21 December 2005 Hardship Relief Scheme Introduced For Business Ratepayers
Finance Minister, Jeff Rooker, has announced the introduction of the Hardship Relief scheme to help business ratepayers affected by exceptional circumstances.
Announcing the introduction from 31 December, the Minister said:
“I am pleased to announce the introduction of this scheme, which will address a major shortcoming in the current rating system.
“The intention of the scheme is to allow Government to respond in a practical and timely way to the needs of businesses facing difficulty for reasons beyond normal commercial risk.
“It will allow Government to be more responsive and flexible in reacting to crisis situations when they occur by targeting support where it is most needed.”
The Minister stressed the importance of this scheme, adding:
“I anticipate that the introduction of the scheme will be widely welcomed by the wider business community.”
Anyone who requires advice about the operation of Hardship Relief should contact the Rate Collection Agency on 028 9025 2505.
Notes to editors:
- The purpose of Hardship Relief is to provide support for viable businesses and organisations that are affected by some form of crisis. Hardship must be caused by ‘exceptional circumstances’ and it works by removing the liability to pay business rates for the period that the business or organisation is affected.
- As the Scheme is intended to cover unforeseen occurrences it is not possible to draw up a definitive list. However, a crisis would have to result in a serious loss of trade or have a major impact on service provision. ‘Exceptional circumstances’ will usually be circumstances that are external to the business or organisation, be beyond normal business risk, unavoidable and unforeseen. The impact of strikes within a business or organisation, increased operating costs (e.g. energy, transport) and increased market competition would not be considered ‘exceptional’.
- All non-domestic properties, including those occupied or owned by organisations including the voluntary sector, will be eligible for Hardship Relief, provided they satisfy certain conditions.
- The Rate Collection Agency will be responsible for administering the Scheme. Applications must be supported by evidence and some form of business recovery plan will normally be required.
- If an applicant is successful he will receive full relief from rates, subject to EU State Aid limitations, over the relevant period of hardship. Hardship Relief is intended to be temporary and it is expected that it should apply only for the length of time that it takes a business or organisation to recover from the exceptional circumstances.
- Anyone who requires advice about the operation of Hardship Relief should contact the Rate Collection Agency on 028 9025 2505.
Policy documentation on the Hardship Relief Scheme is available on the Internet at: www.nics.gov.uk/ratingpolicy
