Retail, Hospitality & Leisure to receive up to 75% business rates reduction for 2021/22 – but full rates payable for all other sectors
Rishi Sunak has announced that the business rates holiday, which was first introduced in March 2020, will be extended until the end of June 2021. The rates holiday provides 100% business rates relief to businesses in the retail and leisure sector in England.
A business rates reduction of two thirds will then be in place for the remaining nine months of the year. The reduction will be up to £2m for businesses closed during the 2021 lockdown, and a lower cap for businesses that were able to remain open.
It is likely that the business relief will need to be applied for, rather than issued automatically.
There were no changes announced for businesses in other sectors.
Grants & Loans
The Chancellor has also announced a number of grants to help businesses recover from the impact of the pandemic.
A recovery loan, with a value of £25,000 up to £10 million, will be available for all businesses. The government will provide an 80% guarantee to lenders.
A restart grant will provide up to £6,000 per property for non-essential retail, and up to £18,000 for businesses in leisure and hospitality. A further £700 million will be available for art, culture and sporting sector.
For further information get in touch with our business rates team.