As a Yorkshireman I am naturally optimistic and work on the premise that “owt” is often better than “nowt” so it is pleasing that the Chancellor, Rishi Sunak (a fellow Yorkshireman), has extended the 100% rates relief for eligible retail, hospitality and leisure properties in England until 30 June 2021. From 1 July 2021 this relief reduces to 66.66% until it terminates on 31 March 2022.

However there is a slight catch insofar as this two-thirds relief effective from 1 July 2021 will be capped at £2 million per business for properties that were required to be closed on 5 January 2021 or £105 thousand per business for other eligible properties that were not required to be closed.

It is anticipated that Wales will follow suit.

Unfortunately this is not comparable to the relief available in Scotland because the relief north of the border is wider (as it includes the aviation sector) and has been set at a rate of 100% until 31 March 2022. Perhaps another example of our increasingly dis-united kingdom?

The relief, of course, is a mere “stay of execution” for many businesses who are struggling to survive. Major reform of the Business Rates system is urgently required with a reduction in the tax rate, regular revaluations, scrapping of (downwards) transitional relief, fairness, transparency and, perhaps, an introduction of an “on-line” sales tax to try to level the retail playing field between traditional High Street bricks and mortar retailers and their on-line competitors.

Should you have any queries in relation to this relief or require advice in relation to your Business Rates, please contact us at any time.