With businesses deemed non-essential being ordered to close their doors for an indefinite period, in this report we examine what help is available if this affects your business.
Business Rates Holiday for Retail, Hospitality and Leisure Businesses
The Government is introducing a business rates holiday for retail, hospitality and leisure businesses in England for the 2020/21 tax year.
Businesses that received the retail discount in the 2019/2020 tax year will be re-invoiced by the local authority as soon as possible.
You are eligible for the business rates holiday if:
- your business is based in England
- your business is in the retail, hospitality and/or leisure sector.
Properties that will benefit from the relief will be occupied hereditaments that are wholly or mainly being used:
- as shops, restaurants, cafes, drinking establishments, cinemas and live music venues
- for assembly and leisure
- as hotels, guest and boarding premises and self-catering accommodation.
How to access the scheme
You do not need to do anything. This will apply to your next council tax bill in April 2020. However, local authorities will have to re-issue your bill to exclude the business rate charge. They will do this as soon as possible.
Cash Grants for Retail, Hospitality and Leisure Businesses
The Retail and Hospitality Grant Scheme provides businesses in the retail, hospitality and leisure sectors with a cash grant of up to £25,000 per property. For businesses in these sectors with a rateable value of under £15,000, they will receive a grant of £10,000. For businesses in these sectors with a rateable value of between £15,001 and £51,000, they will receive a grant of £25,000.
You are eligible for the grant if:
- your business is based in England
- your business is in the retail, hospitality and/or leisure sector.
Properties that will benefit from the relief will be occupied hereditaments that are wholly or mainly being used:
- as shops, restaurants, cafes, drinking establishments, cinemas and live music venues
- for assembly and leisure
- as hotels, guest and boarding premises and self-catering accommodation.
How to access the scheme:
You do not need to do anything. Your local authority will write to you if you are eligible for this grant. Guidance for local authorities on the scheme will be provided shortly. Any enquiries on eligibility for, or provision of, the reliefs and grants should be directed to the relevant local authority.
Support for Businesses that pay Little or No Business Rates
The Government will provide additional Small Business Grant Scheme funding for local authorities to support small businesses that already pay little or no business rates because of Small Business Rate Relief (SBRR), Rural Rate Relief (RRR) and tapered relief. This will provide a one-off grant of £10,000 to eligible businesses to help meet their ongoing business costs.
You are eligible if:
- your business is based in England
- you are a small business and already receive SBRR and/or RRR
- you are a business that occupies property
How to access the scheme:
You do not need to do anything. Your local authority will write to you if you are eligible for this grant. Guidance for local authorities on the scheme will be provided shortly.
Any enquiries on eligibility for, or provision of, the reliefs and grants should be directed to the relevant local authority.
Insurance Claims
Businesses that have cover for both pandemics and Government-ordered closure should be covered.
The Government and insurance industry confirmed on 17 March 2020 that advice to avoid pubs, theatres etc. is sufficient to make a claim as long as all other terms and conditions are met.
Insurance policies differ significantly, so businesses are encouraged to check the terms and conditions of their specific policy and contact their providers. Most businesses are unlikely to be covered, as standard business interruption insurance policies are dependent on damage to property and will exclude pandemics.
Comment
These grants for businesses are typically targeted at smaller enterprises in the retail, hospitality and leisure business sector.
There will be other larger businesses in this sector who will not benefit from these grants and these businesses will be expected to use the Coronavirus Job Retention Scheme and the Government Backed Business Loans Schemes.