Pubs to benefit from automatic rate relief

Hundreds of pubs will benefit from automatic business rate relief under new Government plans.

Local Government Secretary Eric Pickles today announced that those who qualify for small business rate relief (a rateable value below £18,000) will no longer have to apply for the discount.

The new legislation will be included in the upcoming Localism Bill, which will also sets out a ballot scheme where small businesses can vote for how their money will be used.

Business rates are the third largest cost to many small companies, and a lot are unaware they are entitled to rate relief, according to the Federation of Small Businesses (FSB).

An estimated 500,000 ratepayers are eligible for rate relief and the Government is doubling the normal discount for next year, which will now be worth £390m. About 345,000 could pay no rates at all.

Small firms in England are entitled to the relief if they occupy only one property and the rateable value of that property is less than £18,000, or £25,500 in London.

"We have already doubled the rate discount small businesses get, but we want to see as many small business ratepayers as possible to claim their tax cuts so we will change the rules so councils can administer the scheme without being caught up in unnecessary Government red tape," said Pickles.

"We shall also let councils set discounts locally and we are considering proposals to let them keep what they collect. This will give councils a genuine financial stake in their local economy."

FSB national chairman John Walker added: "We have long been calling for small business rate relief to be made automatic and this cash injection will be of great help to many small businesses.

"The onus is now on councils to be creative and not needlessly make small businesses go through an application process when it is obvious they are eligible."