Applications for hardship relief will be considered where the business is suffering from unexpected financial difficulty, which is outside of the normal risks associated with the business. Awards will only be given in exceptional circumstances.
The amount of relief awarded can reduce or remit the full amount of Business Rates due. Awards are intended to be a short-term solution while the business works towards improving its financial situation. It is unlikely that any relief will be granted for more than the current financial year.
The business will be expected to be taking/have taken appropriate action to mitigate or alleviate hardship, such as:
- speaking to the council’s Business Growth team and/or taking professional business or financial advice
- reviewing their pricing structure
- re-negotiating with creditors, including the landlord regarding rent (where appropriate)
- having a robust business plan in place to address hardship
A reduction in Business Rates on the grounds of hardship will be awarded where the council is satisfied that:
- the ratepayer would sustain hardship if relief were not applied
- any short-term reduction or remission of rates would be significant to the future viability of the business; and
- it is reasonable for the council to award relief having regard to the interests of its Council Tax payers
Hardship relief will generally not be considered appropriate where:
- the business is profitable
- the current hardship (financial or otherwise) could have been foreseen and avoided
- the business has experienced a minor loss in trade in comparison to the annual turnover of the business
- the drawings / remuneration of the Director(s) or owner are above a ‘reasonable’ amount
• The business is relatively new and hardship relief is being requested to fund the progression of the business - a similar facility is already being provided within the same locality, or within a reasonable distance
- the business premises are empty
Any application for relief should include the following information:
- why the business is suffering from financial hardship
- what steps have been/are being taken to keep the business sustainable
- audited accounts up to the last 3 years. Where these are not available, projected figures should be provided instead
- a cashflow forecast for the next 12 months
- for sole traders/partnerships, details of drawings from the business and a breakdown of personal income and expenditure
- number of employees
- a comprehensive business plan
- how the business is beneficial to the local community
- details of any relationships with other businesses, particularly with local suppliers
You can find out more information regarding hardship relief, how we consider applications and what evidence is required in section 15 of our discretionary relief policy.
For further information on hardship relief, you can contact the Business Rates team.