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Councils fail to provide Covid business rates relief

Many retailers have not only missed out on the Covid grants, but attempts to claim the lost funds were being hampered by local councils

Business rates refund failures

Many councils in England failed to provide stores with the backdated small business rates relief and Covid-19 grants owed, according to research by chartered surveyors Bankier Sloan.

All small businesses in England with a rateable value under £15,000 should receive small business rate relief (SBRR). Receipt of this relief was a requirement for small businesses to receive the £10,000 Covid grants last year.

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However, Bankier Sloan chartered surveyor Ian Sloan told Better Retailing many retailers had not only missed out on the relief and subsequently the Covid grants, but attempts to claim the correct value of backdated relief were being foiled by council errors.

Nearly 260 councils responded to Freedom of Information requests by Sloan, 163 (63%) gave a backdating period different from the government’s advised 1 April 2012 cut-off point.

A total of 44% of responding councils were limiting relief to six years, while some were limiting backdated claims to as recently as 2017.

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Sloan referenced a 2017 letter from the Department for Communities and Local Government to councils warning: “There is no legal basis on which local authorities can refuse the granting of SBRR to eligible ratepayers in relation to chargeable days after 31 March 2012.”

Since 2011, eligible small businesses should have been automatically granted SBRR, but Better Retailing understands some local authorities had continued to require applications for the relief beyond this date.

Find out more on our coronavirus information hub for retailers

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