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Chancellor announces support for small businesses during the Coronavirus Outbreak

Published Thursday 20 August, 2020
Last updated on Friday 18 September, 2020

On the 11 March 2020 the Chancellor of the Exchequer announced in the Budget and in response to COVID-19, to provide additional business rate support to some small businesses. As a temporary measure for 2020/21 he would:

  • increase the level of the retail discount to 100per cent for eligible retail businesses occupying a property with a rateable value less than £51,000;
  • expand the retail discount to include hospitality and leisure properties, with a rateable value of less than £51,000 (such as museums, theatres, gyms and hotels); and
  • increase the level of the pubs discount to £5000 for pubs with a rateable value less than £100,000

These changes will have effect for 2020/21. State aid rules apply to these discounts in the normal way.

Small business grant funding - The Government recognises that many small businesses pay little or no business rates because of Small Business Rate Relief (SBRR). To support those businesses, the Government will provide £2.2 billion of funding for Local Authorities in England. This will provide £3,000 to around 700,000 business currently eligible for SBRR or Rural Rate Relief, to help meet their ongoing business costs.