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Supporting small businesses relief

On 8 March 2017, as part of the 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 small business rate relief.

The Supporting Small Businesses relief will help those ratepayers who as a result of the change in their rateable value at the revaluation are losing some or all of their small business relief and, as a result, are facing large increases in their bills. The scheme will last for a period of five years from 2017 to 2018 until 2021 to 2022.

In the first year of the scheme, 2017 to 2018, this means all ratepayers losing some or all of their small business rate relief will see the increase in their bill capped at £600. The cash minimum increase is £600 per year (plus inflation) thereafter. This means that ratepayers who were paying nothing under small business rate relief and are losing all of their entitlement to relief would under this scheme be paying an additional £600 each year taking this to a final increase of £3,000 (plus inflation) by year 5.

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. A change of ratepayer will not affect eligibility for the scheme, but eligibility will be lost if the property falls vacant or becomes occupied by a charity or community amateur sports club (CASC).

The scheme will be administered through the Council’s discretionary relief powers under Section 47 of the Local Government Act 1988 (as amended).

Qualifying ratepayers were automatically awarded this relief in early October 2017, and new bills were issued confirming the new amounts payable.

Any entitlement to this relief will automatically be deducted from annual bills.

The relief is only applicable if you remain in occupation and may be subject to adjustment or removal should your rateable value change.

State aid

This relief needs to comply with the law on state aid. Therefore, to qualify for this relief, your business should not receive more than the maximum allowable amount of de minimis State Aid.  This may be particularly relevant to those premises that are part of a large retail chain, where the cumulative total of reliefs received could exceed this amount.

Further information on state aid can be found at www.gov.uk/state-aid

If your business has exceeded the state aid limits, you must advise us so the relief can be cancelled.

Should you have any enquiries in connection with this relief, you can call the business rates team on 0121 303 5509 or email business_rates@birmingham.gov.uk, quoting the payment reference number as shown on your bill.

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