Chancellor extends one-year business rates holiday for all retailers

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Chancellor extends one-year business rates holiday for all retailers
Previously, only small and independent retailers benefited from the one-year business rates holiday.
// Chancellor Rishi Sunak extends business rates holiday to all retailers amid coronavirus crisis
// In last week’s Budget, the 1-year holiday only applied to commercial premises with a rateable value under £51,000
// Government also providing £330bn of loans and guarantees for UK businesses

The one year business rates holiday has been extended to all retailers as part of the government’s updated economic support for UK businesses and amid the coronavirus crisis.

When Chancellor Rishi Sunak first revealed the one-year business rates holiday in the Budget last week, it only applied to commercial premises with a rateable value under £51,000.

This meant only small and independent retailers benefited, and the larger chains missed out.


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Sunak has now extended the business rates holiday to all retailers starting in the next government financial year.

The government also revealed it would provide £330 billion of government-backed loans and guarantees for UK businesses.

”Any business who needs access to cash to pay rent, salaries, suppliers or buy stock will be able to access a government-backed loan on attractive terms,” Sunak said.

This will be offered through two schemes, with the first being a new lending facility agreed with the Bank of England for larger businesses.

The second scheme, for small and medium-sized businesses, is a business interruption loan that is extended to £5 million with no interest due for the first six months.

Meanwhile, cash grants for the UK’s smallest businesses have been increased from £3000 to £10,000.

Sunak also confirmed that for businesses with insurance policies that cover pandemics, the government’s advice will allow them to make an insurance claim.

For those without insurance, Sunak said there would be an additional cash grant of up to £25,000 per business to help them mitigate the economic impact of the coronavirus pandemic.

The Covid Bill also allowed Sunak to bring about any further financial support he deems necessary in the future.

”The coronavirus is a public health emergency but it is also an economic emergency we have never in peacetime faced an economic fight like this one,” Sunak said.

”This struggling will not be overcome by a single package of measures but a collective national effort.”

Sunak revealed the updated economic support just a few hours after some of the UK’s biggest retailers came together in a rare moment of unity to urge Prime Minister Boris Johnson to suspend all business rates bills during the coronavirus pandemic.

In a letter – sent by Moss Bros this afternoon and signed by the Retailers Rates Action Group – the PM was urged to introduce a new package of temporary measures to help retailers survive the economic impact of Covid-19 as it moves to its most serious stage.

On Monday, Johnson told the UK to avoid all unnecessary public interaction including visiting retail destinations.

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10 COMMENTS

  1. What about exceeding the total de-minimus state aid of 200,000 Euros over a three year period as most medium to large companies will exceed this with the business rates holiday? Will the one year business rates holiday apply?

  2. This all very well but we are a small business, online retailer and mainly sell via platforms such as Amazon as 3rd party sellers. As we do not have shops ee seemingly do not qualify for the rates relief or the grants which is totally wrong as our competitor down the road who has a shop but does 90% of their trade online does qualify for the rates relief.
    We are still retailers and consumers are not buying from us either as they are concerned about their income….

    All businesses need support not just the highstreet Retail and entertainment businesses…. Also what about trades such as electricians and plumbers and for that matter shop fitters….. they are all affected.

    What we need to see is support for all businesses and equal treatment. If the government pushes the pause button on normal life it needs to conver the effects of that so that normal life will continue once they push play again.

  3. i run a furniture shop, we are getting nil business rates on our shop but still have to pay on our warehouse. so no income for however long but still have to pay £8k for warehouse, that £8k could go towards staff wages for 3 months.

  4. We are wholesalers who fully rely on retail. Are we going to get any business rates relief or grants?? Our trade has completely stopped the last 5 days as all of our customers are retailers. We are classed as warehousing.

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