Myth – The council is sometimes criticised for not being able to offer local companies business rates relief.
Fact – The council, like all local authorities, makes decisions on whether businesses are eligible for relief, sends business rates bills and collects payments. However, these decisions are always made in accordance with national legislation determined by the government.
This sets out that under certain circumstances, some organisations, such as charities or small businesses, may be entitled to business rates relief.
For example, the council can offer Mandatory Charity Relief at 80% of the rates payable to charities using any non-domestic property for charitable purposes. This rate is governed by statute and requires organisations to meet a two-part test:
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The organisation must be established for charitable purposes
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The premises must be used wholly or mainly for charitable purposes
In recent months, the council has been subject to media coverage concerning local enterprises that were unable to obtain business rates relief. In these cases, the businesses were predominantly selling non-donated items for fundraising purposes, and as outlined above, eligibility for charitable rate relief requires that the premises be used wholly or mainly for charitable purposes and this activity is not classed as charitable under national legislation.
The council is always keen to help local enterprises, and our officers are happy to speak to businesses about possible plans and potential reliefs.
You can also find out more information about business rates relief here.