Business RatesLocal Discounts Policy

The following local relief/discount schemes are currently in place and are administered under the provision of Section 47 of the Local Government Finance Act 1988: -

Locally Administered Business Rates Relief Supporting Small Business Relief Support for Pubs Scheme - to 31.03.19 Retail Relief

This policy was approved on 6th September 2017 and replaces the former Local Discounts Policy approved in 2014 that is now null and void. Future updates to this policy have been delegated to the Section 151 Officer in consultation with the Finance Portfolio Holder, in accordance with legislation and guidance.Last updated 01.02.19

Locally Administered Business Rate Relief Scheme(Spring Budget 2017)

Overview

This document sets out the Council’s policy in relation to locally administered business rates relief under the scheme and funding announced in the Spring Budget 2017.

This scheme is administered as a discretionary relief in accordance with section 47 of the Local Government Finance Act 1988.

Boston Borough Council has been allocated a total of £228,325 out of a £300m four year national pot made available by the Government to design a local discretionary rate relief scheme to support those businesses it felt had been most adversely affected by the revaluation. The allocation of funding by year is: -

2017/18 2018/19 2019/20 2020/21 2021/22£133,190 £64,692 £26,638 £3,805 Full Rates will be payable

In line with Government guidance, the Council will provide support only to those ratepayers who are facing an increase in their bills following revaluation.

This scheme has been developed in line with the Government guidance and assumptions in terms of businesses that should be supported, i.e. that support will be provided to ratepayers that face increases in their rate bill, and occupy lower value properties.

Boston Borough Council’s policy seeks to provide a transparent, fair and consistent approach to businesses across the district to the award of rate relief. There is no differentiation between types of business, and all businesses that meet the eligibility criteria will be awarded up to the same maximum level of relief.

The schemeIn 2017/18, the scheme will award all businesses that meet the qualifying criteria up to £1,500 relief towards the increase in net rates payable resulting from the revaluation, after all other reliefs and exemptions have been applied.

The maximum relief of £1,500 in year one has been calculated by dividing the amount of funding available by the number of potential ratepayers that may qualify for relief under this scheme.

Ratepayers will be notified of the amount of local discretionary rate relief by theissue of a new rates bill.

The scheme will continue over the four year period, 2017/18 – 2020/21 with each year’s amount of relief reducing in proportion to the reduction in Government funding:

2017/18 2018/19 2019/20 2020/21 2021/22ProposedMaximum£1,500

ProposedMaximum£735

(49% of2017/18)

ProposedMaximum£301

(41% of2018/19)

ProposedMaximum £42

(14% of2019/20)

Full Ratespayable

The level of financial support drops dramatically across the four years that the Government is funding, and businesses will need to be aware of, and prepare for, an increasing business rates liability each year from 2018/19.

The policy provides for review and revision to the scheme for each financial year to ensure the Council can maximise its support to businesses within the funding provision.

Qualifying CriteriaEligible Ratepayers will: - Be in occupation of a qualifying business property on 31 March 2017 and 1 April 2017, Have an increase in the net amount of rates payable (the amount after all reliefs and other reductions have been applied) on 1 April 2017 compared to 31

March 2017 as a result of the 2017 revaluation.

A qualifying business property will: - Have a Rateable Value (RV) on 1 April 2017 of less than or equal to£100,000.

The following will not be eligible under this scheme: - Properties that are empty Organisations in receipt of Discretionary Rate Relief Schools, including academies, private schools, independent schools,

voluntary aided, voluntary controlled, church or grant aided Local and Precepting Authorities Ratepayers where the award would mean a business exceeds state aid de-

minimis level (currently €200,000) New occupiers who take on a qualifying business property on or after 1

April 2017

If a business is entitled to claim other reliefs that would otherwise mean they would be excluded from claiming this type of relief, then they will not be awarded any additional relief under this scheme.

Changes in liability will affect this reliefEligibility for the relief will be assessed and calculated on a daily basis. Relief will be adjusted, including retrospective adjustment, in cases where the amount of rates payable changes.

Application for Locally Administered Business Rate ReliefWritten applications are required on the approved application form.

State AidApplicants for local discretionary rate relief will be required to sign a declaration to confirm that, including this relief award of up to £1,500, they will not have received more than €200,000 in total of De Minimis state aid within the current financial year, or the previous two financial years.

Further information on State Aid can be found at https://www.gov.uk/state-aid

Decision MakingDecisions in respect of applications for Locally Administered Business RateRelief will be made by officers.

Complaints and AppealsWill follow the process set out in the Council’s main Discretionary Rate Relief Policy.

Supporting Small Business Relief

At the Spring 2017 Budget, the Chancellor announced that a relief scheme would be made available to those ratepayers facing large increases as a result of the loss of small business or rural rate relief.

Boston Borough Council will administer the scheme in line with Government guidance set out in Annex A of Business Rates Information Letter (4/2017) using its discretionary powers under section 47 of the Local Government Finance Act 1988 to grant relief to eligible businesses.

Eligibility CriteriaRatepayers facing large increases in their rateable value due to revaluation who are losing some or all of their small business rate relief or rural rate relief.

To support these ratepayers, the Supporting Small Businesses relief will ensure that the increase per year in the bills of these ratepayers is limited to the greater of:a) A percentage increase per annum of 5%, 7.5%, 10%, 15% and 15%

2017/18 to 2021/22 all plus inflation. For the first year of the scheme the percentage increase is taken against the bill for 31 March 2017 after small business rates relief or rural rate relief, or

b) A cash value of £600 per year (£50 per month). This cash minimum increase ensures that those ratepayers paying nothing or very small amounts in 2016/17 after small business rate relief are brought into paying something.

Application for Supporting Small Businesses ReliefWritten applications are required. Those ratepayers who are likely to be eligible have been contacted and invited to make application.

Successful applicants will be notified of the amount of discretionary reliefawarded by the issue of a new rates bill.

Ratepayers will remain in the Supporting Small Business relief scheme for either five years or until they reach the bill they would have paid without the scheme.

Conditions of the awardIn the event of a change in circumstances, Supporting Small Businesses Relief will be recalculated.

A change of ratepayer will not affect eligibility, but eligibility will be lost if the property falls vacant or becomes occupied by a charity or Community Amateur Sports Club (CASC).

State AidApplicants will be required to sign a declaration to confirm that, including this Supporting Small Business Relief they will not have received more than €200,000 in total of De Minimis aid within the current financial year, or the previous two financial years.

Further information on State Aid can be found at https://www.gov.uk/state-aid

Decision MakingDecisions in respect of applications for Supporting Small Businesses Relief willbe made by officers.

Complaints and AppealsWill follow the process set out in the main Discretionary Rate Relief Policy.

Support for Pubs Scheme (ending 31.3.19)

At the Spring 2017 Budget, the Chancellor announced a new relief scheme for pubs that have a rateable value below £100,000. Under the scheme eligible pubs will receive a £1,000 discount on their rates bill for 2017/18. Eligibility for the relief itself will be assessed and calculated on a daily basis.

Boston Borough Council will administer the scheme in line with Government guidance set out in Annex B of Business Rates Information Letter (4/2017) using its discretionary powers under Section 47 of the Local Government Finance Act 1988 to grant relief to qualifying ratepayers.

Eligibility CriteriaThe scheme will be available to eligible occupied property with a rateable value of less than £100,000.

The majority of pubs are independently owned or managed and will not be part of chains. Where pubs are part of a chain, relief will be available for each eligible property in the chain, subject to meeting State Aid requirements.

The Government’s policy intention is that eligible pubs should: be open to the general public allow free entry other than when occasional entertainment is provided allow drinking without requiring food to be consumed permit drinks to be purchased at a bar.

For these purposes, it should exclude: restaurants cafes nightclubs hotels snack bars guesthouses boarding houses sporting venues music venues festival sites theatres museums exhibition halls cinemas concert halls casinos

In cases where eligibility is unclear, Boston Borough Council will consider broader factors, i.e. in meeting the stated intent of policy that it demonstrates

the characteristics that would lead it to be classified as a pub, for example being owned and operated by a brewery. Additionally, the Government recognises that local authorities may also wish to consider other methods of classification, such as the planning system and the use classes order to help them decide whether a property is a pub or not. However, permission for a particular use class will not necessarily mean that the property meets the definition of a pub.

Application for Pub ReliefWritten applications are required.

The maximum amount of retail relief is £1,000 in 2017/18. Where the net rates liability is lower, the pub relief will be no more than the value of the net rate liability.

Successful applicants will be notified of the amount of discretionary relief awarded by the issue of a new rates bill.Ratepayers are required to notify the Council of any change in circumstances. The amount of pub relief will be recalculated on change in liability or occupation.

State AidApplicants for Retail Relief will be required to sign a declaration to confirm that, including this pub relief award of up to £1,000 in 2017/18 they will not have received more than €200,000 in total of De Minimus aid within the current financial year, or the previous two financial years.

Further information on State Aid can be found at https://www.gov.uk/state-aid

Decision MakingDecisions in respect of applications for Pub Relief will be made by officers.

Complaints and AppealsWill follow the process set out in the main Discretionary Rate Relief Policy.

This scheme ended on 31.03.19; however, backdated applications can be accepted until 30.09.19.

Retail Relief

At the Autumn Budget 2018, the government announced that it will provide a business rates Retail Discount scheme for occupied retail properties with a rateable value below £51,000 in each of the years 2019/20 and 2020/21.

The value of discount should be one third of the bill and must be applied after mandatory and other discretionary reliefs have been applied.

Boston Borough Council will administer the scheme in line with Government guidance set out at https://www.gov.uk/government/publications/business-rates-retail-discount-guidance using its discretionary powers under section 47 of the Local Government Finance Act 1988 to grant relief to eligible businesses.

Eligibility CriteriaProperties that will benefit from the relief will be occupied with a rateable value of less than £51,000, that are wholly or mainly being used as shops, restaurants, cafes and drinking establishments and will include: -

Shops (e.g. florist, bakery) Charity shops Opticians Post Offices Furnishing shops Car/caravan showrooms Second hand car lots Markets Petrol stations Garden Centres Art galleries (where art is for sale/to hire) Hair and beauty services Shoe repairs/key cutting Travel agents

Ticket offices Dry cleaners Launderettes PC/TV domestic appliance repair Funeral directors Photo processing Tool hire Car hire Restaurants Takeaways/sandwich shops Coffee shops Pubs Bars

The list below sets out the types of uses that the government does not consider to be retail use for the purpose of this relief: -

Financial services (e.g. banks, building societies, betting shops) Other services (e.g. estate agents, employment agencies) Medical services (e.g. vet, dentist, doctor, osteopaths) Professional services (e.g. solicitors, accountants, tutors) Post Office sorting offices Gyms, sports venues Nightclubs Cinemas and theatres

Applications for Retail ReliefWritten applications are not always required. Where possible, and in line with governments direction, relief has been automatically applied to accounts as part of the billing process. In some cases, the council will write to retailers inviting them to make an application.

Conditions of the awardEligibility for the relief will be calculated on a daily basis. Relief will be adjusted, including retrospective adjustment, in cases where the

amount of rates payable changes.

State AidRetail Relief is subject to State Aid limits. Ratepayers are required to inform the Council immediately if an award of Retail Relief has been made and they have received €200,000 in total of De Minimis aid within the current financial year, or the previous two financial years.

Further information on State Aid can be found at https://www.gov.uk/state-aid

Decision MakingDecisions in respect of awards of Retail Relief will be made by officers.

Complaints and AppealsWill follow the process set out in the main Discretionary Rate Relief Policy.

Contact usBoston Borough CouncilMunicipal BuildingsWest StreetBOSTONLincolnshirePE21 8QR

: (01205) 314200: info@boston.gov.uk: www.boston.gov.uk

Other formatsWe can provide this information in other languages and formats for example, in large print, in Braille, on CD or audio cassette.Please phone 01205 314200.