Business Support Grants and Business Rates
Business Rates Update 12 April 2021
UK Government Support for Business
Central government has provided consolidated information to support business in response to this pandemic. This information can be found at [GOV.UK – Support for Business]
On 3 March 2021, the government confirmed that the Expanded Retail Discount would continue to apply in 2021/22 at 100% for three months, from 1 April 2021 to 30 June 2021, and at 66% for the remaining period, from 1 July 2021 to 31 March 2022. The government confirmed that there would be no cash cap on the relief received for the period from 1 April 2021 to 30 June 2021. From 1 July 2021, relief will be capped at £105,000 per business, or £2 million per business where the business is in occupation of a property that was required, or would have been required, to close, based on the law and guidance applicable on 5 January 2021.
This relief has been applied to the rates accounts of qualifying businesses. We will confirm how we will administer the scheme from July and what you will be required to do before the first rates instalment is due in July 2021.
In the Chancellors budget on 3 March 2021 he announced a Restart Grant scheme – The government will provide ‘Restart Grants’ in England of up to £6,000 per premises for non-essential retail businesses and up to £18,000 per premises for hospitality, accommodation, leisure, personal care and gym businesses.
Restart Grant Scheme
Grants of up to £6,000 will be paid to non-essential retail business premises, to help them reopen safely.
Grants of up to £18,000 will be allocated to hospitality, accommodation, leisure, personal care and gym business premises, which may open later under plans set out in the roadmap and will be more impacted by restrictions when they do reopen. The Restart Grant scheme supports businesses that are predominantly reliant on delivering in-person services for the general public in the sectors. This scheme only applies to businesses in the rating list.
The Restart Grant will support non-essential retail premises with one-off grants of up to £6,000 in Strand One of the Restart Grant. The following thresholds apply for these businesses:
- Businesses occupying hereditaments appearing on the local rating list with a rateable value of exactly £15,000 or under on 1 April 2021 will receive a payment of £2,667.
- Businesses occupying hereditaments appearing on the local rating list with a rateable value over £15,000 and less than £51,000 on 1 April 2021 will receive a payment of £4,000.
- Businesses occupying hereditaments appearing on the local rating list with a rateable value of exactly £51,000 or over on 1 April 2021 will receive a payment of £6,000.
The Restart Grant will also support hospitality, accommodation, leisure, personal care and gym business premises with one-off grants of up to £18,000 in Strand Two of the Restart Grant. The following thresholds apply for these businesses:
- Businesses occupying hereditaments appearing on the local rating list with a rateable value of exactly £15,000 or under on 1 April 2021 will receive a payment of £8,000.
- Businesses occupying hereditaments appearing on the local rating list with a rateable value over £15,000 and less than £51,000 on 1 April 2021 will receive a payment of £12,000.
- Businesses occupying hereditaments appearing on the local rating list with a rateable value of exactly £51,000 or over on 1 April 2021 will receive a payment of £18,000.
Restart grant application & payment process
- An application is not required if you have applied for a previous grant since 5 November 2020
- If you have not previously applied for a grant please email firstname.lastname@example.org with the subject as Restart Grant and your rate account number.
- Payments will be made to the non-essential retail sector first.
- Payments to the hospitality, accommodation, leisure, personal care and gym and sports sectors will follow directly after the above.
- Payments will commence starting from 15 April 2021. You will receive an email notification when payment is made.
Grants schemes prior to 31.03.2021
The grant schemes that operated in the 2020-21 financial year have now closed except for the national restriction grants that applied between 15 February 2021 and 31 March 2021.
Please note that only applications in relation to the above scheme can be considered.
The rateable value bands for the grant below is as follows:
Up to and including £15,000
£51,000 and above.
Grants schemes prior to 31.03.2021
|Grant Scheme Period||Scheme||No of days applicable in City||Amounts payable based on RV band||Scheme closing date for applications|
|16 February 2021 - 31 March 2021||National Lockdown 3 (LRSG Closed Addendum)||44 days||
Business Grant Payments for National Restrictions Support Grant Lockdown 3
This grant is payable for the period when full National Restrictions were in place. This grant scheme is applicable between 16 February 2021 to 31 March 2021. This scheme will close on 31 May 2021.
Eligible businesses will receive payment within three weeks of submitting a properly completed application form.
Eligibility - All businesses that are ratepayers and that were instructed to close by the recent Government regulations during the national restrictions. This includes non-essential retail, leisure, personal care, sports facilities and hospitality businesses.
More information about Central government support for businesses is available at [GOV.UK – Support for Business]
Under the business rates retention arrangements, introduced from 1 April 2013, local authorities keep a proportion of business rates raised.
However, due to the amount of rates collected by the City of London Corporation, it pays a tariff to central Government to be redistributed to local government. As a result, the amount retained is quite small compared with the amount collected.
The City Corporation share of rate income and the income from its council tax payers is used to pay for the services provided by us and other local authorities in your area.
Because of its special circumstances - notably its very small resident population and high daytime population - the City Corporation can set its own rate and retain part of the proceeds to help pay for the services it provides. The City Corporation keeps the sum resulting from the premium which has been levied, following consultation, to further enhance the Police Service, security, resilience and contingency planning in the City.
For further information, please use the links on the left to navigate around and, if you are unable to find the information you require, refer to the contacts page.
If you have a business rate account with the City Corporation you can register to view your account details online. For further information about this self service facility please see our business rates online page.