The Government has pledged to compensate local authorities for the entire loss of business rates caused by a raft of relief announcements in today’s Budget.
To support small businesses affected by coronavirus, the Government is increasing it further to 100% for 2020/21.
The relief will also be expanded to the leisure and hospitality sectors.
These ‘temporary’ measures, taken together with existing small business rates relief, mean that around 900,000 properties or 45% of all properties in England will receive 100% business rates relief in 2020/211.
The Government has also already announced the introduction of a £1,000 business rates discount for pubs with a rateable value below £100,000 in England for one year from 1 April 2020.
To support pubs in response to the virus the discount will be increased to £5,000.
The Government will also provide £2.2bn of funding for local authorities in England to provide £3,000 to around 700,000 business currently eligible for small business rate relief or rural rate relief ‘to help meet their ongoing business costs’.
It said 100% business rates retention pilots in Cornwall, Greater Manchester, Merseyside, west of England and West Midlands will continue, with London retaining 67% in 2020/21.
The Government is also reviewing the terms of Public Works Loan Board (PWLB) lending and to 'further enable high quality investment by local authorities,' the Government is cutting the interest rates for investment in social housing by 1% and making an extra £1.15bn of discounted loans available for local infrastructure projects.
Chief executive officer of the Chartered Institute of Public Finance and Accountancy, Rob Whiteman, said: 'The Treasury’s rationale is to prioritise the use of PWLB for investment in services and local regeneration, and to reduce borrowing to invest in commercial property.
'This represents one of the most significant interventions by government since the inception of the prudential framework in April 2004.'
