Businesses rates and changes in the Budget

Many small local businesses received good news in the Budget with an announcement of further business rate relief. 

Chancellor Rishi Sunak revealed a range of discounts for retailers and hospitality and leisure businesses including pubs for one year as a result of the potential impact of the Coronavirus.

West Oxfordshire businesses are being advised that business rates bills they are receiving this week do not take into account the Budget changes.

This is because the changes are set to be introduced on 1 April but have to be ratified by Parliament. As a result, eligible businesses should continue with the current payment schedule until they receive further instructions via an amended bill.

They will then be reimbursed by the Council in due course.

Jon Dearing, Group Manager for Resident Services, said: “By law we have to issue the letters now so businesses can have 14 days’ notice of what they will be charged.

“It is unfortunate timing but affected businesses can rest assured that any overpayment on their part will be refunded as soon as possible.”

The changes announced in the Budget include:

• For retail businesses with a rateable value of under £51,000 the discount will be increased to 100 per cent and expanded to include hospitality and leisure businesses for 2021.
• Pubs with a rateable value below £100,000 will enjoy a discount of £5,000 rather than £1,000.

The government is launching a “fundamental review” of business rates to report in the autumn.