A business rates relief scheme which will benefit nearly 200 businesses in Erewash has been given the green light at an Erewash Borough Council meeting this week.
The move comes following a national government revaluation of all commercial properties in England and Wales, leading to new rates payable by business owners. The last revaluation was in 2010 and the latest one has resulted in the business rates of some premises in the borough increasing significantly.
The government has made a funding pot available for local authorities to cover a four year period to help the predominantly small, medium and independent businesses facing the steepest increases in their bills as a result of the revaluation.
Erewash Borough Council’s share of this additional funding is £251,000 which will be distributed to local businesses over four years through a new rates relief scheme that councillors are expected to support at the Full Council meeting on Thursday 12 October.
The scheme will target the funding at those premises with a rateable value not exceeding £100,000 and work across two bands – those with a value up to £20,000 and those with a value between £20,001 and £100,000.
It is proposed that relief awarded to businesses in the lower band will cover the increase in business rates payable as a result of the revaluation between the 2016/17 and 2017/18 financial years, while the funding will be used to ensure the increase payable by businesses in the upper band will be limited to 1.5%
Councillor Wayne Major, Erewash Borough Council’s Deputy Leader and Lead Member for Resources, says:
“We continue to do everything within our power to encourage business growth across the borough, creating opportunities for local people and helping to generate new jobs. This proposed scheme will target relief at businesses that are facing a significant increase in their business rate bills in order to minimise financial hardship.”
It is recommended to the meeting that the relief is distributed to the eligible local businesses automatically and efficiently without the need for an application process.
The funding is ‘front-loaded’, meaning £141,000 is available for the current financial year followed by £68,000 in 2018/19, £38,000 in 2019/20 and £4,000 in 2020/2021.