Government aims to bring forward small business rates relief

The Government has intervened in an attempt to bring forward small business rates relief for up to some 25,000 firms.

The background to small business rates relief

In March, Chancellor Philip Hammond promised a £300m discretionary hardship fund to support small businesses. At least, the ones who had been hit by a hike of up to 3,000% in their rates from April.

However, a large proportion of the businesses affected are yet to receive any help from this fund.

Local Councils also state they have been unable to send out new bills. This is due to them awaiting guidance from Westminster.

In addition, Councils have been seeking software updates to process the thousands of rateable values affected by the changes.

However, the software providers responsible for these updates – Capita, Civica and Northgate Public Services – are yet to deliver what was promised.

What measures is the Government now taking?

While the Government denies Councils having to wait for guidance, Local Government Minister, Marcus Jones, has written to local authorities to ask that they begin re-billing businesses as soon as possible.

The Minister has also summoned all three software providers to talks in Whitehall, setting a deadline of 21 August for the software update to be provided. However, it remains to see whether this deadline was met.

Small businesses are yet to receive the clarity they’ve been calling for on this issue. However, the latest steps by the Government suggest an end might now be in sight.

Find out more about the latest legislative changes that could impact small business finances by calling on 3 Wise Bears.