Agenda item

Non-Domestic (Business) Rates Policy 2026-27

Executive Summary

The Non-Domestic (Business) Rates Policy 2026-27 has been revised to reflect the changes to schemes announced by government and includes guidelines as to how the schemes are to be implemented and the financial implications on the authority.

Options considered.

The policy is discretionary, so members can decide not to agree to the recommendations.

Consultation(s)

The Government expects local authorities to use their discretionary relief powers to grant these reliefs.

The Supporting Small Business Relief, Hardship Relief, Film Studios Relief, Flood Relief, Electric Vehicle Charging Points and Electric Vehicle Only Forecourts and Retail Hospitality and Leisure Relief up to 31/03/26. All of these (except the Hardship Policy) will be compensated in full for our loss of rates income. This compensation will be paid by section 31 grant and calculated based on the returns that the council makes under the rates retention scheme.

The Council’s Discretionary Rate Relief Policy has been revised to reflect these changes.

Recommendations

1. It is agreed by Full Council that the Revenues Manager continues to have delegated authority to make decisions up to the NNDC cost value of £4k as indicated in Appendix A.

2. It is agreed by Full Council that the Revenues Manager continues to have delegated authority to make Hardship Relief decisions up to the NNDC cost value of £4k as indicated in Appendix C.

3. It is agreed by Full Council that the Rate Relief Policy is revised as indicated in Appendix A, B and C.

Reasons for recommendations

The new policy will enable the Supporting Small Business Relief, Hardship Relief, Film Studios Relief, Flood Relief, Electric Vehicle Charging Points and Electric Vehicle Only Forecourts and Retail Hospitality and Leisure Relief up to 31/03/26 to be awarded discretionary reliefs.

Background papers

1. In the Budget on 26 November 2025 the Chancellor announced the Government would replace the 40% Retail, Hospitality and Leisure Relief with lower business rate multipliers, introduce a 2026 Supporting Small Business Scheme plus extend the previous 2023 scheme by one year, introduce Electric Vehicle Charging Points and Electric Vehicle Only Forecourts Relief.

2. In the Budget on 30 October 2024 the Chancellor announced the Government would extend the award of Retail, Hospitality and Leisure Relief but that it will reduce the relief from 75% to 40% for properties up to a cash limit of £110,000 per business for the 2025/26 financial year.

3. In the Budget on 6 March 2024 the Chancellor announced the Government would introduce Film Studios relief of 40% until 2034 for properties from the 2024/25 financial year subject to subsidy control rules.

4. In the Budget on 17 November 2022 the Chancellor announced a new Supporting Small Business (SSB) Relief scheme which will cap bill increases at £600 per year for any businesses that had a Rateable Value (RV) increase from 1 April 2023 caused by the revaluation and consequently lost Small Business Rates Relief or Rural Rate Relief.

5. Under section 49 of the Local Government Act 1988 businesses can apply for Hardship Relief. This scheme has now been incorporated within this rate relief policy. The cost of this scheme is funded in accordance with the Non-Domestic Rates financial retention rules.

6. Under the government’s flood recovery framework, businesses can apply for Flood Relief. This scheme has now been incorporated within this rate relief policy. Businesses can receive a minimum of 3 months rate relief. The cost of this scheme is fully funded by government.

Wards affected

All

Cabinet member(s)

Cllr Lucy Shires

Contact Officer

Sean Knight

Revenues Manger

Sean.Knight@north-norfolk.gov.uk