Government gives green light for £444K rates relief pot for firms facing big hikes in Rochdale

The Baum could benefit from rates relief fund

The Chancellor Philip Hammond has announced a discretionary fund for businesses hit badly by the business rates revaluation shake-up.

The Government published a consultation on how this relief fund should be divided up and how local authorities could exercise discretion in granting relief.

The Department for Communities and Local Government has confirmed that "the government has considered the responses to the consultation on the scheme announced at Spring Budget 2017 for discretionary business rates relief and determined that final allocations to local authorities will be made according to the draft allocations published as part of the consultation." Meaning that: “Councils are free to start using the scheme and helping local businesses.”

This announcement paves the way for £444,000 to Rochdale for distribution to businesses here facing huge hikes in rates, spread out as follows across the next four years under the new revaluation;

• £259,000 in 2017/18
• £126,000 in 2018/19
• £52,000 in 2019/20
• £7,000 in 2020/2021

Two popular Rochdale pubs, The Baum and The Healey, are being hit by a huge rise in business rates that outraged owner Simon Crompton has condemned as a "joke".

https://www.rochdaleonline.co.uk/news-features/1/business-news/108815/the-baum-being-hit-with-a-100000-increase-in-rateable-value

Mark Rigby, Chief Executive of CVS Business Rent & Rates Specialists said: "I am heartened that the Department for Communities and Local Government have sought to clarify their stance over this important and much needed initiative and I would now urge Rochdale Council to expedite the distribution of this relief to those firms hardest hit by the Revaluation.

“Business rates bills have already been sent out and the first tax instalment has been collected, so it is vital that available relief is granted to those who need it as urgently as possible.”

A DCLG Spokesman said: "Councils should establish their own schemes to distribute funds to local firms and can claim the funding from DCLG as soon as their schemes are up and running."

Victoria Bradshaw, Rochdale Borough Council assistant director of finance, said: “We are waiting for confirmation from the Government that the discretionary business rate relief scheme is going ahead and will progress a local policy once any allocation is confirmed.”