Written Question · S5W-34894 · Session 5
What support it is giving to small businesses that are unable to apply for business rates relief due to them paying their rates as an inclu…
The question
To ask the Scottish Government what support it is giving to small businesses that are unable to apply for business rates relief due to them paying their rates as an inclusive payment alongside rent to their landlord.
The answer
Since the start of the pandemic the Scottish Government has allocated over £3 billion to help businesses through a comprehensive package of support measures. This includes among others, the Business Support Grant Scheme, the Strategic Framework Business Fund, and the Pivotal Enterprise Resilience Fund. In total, around 383,000 business support awards totalling? £2.3 billion were made between March and the beginning of October 2020. More than 90% of the funds allocated to business support since October are now live with the bulk of funding to support businesses affected by legal restrictions under the Strategic levels.
The Business Grant Funding Scheme was introduced to support businesses occupying non-domestic properties. This included the Small Business Grant which provided £10,000 for the first eligible property, and 75% grants (£7,500) to each additional property, in receipt of the Small Business Bonus Scheme (SBBS), or eligible for the SBBS but in receipt of other reliefs such as charitable rates relief. Phase 3 of this scheme extended eligibility to businesses typically occupying shared spaces , business incubators or shared industrial units, but who are not the ratepayer, provided they could evidence that they were required to contribute towards the charges associated with the non-domestic rates liability. This Scheme closed on 10 July.
From 2 November the Strategic Framework Business Fund offers financial support for businesses required to close by law, or specifically required to modify their operations by law. Eligibility depends on where the premises are located and what level of restrictions are in place at any point in time. These grants are available for eligible business with premises registered for Non-Domestic rates. Businesses that pay non-domestic rates through their landlords may also apply if they can provide evidence of this.
Further, the Local Authority Discretionary Fund empowers local authorities to support businesses and self-employed people in their area who require additional financial support, including supply chain businesses impacted by restrictions. This fund is specifically designed to target businesses who have not received direct financial support through other Scottish Government schemes, and recognises the insight that councils have on the business community in their area and where funding would be most effectively deployed in supporting local economies. It is for Local authorities to use this fund at their discretion, and they will undertake their own assessment of need.
We continue to seek the funding and powers we require to support Scottish businesses through this pandemic and to engage with specific sectors who may face unique impacts and consider how best to provide help and support.
Non-domestic rates relief awards reduce the rates liability associated with a non-domestic premises. A property may still be eligible for a particular relief regardless of the agreed terms of a tenancy agreement. The Scottish Government delivers the most generous non-domestic rates regime in the UK, which includes a package of reliefs that in 2021-22 is worth an estimated £914 million. As part of this we provide the Small Business Bonus Scheme which, based on official statistics as at 1 July 2020, lifts 117,000 properties out of rates altogether.
Tenants who feel that their tenancy agreement should better reflect the costs of operating from a particular premises may wish to discuss this matter with their landlord. The Scottish Government strongly endorses the Code of practice for the commercial property sector Code of practice for the commercial property sector
- GOV.UK (www.gov.uk) and expect landlords and tenants to come together to arrive at a mutually beneficial agreement. Landlords should also provide support to businesses if they too are able to do so .
The Business Grant Funding Scheme was introduced to support businesses occupying non-domestic properties. This included the Small Business Grant which provided £10,000 for the first eligible property, and 75% grants (£7,500) to each additional property, in receipt of the Small Business Bonus Scheme (SBBS), or eligible for the SBBS but in receipt of other reliefs such as charitable rates relief. Phase 3 of this scheme extended eligibility to businesses typically occupying shared spaces , business incubators or shared industrial units, but who are not the ratepayer, provided they could evidence that they were required to contribute towards the charges associated with the non-domestic rates liability. This Scheme closed on 10 July.
From 2 November the Strategic Framework Business Fund offers financial support for businesses required to close by law, or specifically required to modify their operations by law. Eligibility depends on where the premises are located and what level of restrictions are in place at any point in time. These grants are available for eligible business with premises registered for Non-Domestic rates. Businesses that pay non-domestic rates through their landlords may also apply if they can provide evidence of this.
Further, the Local Authority Discretionary Fund empowers local authorities to support businesses and self-employed people in their area who require additional financial support, including supply chain businesses impacted by restrictions. This fund is specifically designed to target businesses who have not received direct financial support through other Scottish Government schemes, and recognises the insight that councils have on the business community in their area and where funding would be most effectively deployed in supporting local economies. It is for Local authorities to use this fund at their discretion, and they will undertake their own assessment of need.
We continue to seek the funding and powers we require to support Scottish businesses through this pandemic and to engage with specific sectors who may face unique impacts and consider how best to provide help and support.
Non-domestic rates relief awards reduce the rates liability associated with a non-domestic premises. A property may still be eligible for a particular relief regardless of the agreed terms of a tenancy agreement. The Scottish Government delivers the most generous non-domestic rates regime in the UK, which includes a package of reliefs that in 2021-22 is worth an estimated £914 million. As part of this we provide the Small Business Bonus Scheme which, based on official statistics as at 1 July 2020, lifts 117,000 properties out of rates altogether.
Tenants who feel that their tenancy agreement should better reflect the costs of operating from a particular premises may wish to discuss this matter with their landlord. The Scottish Government strongly endorses the Code of practice for the commercial property sector Code of practice for the commercial property sector
- GOV.UK (www.gov.uk) and expect landlords and tenants to come together to arrive at a mutually beneficial agreement. Landlords should also provide support to businesses if they too are able to do so .
In the Official Report
No contribution in the Official Report cites S5W-34894 by reference.