Budget 2020 - how this will affect my business rates bill

The Budget announced on 11 March confirmed a range of immediate measures to provide further support around business for 2020/21 with the addition of a series of temporary rate reliefs and support for businesses in response to the coronavirus pandemic. This has been followed by a series of statements from the Government on additional measures to be introduced to support business through the current situation.

These new measures mean that some business rates bills already sent to businesses for the coming year will need to be revised and reissued. These will be issued as soon as possible following new legislation.

We have put together some FAQs for businesses and these will be updated as and when we receive further information from the Government.

What are the new support measures that have been announced?

Businesses in the retail, leisure and hospitality sectors (including pubs) will receive 100% rate relief for 2020/21 irrespective of rateable value - subject to state aid limits and qualifying criteria.

  • Businesses who receive small business rates relief (rateable value less than £15,000) will be eligible to apply for a £10,000 grant in 2020/21 on top of their existing relief
  • We are still waiting for final legislation from the Government on all proposed measures.
  • A grant of up to £25,000 could be payable to businesses in receipt of the Retail Relief with a rateable value of between £15,000 and £51,000.
  • Registered Nurseries will receive a 100% rate relief for 2020/21 irrespective of rateable value.

Grants will apply to businesses which were in receipt of the qualifying reliefs as at 11 March 2020.

Measure Details Ealing approx.  financial value Current situation Likely payment/receipt date
Retail relief Relief of 100% for all qualifying retail, leisure and hospitality properties including public house. Now extended to include Estate Agents, Betting shops and Bingo Halls 
 

£12.2m for current Retail Relief cases

New value yet to be calculated for new cases (RV > £51K) and those in Leisure and Hospitality


 Guidance now received from CLG (24/3/20)
Direct Debits due to be taken on 1 April will be stopped
Likely to re-bill early April
Small Business Grant Fund (SBGF) Businesses who qualify for Small Business Rate Relief (many of whom already have no rates liability) will now get a grant of £10k per property   £33.3m cash grant in addition to reductions to NNDR bills (worth £10m)
Ealing has 2,892 business paying no rates and a further 434 paying reduced rates.

Initial guidance received from CLG (24/3/20). Further clarification requested on grant process.

Cash will issued to councils and payment arranged as close as possible to 1 April

 Week starting 6 April
Retail Hospitality and Leisure Grant Fund (RHLGF) The properties already identified as being in receipt of Retail Relief (RV less than £51K)  will receive a grant payment of £25k.

£26.9M cash grant to1,074 current Retail Relief cases

We estimate a further £15.0M  cash grant to be paid to the new classes of retail properties identified in Leisure & Hospitality Industry. 

Initial guidance received from CLG (24/3/20). Further clarification requested on grant process.

Cash will issued to councils and payment arranged as close as possible to 1 April

Week starting 6 April
Nursery Relief Relief of 100% for all registered nurseries. £900k Guidance now received from CLG (24/3/20). Direct Debits due to be taken on 1st April will be stopped Likely to re-bill early April

My business has a rateable value of under £51,000 and I already receive retail discount will I need to apply for the new 100% rate relief?

No, if your existing bill for the coming year shows 50% retail discount then you do not need to take any action nor make any payment. Your bill will automatically be updated to show the 100% rate relief.

My business has a rateable value of under £51,000 and is classified as retail, leisure or in the hospitality sector (including pubs) will I need to apply for the new 100% rate relief?

No, the Council will aim to automatically identify those businesses within the retail, leisure & hospitality sectors eligible business for the enhanced relief and reissue your business rates bill as soon as we are able to.

If you believe that your business should qualify but you do not receive a revised bill by 30 April you should contact the Business Rates Team at  businessratesteam@ealing.gov.uk or tel: 020 8825 7020.

If your application does not fulfil the eligibility criteria you will have to pay the amount stated in your existing business rates bill for 2020/21.

If you pay business rates on a pub with a rateable value of under £51,000 and already receive pub relief this will no longer be applicable as you are entitled to 100% rate relief for 2020/21 under your status as a hospitality business with a rateable value of under £51,000. You do not need to pay any amount stated on your original bill.

If no relief is shown on your bill but you believe you should be eligible, please contact the Business Rates Team at businessratesteam@ealing.gov.uk or tel: 020 8825 7020.

I receive retail rates relief and have a rateable value of less than £51,000 How do I apply for the additional £25,000 grant?


We will automatically pay grant payments to those qualifying for Retail, Hospitality & Leisure Grant Fund.
If you believe that your business should qualify but you do not receive a revised bill or grant payment by 30 April you should contact the Business Rates Team at businessratesteam@ealing.gov.uk or tel: 020 8825 7020

I pay business rates for a pub with a rateable value of over £51,000 but less than £100,000 will the new rate relief of £5,000 be automatically applied?

Yes, the council will identify your business as an eligible business for the enhanced relief and reissue your business rates bill in the coming weeks.

You can choose to pay your first instalment as stated in your original bill prior to your revised bill being issued, if you do this your subsequent payments will be reduced in accordance with your new bill amount. You may also choose to delay payment and  commence these once your revised bill is issued, if you decide to do this you will still be liable to pay the full amount by the end of 2020/21.

I don’t receive small business rates relief is this automatically applied if I am eligible?

If you have not previously received small business rates relief you do have to apply for this. To be eligible you must have a rateable value of less than £15,000 and occupy one property (in some cases businesses can occupy more than one).

Small business rates relief application form

I receive small business rates relief how do I apply for the additional £10,000 grant?

We will automatically pay grant payments to those qualifying for Small Business Grant Fund.

If you believe that your business should qualify but you do not receive a revised bill or grant payment by 30 April you should contact the Business Rates Team at businessratesteam@ealing.gov.uk or tel: 020 8825 7020

My business is not eligible for any of the new enhanced rate reliefs will my business rates bill be reissued anyway?

No, your bill will remain the same and you must pay in the timeline already set out in your existing 2020/21 business rates bill.

State aid information

It is likely that the reliefs will constitute state aid. If receipt of the reliefs would mean that your business has benefited by more than the permitted amount then you will need to advise the council so that relief can be removed.

The Government has not yet issued guidance relating to the treatment of grants.

Read guidance on state aid

Further information

Read government guidance on the support for those affected by COVID-19