contact their local authority for each of their premises, if they have more than one, and establish how their local authority or council intends to implement the rates discounts. The Association points out that some local authorities who are ready and prepared will automatically reduce the rates bill while others are asking retail businesses to complete a form to apply for the discount. Either way, Bira says that it is really important that retailers take the initiative and contact the authorities so they are well prepared.
Adds Andrew: “Together we have fought hard to obtain this discount and it would be a real shame if any business paid more rates than it needed to.”
Top: Bira’s HQ in Birmingham.
