Additional Support for Business Ratepayers Spring Budget 2017

The Spring Budget announced a number of measures, which benefited Business Ratepayers as detailed below.

Support for Pubs

The Government has introduced an up to £1,000 business rate discount for occupied ‘Pubs’ with a rateable value of up to £100,000, subject to state aid limits for businesses with multiple properties. This relief will apply for 2017/18 and 2018/19.

We have implemented this change on properties that we believed matched the criteria. If you have not received this relief, and wish to apply, or have received this relief and wish to cancel it, please call 0121 704 8175 or email businessrates@solihull.gov.uk.

In-line with the Government’s policy intention, eligible ‘Pubs’ are considered to:

  • be open to the general public
  • allow free entry other than when occasional entertainment is provided
  • allow drinking without requiring food to be consumed
  • permit drinks to be purchased at a bar

The following premises will not be considered for the discount:

  • restaurants
  • cafes
  • nightclubs
  • hotels
  • snack bars
  • guesthouses
  • boarding houses
  • sporting and music venues
  • festival sites
  • theatres
  • museums
  • exhibition halls
  • cinemas
  • concert halls
  • casinos

Support for Small Businesses

The Government has introduced a relief to support small businesses that have lost some or all of their small business rates relief due to a change in their rateable value as a result of the 2017 revaluation, and are now facing a large increase in their rates bill. This relief will ensure that the increase per year in the bills of these ratepayers is limited to the greater of:

  • a cash value of £600 per year (£50 per month). This cash minimum increase ensures that those ratepayers currently paying nothing or very small amounts are brought into paying something, or
  • the matching cap on increases for small properties (with a rateable value of £20,000 or less) in the transitional relief scheme

We have undertaken a review to identify those customers we believe match this criteria, and have applied this to those accounts. If you have not received this relief and believe you are entitled, please call 0121 704 8175 or email businessrates@solihull.gov.uk.

Business Rates Relief Scheme (Revaluation)

Billing Authorities were tasked with creating a scheme that would best benefit the Ratepayers’ in their areas, that were most effected by the revaluation. The total amount of relief is limited each year. Solihull’s grant allocation is:

2017/18
£'000
2018/19
£'000
2019/20
£'000
2020/21
£'000
228 111 46 7

Solihull’s scheme for 2017-18 is detailed below

The scheme will be amended each year to take account of the reductions in grant.

In order to be eligible for the relief, the following criteria must be met:

  • The rateable value of the premises must be less than £200,000
  • The ratepayer must be in occupation of the premises on 1 April 2017 and have been in continuous occupation of the property from or prior to 31 March 2017
  • The ratepayer must not be in receipt of mandatory charitable relief or community amateur sports club relief
  • The relief is aimed at smaller businesses. Large businesses and organisations including national businesses will not be eligible for the relief

The amount of relief is calculated as follows:

  • Your rates bill for 2017-18 after all reliefs (including transitional relief and small business rate relief) is compared to your rates bill for 2016-17 after all reliefs*
  • To ensure that all of the 2017-18 allocation for Solihull was utilised for local businesses, a revised scheme has been approved. The revised scheme follows the same criteria and calculation as above, however the 2.59% increase limit has been reduced to 0.00%
  • Consequently, there will be no increase in your 2017-18 bill

*The rates bill for 2016-17 has been calculated assuming the circumstances that prevail on 31 March 2017 will have existed throughout 2016-17 and similarly the rates bill for 2017-18 has been calculated assuming the circumstances that prevail on 1 April 2017 will exist throughout 2017-18. The amount of relief will be recalculated if there are any changes to your business rates liability.

Solihull’s scheme for 2018-19 is detailed below

The scheme will be amended each year to take account of the reductions in grant.

In order to be eligible for the relief, the following criteria must be met:

  • The rateable value of the premises must be less than £200,000
  • The ratepayer must be in occupation of the premises on 1 April 2018 and have been in continuous occupation of the property from or prior to 31 March 2017
  • The ratepayer must not be in receipt of mandatory charitable relief or community amateur sports club relief
  • The relief is aimed at smaller businesses. Large businesses and organisations including national businesses will not be eligible for the relief

The amount of relief is calculated as follows:

  • The amount of relief for 2018-19 is based on the amount of relief you received as at 31st March 2018, as a % of the relief granted at that date
  • You will receive the same proportion of the funding allocation for 2018-19. For example if you received 0.2% of the total funding allocation as at 31st March 2018, your relief for 2018-19 will be 0.2% of the £111,000 funding allocation for that year

You do not have to apply for this relief. If we believe that you meet the eligibility criteria we have granted the relief accordingly.

However, if you wish to refuse to receive the discretionary relief granted in relation to the premises to which we have awarded the relief, because you do not meet the eligibility criteria, or the relief granted may exceed the State Aid De Minimis limit, please contact us accordingly.

If you believe you are eligible for this relief, and have not been awarded it, please call 0121 704 8175 or email businessrates@solihull.gov.uk.

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