The UK government has recently announced a final package of support for businesses, a total of £116 million over the course of two years, in order to help alleviate the impact of changes to business rates. This move comes as a much-needed relief for small and medium-sized enterprises (SMEs) who have been facing increasing financial pressures due to rising business rates. The government’s commitment to supporting businesses is a welcome step in these uncertain times and will hopefully help them thrive and grow.
The business rates system, which is a tax on commercial properties, has been a cause of concern for many businesses. Ongoing changes to the rates have meant that some businesses, especially those in high street locations, have been facing a significant increase in their financial burden. The government has recognized the challenges that businesses are facing and has taken decisive action to provide much-needed support.
The final package, which includes £116 million of support, will be spread over two years. This includes a £100 million fund for the hardest hit businesses, particularly those in the retail, hospitality, and leisure sectors. This fund will provide relief to those businesses that have seen a significant increase in their rates due to revaluations and will help them with their cash flow. In addition, there is a £16 million fund for local authorities to support affected businesses in their area.
This support from the government is crucial for the survival and growth of SMEs, which are the backbone of the UK economy. The package also includes a £300 million discretionary fund for local authorities to distribute to businesses, particularly those that have been affected by the recent COVID-19 pandemic. This will enable local authorities to target support to businesses that have been hardest hit by the crisis and help them get back on their feet.
The announcement of this final package is a testament to the government’s commitment to supporting businesses. The Minister for Local Government, Luke Hall, stated that the government is ”determined to ensure high streets remain at the heart of local communities” and that they are ”making sure councils are able to provide adequate support to businesses who need it”. This support is not only limited to the £116 million package, as the government has also made other changes to the business rates system to provide additional relief to businesses.
For example, the government has introduced a new business rates retail discount, which has increased from one-third to 50%, for eligible retail businesses. This discount, which is available for properties with a rateable value of less than £51,000, will provide much-needed relief to small retail businesses who have been struggling with high rates. In addition, the government has also introduced a new business rates relief for pubs, which will save them up to £1,000 per year.
Overall, this final package of support for businesses is a positive step towards helping them overcome the challenges posed by the changes to business rates. It demonstrates the government’s determination to support businesses, particularly those on the high street, and to help them thrive. The government has also acknowledged that more needs to be done to ensure the sustainability of businesses, and they have promised to review the business rates system to make it fairer and more transparent.
In conclusion, the final package of £116 million of support for businesses is a welcomed move that will provide much-needed relief to SMEs. With this support, businesses can continue to contribute to the economy and create job opportunities in their local communities. The government’s commitment to helping businesses is a sign of their determination to build a thriving economy and support those who contribute to it. Let us hope that this support will enable businesses to not only survive, but also to thrive and grow in the coming years.
