Thousands of small business to benefit from rates holiday in Warwick district

As part of its budget announcement on Wednesday, the Government said that companies in England with a rateable value of less than £51,000 will be eligible for a tax holiday for the coming financial year.

Warwick District Council has said that across the district circa 600 properties will receive the 100 per cent retail discount which is in addition to the 1,700 properties that already qualify for 100 per cent small business rate relief too.

So 2,300 properties out of 5,400 - or more than 42 per cent - of ratepayers will receive a 'nil bill' for business rates for 2020/21.

Stephanie Kerr, executive director of BID Leamington, said: “We were pleased to see this additional support provided to our smaller shops, cafes and restaurants which offers some much needed short term relief and in some cases will be a real lifeline.

"However, we are aware this does not help our larger retail and leisure sector businesses, including a number of independent traders, who are also having a difficult time and contribute significantly to the local economy.

"Going forwards, we are providing information to our members to ensure they know how to access these benefits, and alongside The BID Foundation, FSB, Chambers and other industry bodies, continue to lobby the government for further reforms to put all businesses on a level playing field”.

The tax holiday announcement was made by Chancellor Rishi Sunak as part of a package of "extraordinary" measures to support the UK economy in the face of disruption from the coronavirus outbreak.

Mr Sunak said the tax cut could be up to £1 billion, saving each business up to £25,000,

The measure applies to firms including shops, cinemas, restaurants and hotels.

Business rates are a tax on properties that are used for commercial purposes, and are charged based on an estimate of what it would cost to rent the property on the open market: the "rateable value".