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Budget changes - rate relief for small businesses

 The Chancellor announced in his budget of 23 March 2011 that the small business rate relief scheme will continue for another 12 months, subject to the passing of secondary legislation, to enable that to happen.

Immediately after the March budget, the Department for Communities and Local Government (DCLG) urged councils to issue a letter to affected ratepayers about the announcement to tell them of the change and to advise them to keep paying at their current rate until they receive an amended bill.   Here is the text of the letter, provided to councils by DCLG:



This is important news for your business. The Chancellor of the Exchequer announced at the Budget extra help for small businesses.

The current temporary increase in Small Business Rate Relief, which started on 1 October 2010 and was due to end on 30 September 2011, will now continue for a further year (1 October 2011 to 30 September 2012).

The measure doubles the usual rate of relief so that ratepayers with rateable values below £6,000 pay no rates at all for the period, while ratepayers with rateable values between £6,000 and not more than £12,000 receive tapered relief from 100% - 0%.

There are no other changes to the scheme and the Government has confirmed that it will meet the costs of the increased levels of relief.

You need take no action. Once the legislation is in place, you will be sent a revised bill. In the meantime, you must continue to pay your current instalments, if you have any. Current collection and enforcement procedures will continue to apply to ratepayers who miss scheduled instalments.



earlier notes on Small Business Rate Relief.......

In the 2010 budget on 24 March 2010 the Chancellor announced some changes which temporarily increase the level of Small Business Rate Relief so that eligible ratepayers  receive relief at 100% on properties with rateable values up to £6,000, with a tapered relief of between 100% and 0% for properties with rateable values between £6,001 and £12,000.  The new levels of relief apply for 12 months from 1 October 2010 to 30 September 2011.    The eligibility criteria will remain the same as before.

This is the fact sheet we sent to all non-domestic ratepayers of properties with a rateable value of £12,000 and below, to explain the changes.  adobe icon Read the letter & factsheet [76kb]

More information and application form for Small Business Rate Relief

Updated: 2 Apr 2015
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