Funding available for Telford & Wrekin businesses

More than 300 local businesses in Telford and Wrekin are set to benefit from a new but temporary business rates relief scheme.

Telford & Wrekin Council’s share of a national pot of money is £685,000, which will be distributed to local businesses over the next four financial years.

Businesses with a rateable value of more than £15,000 and less than £200,000 are eligible to receive funding through the scheme.

It is front loaded funding from the Government, meaning that the council will get £400,000 in the first year, £194,000 in 2018/19, £80,000 in 2019/20 and £11,000 in 2020/21. The government has advised that there is no scope to roll money forward to future years if there is an underspend.

In April this year, the rateable value of businesses was changed due to a revaluation by the Government’s Valuation Office Agency. 

This new Temporary Business Rates Relief Scheme will provide financial support to eligible businesses whose properties were subject to an increase in rateable value of more than five per cent as a result of the revaluation.

It is anticipated that 337 businesses in Telford and Wrekin will benefit from an award of discretionary relief. The money will be automatically awarded so there is no need for businesses to apply and so that businesses receive the benefit as soon as possible after considerable delays waiting for Government guidance. 

Councillor Lee Carter, Telford & Wrekin Council’s cabinet member for Finance, Commercial Services and Economic Development, said: “This scheme has been designed to provide temporary relief to small and medium sized local businesses and it is obviously something that we welcome.  

“However, we wish that the funding didn’t taper off as quickly as it does as the allocation for next year is less than half of the amount for this year meaning that the relief provided by the scheme is only of temporary benefit to local businesses.”

The scheme is expected to be approved by Telford & Wrekin Council’s cabinet when it meets on 14 September.

Businesses already benefit from a range of relief schemes to reduce the burden of business rates. These include small business rate relief, charitable relief, pub relief and transitional relief with advice on eligibility available to businesses from the Council’s business rates team.