£300m business rates relief fund now on hold due to snap election
The implementation of the fund will now be the responsibility of the next government, to be elected on 8 June
The introduction of the new £300m business rates relief fund has been postponed because of the snap general election, according to a government spokesperson.
The £300m relief fund, which was announced by Philip Hammond in the 2017 Spring Budget, was set up to support UK companies expecting a dramatic rise in business rates following the revaluation on 1 April this year.
However, following the shock decision by Theresa May to announce a general election for June 8, the arrival of the fund could face a potential delay of several months.
Although a consultation on the scheme’s implementation has already been held, it will now be under the control of the next government to create a response and put the fund into action.
Originally scheduled to take place in 2015, the revaluation had been postponed due to the general election which took place in that year, leaving it subject to bigger changes in the property market.
As a result, April’s revaluation saw many start-ups and small businesses facing increases of over 100%.
Mark Rigby, chief executive of CVS, said: “The relief fund was negotiated and designed to help those shouldering the biggest increases through the revaluation.
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“For the distribution of that relief to now be delayed is an unhappy consequence of the general election and will cause grave concern to small businesses already worried about the burden they are facing.”