DCLG announce allocation for £300m business rates relief fund amidst confusion

The allocation for the £300m package promised in the Spring Budget to ease pressure on small businesses hit hardest by changes to business rates has been released by the DCLG.

This comes after reports that the fund had been pushed back until after the snap election, a fact that PSE has learnt is not the case. DCLG has told councils that they can access the funds as soon as they have a scheme in place for distributing the money.  

The change will allow businesses coming out of small business rate relief to benefit from an additional cap, and will mean that no small business losing rate relief would see their bill increase next year by more than £50 a month.

The announcement of the distribution of the fund came after a consultation on the business rates relief scheme closed on 7 April and was published on the DCLG’s website.

News reported over the weekend stated that the fund would not come into force until months after the snap election, but DCLG has confirmed that the money will be available as promised. 

At the announcement of the Spring Budget, chancellor Phillip Hammond said he had “listened to the concerns raised by colleagues and businesses,” about the changes to business rates and was bringing in the change to support businesses who were set to have their revenue hit the hardest.

Today’s news also follows anger from employers group in February that warned that potential changes to business rates appeals could be “potentially illegal” and could be damaging for small businesses.

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