The statement comes after it was reported by the Sun that Sajid Javid, Secretary of State for Communities and Local Government, said the reforms were “not a priority issue” to a cross-party House of Commons committee last week. This raised concerns that rates relief previously promised to pubs would not be forthcoming.
However, the DCLG has since updated its website – dated Friday 21 April – stating: “The Government has considered the responses to the consultation on the scheme announced at Spring Budget 2017 for discretionary business rates relief and determined that final allocations to local authorities will be made according to the draft allocations published as part of the consultation.”
Budget promises
During the Budget speech on 8 March, Chancellor Philip Hammond said the Government would offer a discretionary fund of £300 million to support businesses most affected by the revaluation.
The ALMR, who yesterday called on the Government to “stick to its promises” around rates relief, welcomed the confirmation that the forthcoming election will not delay payments from the scheme.
Kate Nicholls, ALMR chief executive, said: “The unexpected general election immediately raised questions about whether recently announced Budget measures, such as the discretionary relief scheme, would go ahead.
Disproportionate impact on pubs
She said: “Pubs and restaurants across the UK are suffering disproportionately under the new business rates bills, so the ALMR was prompt in calling for a continued commitment to pledges made in the Budget.”
Nicholls added that it was “reassuring” the Government has now listened and acted – “providing a measure of stability and certainty”, and has urged struggling publicans to contact their local authorities to see how they can apply for the funds.
Mark Rigby, chief executive of business rent and rates specialists CVS, said: "I am heartened that the DCLG has sought to clarify their stance over this important and much needed initiative.
“I would now urge councils across England to expedite the distribution of this relief to those firms hardest hit by the revaluation with business rates bills having already been sent out and the first tax instalment having been collected."
Payments cannot come soon enough
“Discretionary relief payments cannot come soon enough for operators facing huge rates rises that threaten their businesses,” Nicholls said.
“However, this relief is fire-fighting and the business rates system needs more fundamental reform.”
She urged the post-election administration to honour the present Government’s commitment to a wider, wholesale reform of the business rates system, to level the playing field across industries. This would “eradicate anomalies such as the hugely reduced share paid by online retailers”, she added.
The relief payments would provide further financial help, on top of the £1,000 pub discount.