In the 2017 Spring Budget, the Chancellor announced that a new scheme of relief would be made available to those ratepayers facing large increases as a result of the loss of rural rate and small business rate relief due to the revaluation.
To support these ratepayers, the ‘Supporting Small Businesses’ relief will ensure that the increase per year is limited to the greater of:
- a percentage increase of 5%, 7.5%, 10%, 15% and 15% in 2017/18 to 2021/22 all plus inflation. Unlike the transitional relief scheme, for the first year of the scheme the percentage increase is taken against the bill for 31 March 2017 after small business rate relief or rural rate relief; and
- a cash value of £600 per year (£50 per month). This cash minimum increase ensures that those ratepayers paying nothing or very small amounts in 2016/17 after small business rate relief are brought into paying something
- This has recently been extended for an additional financial year into 2022/23
Ratepayers remain in the Supporting Small Businesses relief scheme for either 5 years or until they reach the bill they would have paid without the scheme.