Rate relief
We are facing significant financial challenges for 2024/25 and beyond and are considering a range of options to contribute towards addressing the shortfall in funding.
Cheshire West and Chester Council has applied 100% rate relief to the majority of charities and not for profit organisations for many years but due to the financial pressures we are facing we are considering changes to our Discretionary Rate Relief Policy.
We are now looking to remove or reduce the 20% discretionary relief from schools, national charity shops and not-for-profit leisure organisations with effect from April 2024.
We are keen to ensure that affected organisations are engaged and communicated with before the proposed new discretionary relief policy comes in to effect in April and will actively seek comments on our proposed approach.
Summary of changes
Charities
| Area | Summary of proposed changes to discretionary rate relief policy 2024-25 |
|---|---|
| Large Charities |
The percentage of top up discretionary rate relief will be removed where it is deemed charities have sufficient financial resources to meet some or all of their annual business rates liability. If a charities financial accounts show a level of unrestricted reserves which would allow them to continue to operate for more than 12 months, they must demonstrate or provide a business plan detailing how these additional reserves are to be used to benefit the local community. The percentage top up relief will be removed where there is a significant membership or an entry fee, we will consider whether the subscription or fee justifies a discretionary top up funded by council tax payers. |
| National Charity shops |
The percentage top relief will be removed for National Charity Shops & Cafes where they cannot demonstrate that funds collected locally are reinvested locally. |
| Schools |
In the case of Schools, including academies, voluntary aided, voluntary controlled, church or granted aided, we will not grant discretionary top-up to the mandatory relief, due to the significant funding streams available to schools |
Not for profit organisations
| Area | Summary of proposed changes to discretionary rate relief policy 2024-25 |
|---|---|
| Community interest companies |
Community Interest companies providing leisure facilities across the borough, for which members and visitors are charged a fee will have their current level of discretionary relief of 100% reduced to 90%. Organisations operating a restrictive membership policy for which a fee is payable will not be eligible for relief. |
| Other considerations or changes |
Organisations where members have regular access to a licensed bar facility may see the level of discretionary rate relief reduced.
Organisations with significant financial resources need to demonstrate plans to spend reserves before any relief is granted. |
If you have any questions on how these changes may impact your organisation, please contact the business rates team ndr@cheshirewestandchester.gov.uk.
Types of rate relief
If you pay business rates, you may be eligible for rate relief. There are several rate relief schemes available.
From 1 April 2023 the Government will provide 75% retail, hospitality and leisure relief to occupied eligible properties in England up to a cash cap limit of £110,000 per business (together with any other business in the same group).
The relief will be applied for the 2023/24 financial year only. Details of types of properties that are eligible for the relief can be found on Gov.UK website.
The Retail, Hospitality and Leisure Relief Scheme is also subject to the Minimal Financial Assistance limits of £315,000 over three years (including 2023/24).
Extended Retail Discounts granted in 2021/2022 do not count towards the limit. Covid business grants received from Local Government and any other subsidy claimed under the Minimal Financial Assistance or Small Amounts of Financial Assistance over the three year period are included.
In most cases 2023/2024 bills will include the relief. All businesses will be asked to check their eligibility to this relief and to notify us if they either are in breach of the cash cap or have received more than the Small Amounts of Financial Assistance or Minimal Financial Assistance limits of £315,000 over three years (including 2023/24).
If you wish to opt out from this relief or make an application then email ndr@cheshirewestandchester.gov.uk.
The Rural Settlement List is used as the basis for granting rural rate relief to certain businesses situated in rural areas. The types of business that benefit from the relief are general stores, Post Offices, Public Houses, food shops and petrol filling stations. Other rural businesses may also qualify. We have reviewed the contents of our Rural Settlement List and we are making alterations to the List to take effect from 1 April 2016.
From 1 April 2023 the Government will provide a Supporting Small Business Relief Scheme (SSBR) to help those ratepayers who as a result of the change in their rateable value at the revaluation are losing some or all of their Small Business, Mandatory Rural Rate Relief or 2017 SSBR and, as a result, are facing large increases in their bills. Charities and Community Amateur Sports Clubs, who are already entitled to mandatory 80% relief, are not eligible for 2023 SSBR.
To support ratepayers, 2023 SSBR will ensure that the increase in the bills will be limited to a cash value of £600 per year in certain circumstances. This cash maximum increase ensures that ratepayers do not face large bill increases in 2023/24 after transitional relief and small business rate relief (as applicable) have been applied.
The scheme will last for three years 2023/24, 2024/25 and 2025/26. However, any business receiving 2017 SSBR in 2022/23 will only be eligible to receive relief in 2023/24 so this will end on 31 March 2024.
All other eligible ratepayers remain in 2023 SSBR for the three years or until they reach the bill they would have paid without the scheme. A change of ratepayers will not affect eligibility for the Supporting Small Business scheme, but eligibility will be lost if the property falls vacant or becomes occupied by a charity or Community Amateur Sports Club.
If eligible the relief will automatically be applied to your bill. All businesses will be asked to check their eligibility to this relief and to notify us if they either are in breach of the cash cap or have received more than the Small Amounts of Financial Assistance or Minimal Financial Assistance limits of £315,000 over three years (including 2023/24).
If you wish to opt out from this relief then please email ndr@cheshirewestandchester.gov.uk.
You can complete a rate relief for sport application form Rate relief for sport application form (PDF, 142KB and email to our business rates team on ndr@cheshirewestandchester.gov.uk
Applications must be made in writing to the business rates office (see 'where to find help' at the bottom of this page). We can only grant hardship relief if it is satisfied that the ratepayer would sustain hardship if the authority did not do so and it would be reasonable to do so, having regard to the interests of people subject to Council Tax.
Applications must be made in writing to the business rates office. Relief would primarily be considered only for ratepayers who have difficulty in occupying or vacating premises at one time and have to do so over a phased period. Relief can only be awarded for a short period.
If you occupy only one business premises in England and the rateable value is up to £12,000 you are eligible for rate relief.
- if the property you occupy has a rateable value of up to £12,000 you will qualify for 100% relief
- if the property has a rateable value between £12,001 and £14,999 you will receive relief on a sliding scale
- businesses now able to take one an additional property and retain SBRR on their first property for 12 months
Charities and non profit making organisations may be eligible for rate relief.
For further information on business rates relief please refer to the Business Rates Discretionary Rate Relief Policy 2024-25 (PDF, 254.3KB).
Where to find help
- Email: ndr@cheshirewestandchester.gov.uk
- By post: Revenues and Benefits (Business Rates Office), PO Box 187, Ellesmere Port, Cheshire, CH34 9DB