Businesses outside of the retail, hotel, and leisure sectors were not permitted to appeal their business rate payments and were instead guaranteed funding from a £1.5 billion support package; however, many councils have not yet begun making payments under the scheme.
Almost 18 months after its inception, little over half of the councils in England have begun making payments to COVID-affected businesses from a £1.5bn support package.
Due to the epidemic, businesses in the retail, hospitality, and leisure sectors were granted a business rates vacation, while companies in other industries were told they could not appeal their business rates payments.
Instead, in March of last year, a £1.5 billion business rates relief fund was created, with local councils charged with administering the funds.
Gerald Eve, a property consultant, made a Freedom of Information request to 309 councils, of which 207 responded.
It was discovered that slightly more than half, or 119 councils, had begun making payments to businesses under the scheme.
These councils are responsible for £632 million of the £1.5 billion deal, although they have disbursed only £329 million.
Gerald Eve stated that if this tendency was projected to the remaining councils in England, a maximum of £820 million of the possible £1.5 billion would have been handed out.
Jerry Schurder, the head of business rates policy at Gerald Eve, stated: “This fund was intended to assist firms badly hit by the pandemic for which alternative business rates support was denied.
The government claimed that Care (the COVID-19 Additional Relief Fund) was the quickest and most equitable way to assist firms in need, but the previous 17 months have proven this to be a blatant exaggeration.
“In reality, the contrary is true.
“Unfortunately, it’s too little, too late for the tens of thousands of businesses that were retroactively denied the opportunity to challenge their rates bills yet have yet to get a dime from the local authorities.”
A government spokeswoman said: “The government has provided unprecedented help for businesses, including a total of £26 billion in grants to those affected by COVID-19-related limitations.
Councils are responsible for awarding funds to businesses based on local conditions.
